The Dose Episode 19 – Making the Most of Your Practice’s Retirement Plan

We’re back with another episode of The Dose. Today I have another returning guest, Josh Kegley with Retirement Plan Consultants. You may remember Josh from one of our earlier episodes where we talked pretty high level about the retirement plan space and the evolution that practice owners go through as it pertains to the various vehicles that they can utilize to build wealth inside of a retirement plan.

Today, we get into the weeds on how to utilize a qualified retirement plan like a 401k to maximize the benefit to the practice owner. We start out discussing how changing the match to a safe harbor is the easiest way to allow practice owners to maximize their own contributions as well as the nuances of the safe harbor match.

We then dive into the details on the other side of the qualified plan, which is the profit sharing plan. We discuss the various different types of profit sharing plans, including:

• Integrated
• Cross-tested (new comparability)
• Age weighted

More importantly, we discuss the characteristics of a practice that would be a good fit for each of the plans mentioned above as well as some of the different questions to consider when determining if, when, and how much of a profit sharing contribution to make.

We also touch on the impact that profit sharing contributions have on qualifying for the new Section 199A deduction (commonly called the “QBI deduction”).

And be sure to stick around to the end, where I share a specific example of a client situation where the client chose to make the profit sharing contribution, even though it “cost” him more than he would have paid in taxes and why he decided to make that decision.

With that introduction, I hope you enjoy this episode of “The Dose” with Josh Kegley.