Defined Benefit Plan Self-Employed 2027 Contribution Calculator
Estimate the 2027 maximum tax-deductible Defined Benefit Plan contribution for a self-employed professional age 45+.
Why a Defined Benefit Plan in 2027?
Defined Benefit (DB) plans let high-income self-employed workers contribute MUCH more than a Solo 401(k) — often $100K-$300K/year for ages 50+. The 2027 IRC §415(b) annual benefit limit is projected at $290,000/year of retirement income. To fund that benefit, an actuary calculates the contribution needed each year based on your age, target retirement, expected return, and mortality. Source: IRC §415(b), Rev. Proc. 2024-40. Last updated: May 2026.
How DB Contributions Are Calculated
An actuary computes the present value of your target retirement benefit at your retirement age, then subtracts existing plan assets and earnings, divides by years to retirement, and amortizes funding. Older participants close to retirement need larger annual contributions because there's less time for compounding. A 55-year-old can often contribute $150K-$250K, vs $50K-$100K for a 45-year-old.
Best Candidates for DB Plans
(1) Self-employed professionals age 45-65 with consistent $200K+ income. (2) Doctors, dentists, lawyers, consultants in late-career catch-up mode. (3) Side-business income on top of a W-2 (DB on the side). (4) Empty-nesters with cash flow now that kids are out. The plan favors stable income — large income drops can require contribution rollbacks.
Costs and Administration
DB plans cost $1,500-$5,000/year in actuarial fees plus annual Form 5500 filing. PBGC premiums may apply for plans with non-owner employees. Required for life of the plan — generally minimum 5 years to avoid IRS scrutiny. The tax savings on a $200K contribution at 37% federal + 5% state easily covers these fees 50-100x over.