Many physicians worry that their current retirement plan does NOT meet their retirement savings goals.
Physicians, along with the retirement committee members, want to have larger tax deductions and accelerated retirement savings.
They are looking for a plan that’s more reliable, safe and has the potential to more than double their tax-deferred contribution amounts and drive down tax liability.
This is where a Profit-Sharing 401(k) plan with a Safe-Harbor Non-Elective option along with a Cash Balance Plan can help achieve their goals.
Here is an actual 401(k) plan design to take a look at. In this plan design we have a total of 174 employees, 56 partner physicians over 50 years of age, 58 non-partner physicians over 40 years of age, 10 nurse practitioners over 36 years of age and 12 staff members over 48 years of age. See chart.
With this plan design, physicians, along with the retirement committee members, would achieve their goals and have larger tax deductions with accelerated retirement savings. One more advantage to point out is that ALL of the contributions to the plan are creditor protected.
By the way, if your medical group is not this large, than this is the article for your practice What Business Owners Need To Know
Any retirement committee along with the physician partners would be more than happy with these results. Just imagine what this plan design would look like after having the plan in place for several years. Many of the doctors would see dramatic improvement in their retirement accounts, and this outstanding plan aids in physician retention, physician satisfaction and happier employees within the medical group as well.
If you belong to a large medical group and are asking yourself how can we upgrade our current retirement plan for these larger tax deductions and accelerated retirement savings? Let us show you how, contact us.