Calculators
Model an S-corp salary, deductible retirement plan funding, remaining distributions, and estimated tax savings from annual revenue.
Increase in after-tax cash + retirement
Estimate only. Headline annual benefit is the difference between the planned and baseline totals for after-tax owner cash plus retirement. Retirement funding is retained wealth, not additional spendable cash, and tax-only savings remains separately disclosed. Employee 401(k) deferrals are withheld from and already included within gross W-2 wages; they are not additional company spending. Company-funded plan contributions, gross wages, employer payroll taxes, and remaining distributions cannot exceed annual revenue. The model multiplies the actuary-supplied pension target by the eligible owner count, then searches W-2 compensation for the maximum feasible employer retirement deduction after non-owner payroll and employer payroll taxes. It also models each owner's 401(k) deferral, catch-up, and profit sharing within the 2026 limits while reserving enough owner cash for employee-side payroll and modeled income taxes. After maximizing retirement funding, it selects the lowest W-2 candidate that supports the same retirement amount and treats remaining business profit as S-corp distributions; estimated tax savings are only a later tie-breaker. Its W-2 result is not a reasonable-compensation opinion. Owner + spouse assumes both spouses are the selected age, have eligible W-2 compensation, and file one married return. Two active partners assumes equal owner economics, the selected age for both, and two separate single-filer returns. This remains an S-corp model. It uses a blended high-tax state/local estimate and current modeled W-2 as a proxy for the prior-year Roth catch-up threshold. The entered pension amount must come from the plan actuary; pension funding, staff-plan testing, contribution deductibility, QBI, plan fees, and reasonable S-corp compensation require professional review. Retirement taxes are deferred. Sources: IRS 2026 retirement limits, IRS 2026 federal tax brackets, IRS 2026 401(k) catch-up limits, IRS FICA and Medicare rates, IRS Additional Medicare thresholds, IRS S-corp compensation guidance, IRS 2026 defined benefit mortality table, IRS defined benefit contribution guidance.
