2022 Cash Balance Contribution Limits
Cash balance plans grow in two ways: by employer contributions based on a specific formula that provides an annual contribution “pay credit” (ex. 3% of compensation from their employer) and by a fixed or variable interest credit (usually linked to an index such as the 30-yr. Treasury Bond), making the future benefit determinable.
For Business Owners, Cash Balance Plan contributions allow you to have the highest savings and tax deductions in a year. Based on the owner’s age and compensation, the annual deductible contribution for an owner can be as high as $245,000 a year. The age of a business owner has a high impact on the contribution limit you can make into your Cash balance Plan. The older the participant, the larger the contribution amount is. This is because cash balance contribution limits consider that the older person has fewer years to save towards the $3.1 million sums that is allowed for cash balance contribution limits.
| Age | 401(k) only | 401(k) with Profit Sharing | Cash Balance* |
|---|---|---|---|
| 70 | $27,000 | $67,500 | $312,897 |
| 69 | $27,000 | $67,500 | $322,542 |
| 68 | $27,000 | $67,500 | $332,008 |
| 67 | $27,000 | $67,500 | $317,598 |
| 66 | $27,000 | $67,500 | $302,899 |
| 65 | $27,000 | $67,500 | $288,958 |
| 64 | $27,000 | $67,500 | $296,257 |
| 63 | $27,000 | $67,500 | $303,493 |
| 62 | $27,000 | $67,500 | $310,656 |
| 61 | $27,000 | $67,500 | $295,863 |
| 60 | $27,000 | $67,500 | $281,774 |
| 59 | $27,000 | $67,500 | $268,357 |
| 58 | $27,000 | $67,500 | $255,577 |
| 57 | $27,000 | $67,500 | $242,927 |
| 56 | $27,000 | $67,500 | $230,638 |
| 55 | $27,000 | $67,500 | $219,010 |
| 54 | $27,000 | $67,500 | $207,997 |
| 53 | $27,000 | $67,500 | $197,547 |
| 52 | $27,000 | $67,500 | $187,647 |
| 51 | $27,000 | $67,500 | $178,241 |
| 50 | $27,000 | $67,500 | $169,321 |
| 49 | $20,500 | $61,000 | $160,865 |
| 48 | $20,500 | $61,000 | $152,834 |
| 47 | $20,500 | $61,000 | $145,225 |
| 46 | $20,500 | $61,000 | $137,998 |
| 45 | $20,500 | $61,000 | $131,150 |
| 44 | $20,500 | $61,000 | $124,646 |
| 43 | $20,500 | $61,000 | $118,470 |
| 42 | $20,500 | $61,000 | $112,616 |
| 41 | $20,500 | $61,000 | $107,053 |
| 40 | $20,500 | $61,000 | $101,769 |
| 39 | $20,500 | $61,000 | $96,750 |
| 38 | $20,500 | $61,000 | $91,984 |
| 37 | $20,500 | $61,000 | $87,458 |
| 36 | $20,500 | $61,000 | $83,163 |
| 35 | $20,500 | $61,000 | $82,345 |
| 34 | $20,500 | $61,000 | $78,372 |
| 33 | $20,500 | $61,000 | $74,591 |
| 32 | $20,500 | $61,000 | $70,994 |
| 31 | $20,500 | $61,000 | $67,572 |
| 30 | $20,500 | $61,000 | $64,316 |
*Assumes 2022 maximum compensation of $305,000. Plan designs may vary based on review of census. Estimated maximum Cash Balance contribution shown is based on IRS maximum limits; actual Cash Balance contributions may be less depending on the actual plan’s provisions as outlined in the Cash Balance plan document as well as the IRS maximum deduction limits.
For details, call 888.872.2364 or request a contact your Regional Sales Consultant.
