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

“Much Ado About Nothing” (the over-hyped Section 179)

Nate Williams Accounting, Taxes Leave a Comment

Here’s the summary; do these things and you don’t have to read further: Don’t ever spend money just for a tax deduction Buy equipment in your practice when it makes business sense to do so; ignore taxes in this analysis When your equipment rep starts talking about section 179, smile and show him the door Set a goal to pay as much in taxes as you can (What!? Did my accountant just tell me I should pay MORE taxes??) December has to be the best month by far to be a dental equipment sales rep. They must love walking into doctors’ offices, showing off their fancy toys, and then saying those magic numbers that make every dentists’ ears ring: 1 – 7 – 9. When that happens, the dentist wisely calls his run-of-the-mill accountant who thinks, ‘crap, I have no idea how much this guy is going to owe in …

Nate Williams“Much Ado About Nothing” (the over-hyped Section 179)