3 Reasons It’s Time to Review Your Existing Dental 401k Plan
Get the Most Out of Your Dental Retirement Plan
In past editions of Dental Insights , we discussed the benefits of starting up a 401k plan and the tax credits available to offset the start-up costs. Today, I will give you 3 key reasons why it’s time to review your existing 401k plan:
- You, as the owner dentist, are not able to defer the maximum in your 401k plan. In 2023, that’s $22,500 and if you are over the age of 50 you can add a catch-up contribution of $7,500 for a total of $30,000. This reduction would be told to you by your Third Party Administrator (TPA) due to testing limits.
- You are not getting at least 60% of the total practice annual profit sharing contribution.
- You do not currently have a Roth 401k option in your plan. Not a Roth IRA: a Roth 401k option.
And as a bonus, here is a fourth reason: you haven’t had your 401k plan fees (recordkeeper and TPA) reviewed in 1+ years.