A. Because a cash balance plan is a defined benefit plan, the maximum contribution amounts are based on current age. For example, a 45-year-old could potentially contribute approximately $153,000 per year, a 50-year-old can contribute approximately $196,000 per year and a 55-year-old can contribute approximately $253,000 per year. These amounts can increase as the participant gets older. They can also increase with cost-of-living adjustments to the limits.
