News

Behind In Your Retirement Saving? Consider The Custom-Built Tax Strategy Plan For Enhanced Retirement Savings

Behind In Your Retirement Saving? Consider The Custom-Built Tax Strategy Plan For Enhanced Retirement Savings
by David Podell

For dentists who might be a bit behind in their retirement savings, there is a little-known option called a custom-built tax strategy plan, which provides an accelerated profit-sharing framework that surpasses a regular 401k retirement account with a defined benefit plan or pension. Find out if it's right for you.

As a dental practice owner, it’s easy to take your latest earnings and plow them right back into your practice. It makes sense—spend money now to make money later, and capitalize on the gains before the moment passes. Small business owners are masters at keeping an eye on their bottom lines because their companies are their livelihood, and more often than not, their life’s work.

The responsibility that comes with that burden encourages vigilance and surviving for the next day. But eventually, all practice owners will retire, whether they want to or not. To prepare for that day, there is strategy available that can boost retirement savings using an intricate but not very well-known process.

While a 401k is a godsend to those who plan ahead for retirement and can make steady contributions, many small business owners don’t have that luxury, especially early in their careers. If the equipment falls apart, an employee is injured, or anything else at all threatens the company, pulling capital out of a 401k may not be an option. Also, with a relatively small cap on maximum investment contributions, a regular 401k may not cut it when planning decades of retirement spending and medical bills. How can dentists make up that gap in a short period of time?

ENTER THE CUSTOM-BUILT TAX STRATEGY PLAN: This plan provides an accelerated profit-sharing framework that surpasses a regular 401k retirement account with a defined benefit plan or pension. With enhanced tax deduction potential, a business owner may be able to achieve 10 or 20 times the contribution limits of a regular 401k, which allows a small business owner to race to the finish line of retirement with every advantage he or she can get. This type of a plan even allows for employees to participate in the 401k plan, going as far as granting access to high-value employees who can share in some of the savings.

The advantages don’t stop there.

Read full article on Dentistry iQ.