In brief
There is no single IRS dollar cap like a 401(k). An enrolled actuary sets your contribution based on age, compensation, years to retirement, and plan formula. For owners age 45–60 earning $500,000+, illustrative annual contributions often fall in the $150,000 to $300,000+ range before combining with 401(k) deferrals.
Why age matters
Older participants have fewer years to fund a target benefit, so actuarial formulas typically require larger annual contributions to reach the same retirement balance.
A 55-year-old owner with consistent high income will generally have a higher required contribution than a 45-year-old with the same income, all else equal.
Get an actuarial illustration
Our calculator provides an educational estimate. A formal feasibility study with an enrolled actuary is required before establishing any plan. Contact Montreux for a complimentary review of whether a plan may fit your situation.
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This article is for educational purposes only and does not constitute tax, legal, or investment advice. Individual circumstances vary. Montreux Wealth Management is a registered investment adviser. Contact f.hasan@montreuxwealth.com with questions.