How To Determine When To Call A Dental Retirement Plan Administrator?
Do you provide your practice's staff with a SIMPLE IRA or Safe Harbor 401(k) plan? Well, time's running out to make changes to your existing plan or establish a new one. The deadline to make changes or establish your dental practice's retirement plan is Oct. 1, so if you haven't already, consider touching base with your dental retirement plan services team. Not only will they help you meet the deadline, they can take a look at your existing plan to make sure it has been optimized to deliver maximum results.
Have you taken the time to really understand the value a great retirement plan design can be for your practice? Here are six reasons why you may want to pick up the phone and call your retirement professional as soon as possible.
You have no retirement plan at all. Offering your staff a retirement plan is more than just a great recruitment tool; it's an excellent way to make your dental practice's profits go further. Check out Retirement Plan Design: One Size Does Not Fit All for more insight into how a retirement plan can help bolster your practice's growth strategy.
You have a SEP Plan with more than two employees. If you haven't made time to speak with a dental retirement plan specialist recently to make sure that your plan still addresses your practice's unique needs, there's a chance you are missing out on a more cost-effective solution. Your dental retirement plan team can quickly run some illustrative numbers to compare your SEP against a 401(k) plan to reveal whether a better option exists for your business.
You are a business owner who is able to maximize deferrals every year with a SIMPLE IRA. If so, it may be time to consider a safe harbor 401(k) plan in 2016 for additional tax deferral. For more insight into how this option can work for you, take a look at Safe Harbor 401(k) Plans Provide Smooth Sailing.
You have a 401(k) but receive corrective distributions every year. You may be missing out on a retirement plan design that can not only alleviate this problem, but can help you maximize the benefits your practice receives for being active participants in your staff's retirement strategy. Access Safe Harbor FAQ here.
You maximize deferrals every year under your Safe Harbor 401(k) plan but offer no profit sharing option. A better plan design for dental practice owners in this situation might be to maximize profit sharing contributions while limiting the amount that has to be provided to staff. For example, cross-tested profit sharing plans may save you money if your practice's staff consists primarily of younger employees.
You are maxing out your profit sharing plan every year. It's time to add a cash balance option to your existing retirement plan. This is a great option for practice owners in this position, because it allows for much higher employer contribution deductibles for owners. Click here to learn more about how these plans can help your business.
Take control of your retirement plan today. Email dental retirement plan expert to find out what you have been missing.
This article was originally published on Dear Drebit – Rea & Associate's official blog. Bright Dental CPAs is the dental services division of Rea & Associates.
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