Potential Maximum 1st Year Contributions to a Defined Benefit Plan
The amounts below are estimates of the potentially large tax-deductible contributions available to high-income business owners starting a Defined Benefit plan during 2011.
Some of the considerations that will help determine whether a Defined Benefit plan makes sense are:
- Owner’s level of W-2 income (or net earned income, if unincorporated)
- Age, length of service, and wages of any employees
- Anticipated contributions after the initial 2011 plan year
- Existence of any other retirement plans
- Ownership of any other businesses
| Age of Owner | Potential 2011 Contribution |
| 37 | $79,000 |
| 40 | $97,000 |
| 43 | $118,000 |
| 47 | $152,000 |
| 50 | $205,000 |
| 53 | $236,000 |
| 57 | $288,000 |
| 60 | $290,000 |
| 63 | $290,000 |
| 67 | $300,000 |
| 70 | $270,000 |