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Small Business Retirement Plans - 3-part series

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  • Small Business Retirement Plans - 3-part series

    I just finished uploading the 3rd of a 3-day series of blog posts discussing the 3 most common small-business retirement plans used by doctors - both full-time and for moonlighting income. The purpose of articles is to summarize the highlights of each plan and to give you a simple checklist of when a particular plan is appropriate for you. Depending upon where you are in your career and the timing, more than 1 plan can be implemented to get the most "bang for the buck".

    If you are interested, I recommend you start with:

    If you have any questions, I'll be happy to answer them.
    Working to protect good doctors from bad advisors. Fox & Co CPAs, Fox & Co Wealth Mgmt. 270-247-6087

  • #2
    what are the average fees of a 401k?

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    • #3




      what are the average fees of a 401k?
      Click to expand...


      Are you asking what the average fees are to manage a 401k?
      Working to protect good doctors from bad advisors. Fox & Co CPAs, Fox & Co Wealth Mgmt. 270-247-6087

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      • #4
        All costs associated with a 401k.  including contributions for employees when the owner maxes out, AUM fees, record keeping, and anything else I'm forgetting.  I do a SEP now for my small office (5 employees + me) and love the transparent costs (25% of eligible employee salary - right now that is just one employee) and no other fees.  Eventually I'll have to do a 401k when more of my employees become eligible for the SEP and I want to do backdoor roths as well but can't do it with a large SEP account.

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        • #5
          The 401k will be less expensive when you have more employees who qualify because you won't be responsible for 100% of funding for employees - 25% of pay is a pretty big kill. As for total costs, no way to give an estimate, so many variable factors. Of course, one cost you'll have with a 401k that you won't have with a SEP is compliance - annual calculations, employee reports and government reporting.
          Working to protect good doctors from bad advisors. Fox & Co CPAs, Fox & Co Wealth Mgmt. 270-247-6087

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          • #6
            Thanks for posting this, Johanna.  My wife just set up her dental practice and has two employees.  I am wondering if you can help me determine if she can contribute to a SIMPLE IRA.  The sticking point is I am not sure we have earned income.  She is set up as a LLC and makes enough to make "draws" to cover living expenses.  However, because of various deductions from a newly established practice, the LLC will show a loss for the year.  Because of this, does that mean she doesn't have earned income and therefore cannot contribute the $12500 to the IRA?  Or, does she have earned income because she is making draws from the business for living expense.  Thanks in advance.

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            • #7




              Thanks for posting this, Johanna.  My wife just set up her dental practice and has two employees.  I am wondering if you can help me determine if she can contribute to a SIMPLE IRA.  The sticking point is I am not sure we have earned income.  She is set up as a LLC and makes enough to make “draws” to cover living expenses.  However, because of various deductions from a newly established practice, the LLC will show a loss for the year.  Because of this, does that mean she doesn’t have earned income and therefore cannot contribute the $12500 to the IRA?  Or, does she have earned income because she is making draws from the business for living expense.  Thanks in advance.
              Click to expand...


              The withdrawals do not count as expenses, therefore, it sounds as if she might have enough income to contribute to a SIMPLE IRA. I'm glad you liked the articles.
              Working to protect good doctors from bad advisors. Fox & Co CPAs, Fox & Co Wealth Mgmt. 270-247-6087

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