Designer 401k+™ Case Studies
Single Owner Medical Practice
- Objective: Maximum contribution and tax deduction
- Profile: Medical Practice - one Physician, age 47, and spouse; 4 PAs, 21 employees. W-2 Income $230k, retirement age is 62.
- Solution: Designer 401k+TM
- Plan Design: Combination (CB), PSP/Aggregate Plan for 7 years and a PSP Plan to achieve 98% of total contribution to the plan
- Annual Contribution: $317,550
- Tax Savings at 37% tax bracket: $117,494
- Projected Retirement Accumulation: $2,714,770
- Aggregate Benefit: can allow up to $594,000 in tax-free distribution in retirement per participant
Single Owner W-2 and 1099 Income
- Objective: Maximum contribution and tax deduction
- Profile: Single Owner, age 41. W-2 Income $471k; 1099 Income $203,920; takes $50k W-2 salary from his LLC
- Solution: Designer 401k+TM
- Plan Design: Combination (CB), PSP/401k, Aggregate Plan for 7 years to eliminate taxation on 1099 income
- Annual Contribution: $134,833
- Tax Savings at 37% tax bracket: $49,888
- Projected Retirement Accumulation: $1,152,702
- Aggregate Benefit: can allow up to $594,000 in tax-free distribution in retirement per participant
Software Company 1/3 Partner & 2/3 Partner
- Objective: Maximum contribution and tax deduction
- Profile: 2 Partners, age 51 and 60; 4 employees. Plan is max front loaded, and annual contributions may be reduced to avoid early overfunding.
- Solution: Designer 401k+TM
- Plan Design: Combination (CB), PSP/Aggregate Plan for 5 years to achieve 98% of total contribution to the owners
- Annual Contribution: $1,002,350
- Tax Savings at 37% tax bracket: $370,870
- Projected Retirement Accumulation: $5,815,547
- Aggregate Benefit: can allow up to $594,000 in tax-free distribution in retirement per participant
Hospitalist 7 Partner Group with Employees
- Objective: Maximum contribution and tax deduction
- Profile: Medical Practice - 7 Partners between ages 43 and 61; 10 employees. W-2 Income $265k each partner.
- Solution: Designer 401k+TM
- Plan Design: Combination Defined Benefit (CB), PSP/Aggregate Plan for 10 years to achieve 98.6% of total contribution to the owners
- Annual Contribution: $1,456,265
- Tax Savings at 37% tax bracket: $538,818
- Projected Retirement Accumulation: $19,232,582
- Optional Double Up: $3,554,288
- Aggregate Benefit: can allow up to $594,000 in tax-free distribution in retirement per participant