Urgent Tax Need for Emergency Room Doctor
26th Oct 2017
An emergency room (ER) doctor in South Carolina who started her own S-corp several years ago is married to a senior-level engineer whose high compensation provides for all their cash flow needs. The ER physician, age 47, wants to save as much of her income as possible. Her W-2 income has averaged $185,000 over the past 3 years and she expects to take the same amount in 2017. We designed her defined benefit plan with an annual contribution of $152,500 which will reduce her tax liability by $70,000 each year, assuming a combined federal and state income tax rate of 38%.
At age 62, if she sticks with the retirement plan, the ER doctor will have accumulated $2.4 Million which can be rolled into an IRA.
This defined benefit plan also works for other medical practitioners such as dentists, chiropractors, optometrists, medical consultants and other professions in the medical field. For more information on defined benefit plans for doctors, dentists and small medical practices, check out our web page.