What are the Best Retirement Plans for Dentists?

Being a dentist, have you ever thought about your retirement plan? What will you do, and how can you ensure financial stability after retiring from your job? If you have not thought about them yet, you should consider enrolling in a retirement plan, as this will provide you with financial resilience at the time of your need.

Unfortunately, when it comes to retirement plans, dentists often get stuck with the traditional 401(k) and IRA schemes. But, several other tax benefit plans offer monetary assurance after the retirement of a dentist. Therefore, we have noted down this blog to inform you about the best retirement schemes for dentists.

The best retirement schemes for dentists

Below we have penned down various best retirement plans for dentists. You can go through the options and select the best tax-saving option to secure your old age.

• Roth 401(k)

Like the Roth IRA, Roth 401(k) gets taxed the same way. While the funds in the pension account grow tax-free, the contributor can even withdraw a certain amount without paying any taxes. Thus, Roth 401(k) is the best tax-saving retirement plan for dentists.

• Safe Harbor 401(k)

If you are a dentist with minimal staff, Safe Harbor 401(k) will be the best pension plan. Plus, you can even avoid bearing compliance costs with it.

• Solo 401(k)

Supposedly, you run a dental chamber single-handedly and have no employees working under you. In this scenario, the solo 401(k) can be the best retirement plan for dentists. While the scheme offers you the same contribution, it also works as a traditional tax savings plan 401(k).

Moreover, you do not need to juggle with employees’ 401(k) accounts. Even if a dentist’s spouse is their only employee, solo 401(k) covers the person. Therefore, you will receive massive benefits in the long tenure through solo 401(k) without carrying high maintenance costs.

• SIMPLE IRA

Just like 401(k), the employer’s contribution is mandatory in the case of the SIMPLE IRA. But, for the employee, the contribution is optional. Also, the contribution limit is almost $12500 as per the latest record. So, if you are involved in dental practices, you can choose SIMPLE IRA as it is the Best Retirement Plan for physicians.

• SEP IRA

According to the SEP plan, only the employer can contribute to the retirement savings scheme. While the employer’s contribution gets vested from the first day, one can even contribute to an employee’s SEP IRA even after the worker turns 70½.

The same rule applies to an individual’s own SEP-IRA too. Plus, you can even supplement this scheme with another retirement plan. Since a dentist can contribute up to 25% of the individual’s net earnings, it is the Best Retirement Plan for dental physicians.

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