Anesthesiologist Triples Retirement Savings

11th Dec 2017

client of the week: anthesiologist with patient

An anesthesiologist, age 59, who was working as part of a group of 15 other anesthesiologists at a medical center in California, decided to become an independent physician in 2017 for one reason: to make up for lost time in saving for retirement.

Under the company’s 401(k) plan, the anesthesiologist was limited to $59,000 in retirement plan savings last year no matter how much she earned. The physician, who is now an independent contractor, opened a defined benefit pension plan for 2017 and will contribute $208,300 annually for five years. Her estimated annual tax savings will be $79,000, assuming a 38% combined federal and state tax rate. In five years, she will accumulate $1.4 million in her defined benefit retirement plan. When she retires, the doctor will roll the assets into an IRA where they will continue to grow tax-deferred until withdrawn.

Are you a medical doctor or medical professional who is looking for a small business retirement plan? A defined benefit plan may be a good option for you.

Dedicated DB@ DedicatedDB

3 Retirement Planning Blunders That May Cost You a Fortune via @motleyfool #retirementplanning #moneymistakeshttps://t.co/fBUAThuESZ

9:44 PM 24 January 2020

Dedicated DB@ DedicatedDB

The Top 10 Mistakes That Keep Women Entrepreneurs From Scaling to $1 Million via @entrepreneur #womeninbusinesshttps://t.co/Nw8k8Hq4T9

8:40 PM 24 January 2020

Dedicated DB@ DedicatedDB

When Does It Make Sense to Quit Your Corporate Job & Become an Independent Consultant? #smallbusinesshttps://t.co/5r647zhSi1

5:43 PM 24 January 2020

Dedicated DB@ DedicatedDB

4 Ways the SECURE Act Impacts Your Retirement Planning Now via @forbes @BarryGlassman #SECUREActhttps://t.co/2xlyvUEHAP

4:23 PM 24 January 2020

Dedicated DB@ DedicatedDB

Entrepreneurs Should Consider Doing These 3 Things Before Building a Company With an Exit Strategy via @inchttps://t.co/MIQyaJHg5A

1:16 AM 24 January 2020

Dedicated DB@ DedicatedDB

What are the key differences between Defined Benefit vs. Defined Contribution plans? The favorable tax savings of D… https://t.co/qc4B2wvy7c

12:13 AM 24 January 2020

Estimate contribution and deduction with our DB calculator Try it now