PER Madelin simulator (self-employed): retirement and profit deduction

Simulate your Madelin PER

The simulator estimates your retirement savings and tax benefits based on your marginal tax bracket. Your data is neither stored nor transmitted.

Why does the self-employed have leverage that employees do not?

The self-employed worker faces a unique tax reality: their profit is fully taxable, without the safety net of the 10% tax allowance available to salaried employees, and their tax years are irregular—an exceptional year can suddenly propel them into the 45% tax bracket. The Madelin retirement savings plan (PER Madelin) was designed to absorb precisely these peaks: it allows a substantial portion of taxable profit to be offset in the year when it is most expensive.

The self-employed tax (TNS) cap is not a mere technical detail: it fundamentally alters the tool. While salaried employees are capped at 10% of their income, high-profit individuals can deduct tens of thousands of euros because the calculation adds 15% to the portion of profit between 1 and 8 times the annual social security ceiling (PASS). The higher the profit, the greater the deduction capacity—the exact opposite of the logic applied to salaried employees.

But this power backfires on the poorly advised objective. The old Madelin plan required contributions every year, even in lean years; the PER reform removed this constraint. The self-employed individual can now contribute generously in good years and reduce their contributions in others. Without proper guidance, they squander their savings in lean years and miss out on the boom years.

The 3 levers that your accountant cannot control alone

Lever 1: Align the payment with the year of exceptional profit

A record profit year is also one where your final tax bracket reaches 41 or 45 (%). This is the year where every euro deducted saves you the most. The Madelin ceiling, calculated on this high profit, is itself at its highest: the window is doubly favorable. Contributing a large sum in that year, rather than spreading it out evenly, can transform your tax bill. However, it's essential to anticipate the result before the end of the fiscal year—this is the joint work of the advisor and the accountant; neither can be done without the other.

Lever 2: Arbitrate between the Madelin framework and the voluntary contributions framework

The PER (Retirement Savings Plan) offers two deduction options for the self-employed: the Madelin "categorical" limit, calculated on profit, and the standard limit for voluntary contributions, calculated on income. These two are not applied in the same way and do not have the same carry-forward period. Optimizing your contributions means knowing which one to maximize first, depending on the composition of your income—management fees, dividends, and non-commercial profits (BNC). An error in allocation can result in losing part of the expected deduction.

Lever 3: Align the P/E ratio with cash outflows and dividends

For a self-employed manager, the PER (Retirement Savings Plan) shouldn't be considered in isolation: it's part of the overall balance between salary, dividends, and retirement savings. Contributing to the PER reduces taxable income and therefore, depending on the individual's status, the base for social security contributions. However, this logic must be considered in conjunction with your distribution strategy and the tax bracket differential upon withdrawal. It's a multi-layered calculation that the stated deduction, taken in isolation, never fully reflects.

Case study: Maître Vasseur, 52 years old, self-employed dental surgeon in Nantes

Dr. Vasseur, a self-employed professional (BNC tax status), earns a profit of approximately €180,000 and is in the 45 % marginal tax bracket. He decides to contribute €25,000 to his Madelin retirement savings plan (PER Madelin) during a year of high profit. Here is the effect of the contribution:

The €25,000 payment actually costs Dr. Vasseur only €13,750: the state finances the remaining €11,250 through the tax deduction, in the very year his tax bracket is at its highest. The Madelin portion of his retirement savings—based on a profit of €180,000—would have allowed him to deduct even more. Over a career, by concentrating these payments in profitable years, the cumulative savings amount to tens of thousands of euros.

The lesson is specific to the objectives: it's not the amount paid that creates tax efficiency, but the timing of the payment. Paying uniformly each year, as required by the old Madelin plan, would have diluted the advantage. Year-by-year management, based on actual profit, makes all the difference.

The TNS deduction is a weapon — provided you aim

This simulator calculates your retirement capital and tax savings on the deductible portion. But optimizing your self-employed pension plan isn't just about the amount: it's about the timing of your contributions, the allocation between deductible investment options, how they align with your salary and dividends, and how you manage your withdrawal. Making these decisions at the right time is far more important than choosing the investment vehicle.

Balmont Conseil is an objective wealth management firm, a member of ANACOFI, with no ties to any bank or insurance company. This objectivity allows us to select the right contract from across the market and work closely with your accountant, solely in your best interest—not that of a network. Let's make an appointment to structure your retirement goal strategy.

Frequently Asked Questions

What is the maximum deduction for a self-employed person on the PER Madelin plan?

The self-employed (TNS) limit is significantly higher than that of salaried employees: 10% of the annual Social Security ceiling (PASS), plus 15% of the portion of your profit between 1 and 8 times the PASS. In practical terms, the higher your profit, the greater your deduction capacity—a high-income earner can deduct tens of thousands of euros per year.

Am I obliged to pay in every year like with the old Madelin plan?

No, and that's the major contribution of the PER reform. The old Madelin contract required regular payments or you'd lose your seniority. The PER has removed this constraint: you can freely adjust your contributions, making larger payments in good years and reducing them in others. This flexibility is precisely what makes managing your contributions so advantageous for those with irregular income.

Does the payment also reduce my social security contributions?

The Madelin retirement savings plan (PER Madelin) deduction is applied to taxable profit, thus reducing your income tax. Depending on your status and the nature of your income, the impact on your social security contributions will vary. This is a point to analyze carefully with your advisor and accountant, as it is part of the overall salary/dividend/retirement savings balance specific to self-employed business owners.

What happens during the retirement process?

As with the individual retirement savings plan (PER), you can withdraw your funds as a lump sum, an annuity, or a combination of both. The portion corresponding to your deducted contributions is added back to your income tax; gains are taxed at a flat rate of 30%. Early withdrawal for the purchase of a primary residence remains possible. The benefit lies in the difference between your current income bracket and your retirement income bracket.

What is the difference between Balmont Conseil and a bank advisor?

Balmont Conseil is a firm, a member of ANACOFI, with no capital ties to any bank or insurer. We select the contract from across the market and coordinate your strategy with your accountant, acting solely in your best interest. While a bank advisor or insurance agent distributes the product through their network, we develop a comprehensive tax optimization plan tailored to your specific objective, including the payment schedule.