Business Owner With Employees
Medical Practice with Employees
Objective: Maximize Owner Contributions & Tax Savings, while Controlling Employee Benefit Cost
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Profile: Physician, 56, Wages $350k, Sell Practice in 8 Years 4 Employees Wages $35 - $45k
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Solution: Cash Balance Plan + 401(k) Profit Sharing Plan for 8 Years
Case Studies: Owners establish a Cash Balance plan and set a contribution amount they want to fund each year, within IRS limits, based on age, income, and years in business. Owners also open a Safe Harbor 401(k)/Profit Sharing plan for all eligible employees, including themselves, and make contributions of 5-7.5% on employees’ behalf. **Assumes estimated 31% federal and 6% state tax rates. Examples are based on specific assumptions and used for illustration only.
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