
Tilting the Balance in Your Favor
We’ve written about investing and planning for retirement since this column’s 2019 debut. One topic we haven’t addressed is the Cash Balance Plan. Under the right circumstances, there’s no better strategy for veterinary practice owners who want to accelerate their retirement savings and substantially reduce income taxes.
Ideally, a Cash Balance Plan syncs with a Safe Harbor 401(k) profit-sharing plan. Unlike a traditional defined benefit plan, a Cash Balance Plan has the look and feel of a 401(k) program, where each participant has an account that grows each year through contributions and interest credits.
Let’s first review the alternatives to see how a Cash Balance Plan fits into the retirement plan landscape. Most practices begin with a SIMPLE IRA or Safe Harbor 401(k).
Learn more in our latest article in Today’s Veterinary Business. Click here to read it.