Broker Check

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