Using the retirement calculator you can calculate the maximum annual retirement contribution limit based on your income. Enter your name, age and income and then click "Calculate."
The result will show a comparison of how much could be contributed into an Individual 401k, SEP IRA, Defined Benefit Plan or SIMPLE IRA based on your income and age. If you are taxed as a sole proprietorship use your NET income when using the calculator. If you are incorporated, then only use your W-2 wages when using the calculator. For example, S corporation K-1 distributions (corporate profits) are not included when making the contribution limit calculation.
Note: Consider a defined benefit plan if you want to contribute more than the 2020 Individual 401k contribution limit of $57,000. A 401k plan and a profit sharing plan can be combined with a defined benefit plan to maximize annual contributions. Total contributions can be $60,000 to $200,000 or more. We provide more information about them on our website www.definedbenefitplan.com.