Retirement Plans for Professional Practices & Small Business Owners
A high owner contribution, IRS approved, fully tax-deductible accelerated retirement plan
who Is this plan for?
Profitable small business owners, partnerships & professional practices
Businesses with 1-10 employees
Owners who want to make larger tax-deductible contributions than currently allowed in a SEP-IRA or 401(k) plan
Businesses with cash flow that will allow owners to make consistent contributions for the next 5 or 10 years
Dental & medical practices, family businesses, franchisees
What exactly is this plan?
An IRS-approved Cash Balance plan with a Safe Harbor 401(k)/Profit Sharing Plan. Combining these 2 plans potentially provides for the highest allowable contributions for owners (currently up to $200,000 for owners)
Contributions for owners often exceed 90% of the total contribution amount
Employee contribution costs are controlled while still passing all compliance testing
All contributions are fully tax-deductible
Investments grow tax-deferred
You and your financial advisor choose the right investments for you
Upon retirement or plan termination balances can be rolled into an IRA where they continue to grow tax-deferred until withdrawal
How does it help me?
You may be able to accumulate $1 Million - $2.6 Million in 5-10 years
Family businesses can use high contributions for senior members as part of estate and succession plans
Older owners of highly profitable small businesses can catch up on retirement savings
Business owners who have outgrown SEP or SIMPLE plans can contribute more for themselves without increasing employee contributions
Reduces income to allow certain pass-through entities to take potentially up to 20% deduction on qualified business income
Medical Specialty Practice with 1-10 Employees
Dr. Robert Curtis has a thriving Internal Medicine practice. He wants to maximize his own contributions and tax savings, while controlling the cost of benefits for his employees. Here’s an example of what Dr. Curtis’ 2022 retirement plan contributions for his medical practice could be.