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Employer 401(k) match question

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  • Employer 401(k) match question

    Have any W2 physicians without an employer 401(k) match successfully lobbied your employer to pay $36k less in exchange for a $36k employer match? Is this possible? More specifically, could this be done for 1 physician without adding a match for everyone (if the employer was highly motivated to retain this MD)?

  • #2
    I'm not a physician but am currently working with a client to see if we can negotiate with his employer for this. The problem is that, yes, all other qualified employees would have to participate and this employer doesn't even have a plan in place yet.

    A non-qualified plan would be more appropriate for your situation but the cost and complication would almost certainly not appeal to an employer that hasn't even reached the point of ponying up for an employer match.

    Our short-term solution is filling out the backdoor Roth IRAs and saving in a taxable account.
    Working to protect good doctors from bad advisors. Fox & Co CPAs, Fox & Co Wealth Mgmt. 270-247-6087

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    • #3
      There are a lot of rules.
      Contributions from lower earning employees have to formula match so called highly compensated employees.

      Basically I think the answer to what you are asking whether it can be for one is highly unlikely.

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      • #4




        Have any W2 physicians without an employer 401(k) match successfully lobbied your employer to pay $36k less in exchange for a $36k employer match? Is this possible? More specifically, could this be done for 1 physician without adding a match for everyone (if the employer was highly motivated to retain this MD)?
        Click to expand...


        You can't provide different benefits to different plan participants.  The same benefits have to be provided to all.  That said, if everyone gets together, they can try to lobby to get a match.  The cost can be high for the employer though, unless it is a tiny employer and you can negotiate a deal with them.  However, if they give a match, it would have to be to everyone, so I doubt they would do that.

        EDIT: Depending on the size of the group, profit sharing can also come into play.  However, it will all depend on the ratio of partners to non-HCE staff.  But a plan without matching is an insult of the first order.  What's the purpose of doing a plan if there is not even a match?  Only very cheap employers do that who don't care very much about their staff.

        EDIT: Some groups simply exclude non-partner docs from matching/profit sharing.  That's a different story.  This can be negotiated.
        Kon Litovsky, Principal, Litovsky Asset Management | [email protected] | 401k and Cash Balance plans for solo and group practices, fixed/flat fee, no AUM fees

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