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Retirement Plan Guide
How Doctors Can Contribute More Than a 401(k) Allows
Physicians and practice owners often max out a 401(k) early in the year and find there is nowhere else to put pre-tax dollars. A cash balance plan sits alongside the 401(k) and raises the annual ceiling substantially.
This guide explains how the two plans work together, what the combination looks like for a physician earning $600,000, who needs to be involved to set one up, and the trade-offs worth weighing first. Download your free copy below.
Sneak Peek
What's Inside the Guide
A cash balance plan is a type of defined benefit plan that lets a business owner contribute far more per year than a 401(k) allows on its own. Contributions are set by an actuary based on age and income, which is why the ceiling rises sharply for owners over 40. Pairing one with an existing 401(k) is often called a combination plan.
The guide covers:
- How each plan works and what changes when they run together
- A worked example for a 50-year-old physician in private practice earning $600,000, with the numbers side by side against alternative strategies
- The pros and cons, including mandatory annual funding and higher administrative cost
- Key questions to ask before deciding whether the structure fits
- How to implement it, including who is involved and what changes if you already have a 401(k)
