Taxes are by far the biggest drain on most ER doctors’ wealth. We are currently working with an ER doctor to cut his 2016 tax bill by $77,000.
Many ER doctors who earn high income from self-employment are eligible to make very large, tax-deductible contributions to an IRS-approved retirement plan called a defined benefit plan. In many cases, they can contribute $100,000 or more annually—and thereby save $40,000+ in taxes every year while rapidly building a large retirement nest egg.
Our doctor is 50 years old and has 2016 Net Schedule C income of $304,000.
- He will establish a defined benefit plan into which he will make a tax-deductible contribution of $172,000.
- We will then also pair his DB plan with an Individual 401(k) Plan, permitting him to make an elective deferral contribution of $24,000 and an employer contribution of $6,800. (These contributions are also tax-deductible.)
- With total tax-deductible contributions of $202,800, he will save $77,064 in 2016 taxes (at an assumed tax rate of 38%).
Not only will our doctor save $77,000 in taxes this year, but he will save this amount in every year his defined benefit plan is active. These contributions will then reside in his defined benefit plan and will be free to grow tax-deferred for decades.
Could this be you? Do you have high income from self-employment and are currently paying a lot in taxes?
The deadline to establish a defined benefit plan to save on 2016 taxes is December 31st. However, it takes some time to get one set up. The time to begin is now.
Provide us with just the few pieces of information listed below and we will get back to you in 48 hours with a preliminary proposal that will outline how much in tax you could potentially save each year by establishing and contributing to a defined benefit plan.
- Business Entity Type (e.g. S-Corp, sole prop., LLC)
- Owner’s Annual Income
- Date Business Started
- Owner’s Age
- Number of Employees
You can use our Tax Savings Analysis Tool online here:
Or email your numbers directly to me at email@example.com .
Get started now. We want to help you save as much as you can on your taxes, while helping you quickly accumulate savings for your retirement.