Medical Practice 401(k) Plan
Medical Practice

Industry

401k for hospitals
<10

Number of Employees

401k for medical practices
3

Number of Locations

Success Story: Tax Advantages

Tax Savings for High Net-Worth Business Owners

401k options for hospitals
140%

PRE-TAX SAVINGS**

401k for doctors

401(k) Plan Goal

Reduce the tax burden and increase the retirement savings for the owners of a successful medical practice.

Retirement plan hospitals

Opportunity

The owners of a highly profitable private medical practice were concerned about the amount of taxes they were paying and their options for retirement saving. Being high-income earners, the doctors had significant saving opportunities but like so many others, were limited in how much they could save pre-tax.

Case study 401k

Our Solution:

Our Retirement Plan Consultant met with the medical practice owners and reviewed different plan options that would meet their tax and retirement savings goals. The doctors decided to add a Cash Balance Plan to their 401(k) Profit Sharing Plan. By adding a Cash Balance Plan, they could accelerate their personal retirement savings and decrease their income tax burden. Cash Balance Plans give business owners the chance to put away up to four times the tax-deferred money of a 401(k) plan alone.* This makes them an attractive option to small businesses whose business owners earn over $250,000 a year, whose business has a steady revenue, and who want to take advantage of an annual tax deduction of more than $53,000 a year (the maximum permitted through a 401(k) and profit sharing plan).

401k plan example

Results

After adding a Cash Balance Plan to a 401(k) plan, a business owner on average increases pre-tax retirement savings by 140%.**

*Based on 2016 contribution limits and assumes a 40% tax bracket, when this case study was published. Taxes are deferred and vary by state.

**As of 4/8/16, based on Fisher Investments data before and after adding a Cash Balance Plan.

SEC Regulatory Disclaimer: Case studies are selected based on how they illustrate common 401(k) plan goals. It is not known whether the clients approve or disapprove of Fisher Investments 401(k) Solutions or the services provided.

About Fisher Investments 401k
About Us

Fisher Investments 401(k) Solutions is committed to bringing unparalleled support to small and mid-size businesses and their employees through 401(k) retirement plan services.

Contact Us
Contact Us

5525 NW Fisher Creek Drive Camas, WA 98607

844-343-4015
info401k@fi.com

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