Tax Strategies for Doctors & Dentists

30th Aug 2017

Dedicated Defined Benefit Services | Physicians

How to Make Your Doctor Listen

Doctors consistently earn high incomes but often shy away from Financial Advisors, preferring to manage their own assets. However, with their high incomes also come high tax liabilities. When advisors approach doctors with tax strategies that can build their retirement wealth quickly and allow them to retire earlier, they are all ears.

Large Tax Savings, Year After Year

Each year over 20% of the Defined Benefit and Cash Balance plans we open are for independent physicians and small medical or dental practices. Many medical professionals come to us directly, without a financial advisor. Do you know doctors who would appreciate making large deductible contributions each year to an upscale retirement plan? Here are some tips for finding the physicians in your community:

PROSPECTING FOR PHYSICIANS

DEFINED BENEFIT PLAN FOR PHYSICIANS

ADVANTAGES OF DEFINED BENEFIT AND CASH BALANCE PLANS FOR PHYSICIANS  

  1. These IRS-approved qualified plans provide for the largest annual contributions to retirement plans, often exceeding $150,000 annually on behalf of the physician.
  2. All contributions and fees for these plans are tax deductible in the year they are paid.
  3. The older the physician, generally, the higher the contribution. Most physicians have school debt when they start working and require significant investment to set up a practice. As their practices mature and they are older – 45+ – they have the cash flow to support high retirement contributions. Starting at age 52, a physician who pays himself $270,000 in W-2 income from his C-Corporation can accumulate $2.6 million tax deferred in 10 years.

Contribution Chart

Free Retirement Plan Illustrations

Proposal ImageNot sure if your client qualifies? Run an estimate yourself online and then give us a call. We can refine it for you and help you talk your clients through it.

Try Our Instant Defined Benefit Calculator

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ADDITIONAL MARKETING RESOURCES

PowerPoint Presentation for Physicians
Present to medical professionals in your community

Illustration Request Form
Provide info for a customized illustration

Sample Cash Balance Plan Illustration
See how much a physician with employees can contribute

5-Step Sales Plan for Physicians
Easy sales process for opening DB or Cash Balance Plans

DEFINED BENEFIT OR CASH BALANCE PLANS?

Traditional defined benefit plans, like OnePersonPlus® work best for the solo practitioner or doctor with spouse or family practices. OnePersonPlus® Defined Benefit Plans also work well for medical practices that employ excludable workers, such as part-time employees and union employees.

When a medical practice includes common law employees, we recommend our OwnersPlus™ Retirement Program, which combines a Cash Balance Plan with a Safe Harbor 401(k)/Profit Sharing Plan. This is a great program for small practices such as Audiologists, Pediatricians, Pain Management Clinics, Orthopedic practices, Oral Surgeons, etc. Depending on several factors, such as the ages of the doctors and employees, often more than 90% of the total contribution can be for the owners’ retirement. Learn More

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LEARN MORE

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