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    Am I too early (or too late) to implement my retirement plan?

    It's time to get an expert on opinion on how to save for your retirement.


    An example is a dental practice with four or five employees including the owner. The owner is the only key person. That dentist is in his or her sixties or late fifties. The other employees are about thirty years old or younger. The deductible retirement plan contribution can be over $175,000 with the owner receiving about 85 percent.

    Read more: 3 non-financial ways to prepare for retirement

    This is a sophisticated retirement plan and requires well thought, complex writing and implementation by those who understand how to do it. It can be combined with a 401k and profit sharing plan. In this way, the owner and other employees can each defer $18,000, if less than fifty years old, and $24,000 for the owner if fifty or older.

    There is also an additional employer contribution available. Since the year is just beginning, it is a good time for a dental practice with consistent income to confer with an experienced dental CPA to begin to learn more about defined benefit plans and their attributes. The importance of the terminology included and experience of those involved with the input of the documents cannot be stressed enough.

    Watch: The dentist's retirement number explained in 7 minutes

    Other retirement plan options and their deductibility

    For younger dentists, a 401k/profit sharing plan is an excellent choice. This year, $54,000 can be contributed on behalf of a younger dentist who would not qualify for the larger defined benefit plan contribution.

    Other considerations are that older employees would receive large amounts in the defined benefit plan, so the younger dentist would not receive the best amount available as a percentage of the total practice contribution.

    Talk to an expert, and use this time for analysis and discussion

    Since it is the beginning of the year, there is plenty of time to discuss the attributes of a retirement plan with someone who understands what is best for the dentist. This is a good month for the dentist to plan for his or her future with plenty of time to decide what course to take.

    Bruce Bryen, CPA, CVA
    Bruce Bryen is a certified public accountant with over 40 years of experience and is a part of RKG Tax & Business Services LLP, an ...


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