Dentistry iQ’s Zachary Kulsrud takes a look at accelerating retirement savings through a cash balance plan – a type of defined benefit plan that allows for more pre-tax retirement savings than 401(k) plans, along with additional benefits.
A growing number of dental practice owners find that retirement planning based on a 401(k) or profit-sharing plan alone is not giving them enough savings for retirement. While the maximum contribution in a 401(k) profit-sharing plan is $59,000 a year, contributions to cash balance plans can approach $250,000 a year for dentists who are near retirement. Meanwhile, Dentistry iQ’s Will Parrish outlines guidance for retirement planning, concluding that “Nothing can compare to a well-orchestrated financial plan that involves your attorney, tax advisor, and experienced financial advisor. Many dentists have all of the parts of a plan, but many are unsure how all those parts work together.
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