How much can I deduct?

In a proposal we can calculate the total maximum deduction based on the company's employee payroll/census. However, you can get some sense of the available deductions by looking at what is available to the owner as an individual.

Here is a sample of 2015 Cash Balance maximum deductible amounts by individual, based on age:

30  $53,000
35  $68,000
40  $87,000
45  $112,000
50  $143,000
55  $184,000
60  $236,000
65  $243,000
70  $313,000
75  $402,000

For Profit Sharing/401(k) Plans the individual deduction is up to $53,000, or up to $59,000 for those age 50 and over who make a catchup contribution.

Please note, for professional companies (doctors, dentists, lawyers, etc.) with under 25 participants there may be a limit on the deductible amount for the combination plan: if the employer contribution to the Profit Sharing Plan is more than 6%, then the total employer contribution to both plans must be less than 31% of eligible compensation.