Why Dentists Should Have (and Max!) a 401(k) Profit Sharing Plan

Nate Williams Investments, Practice Management Leave a Comment

For years we have been advising clients to establish and make the maximum contribution to a Safe Harbor 401(k) Profit Sharing plan. Of course this advice is always tailored to each client’s specific circumstances. Most of our clients have heard this advice enough times from several different sources, that they readily agree to get on board. Recently, however, we were asked to speak at a dental society meeting to a group of 40 dentists and decided to quantify the effects of having a 401k or not. Some of the general benefits of having a 401k include: The ability to setup an automatic savings plan (this is like “auto-flossing” while you sleep). The ability to get a current-year tax deduction at a time when we reasonably think you’re in your high earning and therefore high tax bracket years. The ability to allow the money to grow tax-deferred, meaning no tax on …

Nate WilliamsWhy Dentists Should Have (and Max!) a 401(k) Profit Sharing Plan