Choosing the right plan
You have goals, resources, and employees that are unique to your practice. Our Retirement Program Specialists will walk you through our plan options to help you choose the one that is most appropriate for you.
The Right Plan
Assess your
practice’s status
The first step in the process is to select which type of plan you and your practice need. No two dental practices are the same, and no two retirement plans are the same, either.
New dental practice
If you’re establishing a new practice, consider setting up a 401(k) plan to provide structured retirement benefits for yourself and your employees.
Established or nearing retirement
For established practices or those nearing retirement, an IRA might offer more flexibility and individualized investment options.
High-income practices seeking maximum contributions
If your practice generates significant income and you’re looking to maximize tax-deferred savings, a Cash Balance Plan (CBP) can allow for higher contribution limits and structured employer-funded benefits.
Our Plans
401(k) Plans
Employer-Sponsored: Designed for businesses to offer retirement savings to employees.
Higher Contribution Limits: Allows for more substantial annual savings.
Employer Contributions: Employers can match a portion of employee contributions.
IRA Plans
Individually Established: Set up by individuals, not tied to employer offerings.
Lower Contribution Limits: Suitable for additional retirement savings.
Tax Advantages: Options for tax-deductible contributions (Traditional IRA) or tax-free withdrawals (Roth IRA).
Cash Balance Plans
Defined Benefit Structure: A pension-like plan with employer contributions and guaranteed growth.
Significantly Higher Contribution Limits: Ideal for high-income dentists looking to maximize retirement savings.
Requires an Actuary: Plans require professional actuarial oversight to maintain compliance.
Your retirement goals
Growth and expansion
If planning to grow your practice and hire staff, a 401(k) or Cash Balance Plan can be an attractive benefit for recruitment and retention.
Maximizing tax-deferred savings
If you’re seeking to contribute more than a 401(k) allows, a CBP offers the highest tax-deductible contribution limits.
Simplified savings
If seeking straightforward, personal retirement savings without employer involvement, an IRA may be appropriate.
Tax implications
401(k)
Contributions reduce taxable income in the contribution year; taxes are paid upon withdrawal.
Cash Balance Plans
Employer contributions lower taxable income while ensuring structured retirement benefits with tax-deferred growth.
Traditional IRA
Contributions may be tax-deductible, with taxes due upon withdrawal.
Roth IRA
Contributions are made with after-tax dollars; withdrawals are tax-free in retirement.
Still unsure?
Choosing the right plan depends on your unique financial situation and retirement objectives. Consult with a financial advisor to determine the most suitable option for you and your practice.
Ready to work toward your future?