The lifetime limit · Calculator
Lifetime limit calculator
Project the largest lump sum a participant's Cash Balance benefit can reach under IRC section 415(b), and the level annual contribution that funds it by a target year.
Maximum lump sum in target year
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Level annual contribution
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Highest maximum in the projection
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Maximum lump sum by year
| Year | Age | Plan year | Max lump sum | Change | Limit used | Contribution | Projected assets |
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How this is calculated
Each year the calculator finds the largest annual benefit 415(b) allows, then converts it to a lump sum.
- Dollar limit: Reduced by 10% for each year of plan participation short of 10.
- Pay limit: 100% of the average pay entered, capped at the 401(a)(17) limit of (held flat). Reduced by 10% for each year of service short of 10.
- Age adjustment: the dollar limit is reduced before age 62 and increased after 65 using 5% interest and the applicable 417(e) mortality table, with no pre-retirement mortality. The pay limit is not age-adjusted.
- Lump sum: the lesser of the two annual limits, converted at 5.5% interest and the 417(e) unisex mortality table.
- Timing: ages are measured at December 31 of each year. Service and participation count calendar years, including the year of hire and the plan's first year.
- Contribution: a level amount deposited at each year end through the target year, earning the asset return, that accumulates to the maximum lump sum in that year. Rounded to the nearest $1,000.
Not reflected: other defined benefit plans of the same employer and the timing of contributions within the year. Results are illustrative, not an actuarial valuation.
For education and planning conversations only. Actual limits and contributions are set by the plan's enrolled actuary using the plan document, census data, and IRS rules in effect for each year.