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Partners in the same practice rarely want the same thing. A custom plan lets each partner choose their own contribution, from $72,000 to $300,000+, and pay for their own share.
One plan. Different goals for every partner.
A free plan design for your partnership
In a group practice, partners often differ by 20 or 30 years in age and in how much they want to save. A one-size-fits-all plan forces everyone into the same contribution, which usually means the older partners can’t save enough and the younger ones are asked to save too much.
A custom design using a cash balance plan with individual benefit groups and new comparability profit sharing lets each partner pick a contribution level. The partnership agreement then allocates each partner’s contributions and share of staff cost to that partner, so nobody subsidizes anyone else.
| Partner | Age | Plan design | About how much goes in each year |
|---|---|---|---|
| Partner A | 62 | 401(k), profit sharing, and the maximum cash balance | About $416,000 |
| Partner B | 50 | 401(k), profit sharing, and a moderate cash balance credit | About $205,000 |
| Partner C | 38 | 401(k) and 6% profit sharing only | About $46,100 |
Hypothetical example for illustration only. Actual contributions are set by the plan’s actuary and depend on age, compensation, employees, and plan design. Assumes each partner earns at least $360,000.
From first call to first contribution, we handle the design, the math, and the compliance.
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We look at your income, age, staff census, and current plan to see what’s possible.
We layer your 401(k), profit sharing, and cash balance plan around your tax goals.
You get a clear illustration of your deduction, your savings, and your staff cost before you commit.
Plan documents, annual actuarial work, testing, and filings, handled every year.
See also cash balance plans for physicians and keeping employee costs low.
Michael, a successful business owner with no employees, wanted to maximize his retirement savings while minimizing taxes.
Through a custom-designed retirement plan stack, he and his wife were able to contribute over $575,000 across multiple plans in a single year.
This strategy not only helped secure their financial future but also generated over $222,000 in immediate tax savings, significantly increasing their cash flow and long-term wealth-building potential!
James runs a construction company with high employee turnover and wanted a way to protect cash flow while maximizing retirement contributions.
Through a custom 401(k) and profit-sharing plan design, we used strategic eligibility and vesting schedules to limit costs from short-term employees while allowing ownership to maximize contributions.
This strategy protected company assets, controlled expenses, and helped James build significant retirement wealth.
Eileen, a small business owner, needed a low-cost retirement plan that would meet state mandate requirements while helping her recruit and retain high-quality employees.
Eileen used a customized 401(k) solution focused on minimizing expenses, giving Eileen a competitive edge in hiring without pulling resources away from reinvesting in her growing business.
By using tax credits, her design allowed her to stay compliant, attract top talent, and keep her financial priorities aligned.
*These are hypothetical clients with hypothetical situations and plan designs.
Learn more: Physicians | Dentists | The Retirement Plan Stack | Tax Strategies for Business Owners | About Us
Yes. Each partner can be placed in their own benefit group with a different pay credit, so one partner can contribute the maximum while another contributes much less or nothing beyond the 401(k).
The partnership decides. Many groups allocate each partner’s own contributions, plus a share of staff contributions, to that partner through the compensation formula.
It’s an IRS rule that can treat related businesses, such as a practice and its partners’ professional corporations, as one employer for retirement plan purposes. All of them must be considered when designing and testing the plan.
Professional service employers, including medical practices, are generally exempt if the plan has 25 or fewer active participants. Larger plans pay premiums.
Yes, through plan amendments, which generally need to be made before the start of the period they apply to. We review elections with each partner every year.
Their vested cash balance account can usually be paid as a lump sum and rolled into an IRA. The plan continues for the remaining partners.
Yes. The cash balance plan is added alongside your 401(k) and profit sharing plan and tested with them.
Life, Inc. Retirement Services does not offer tax advice. Please always consult your tax professional about your eligibility for tax credits.
Life, Inc. Retirement Services is a Registered Investment Advisory Firm of the state of Ohio and licensed in Florida and Maryland. All emails and communication are meant to be informative and educational and should not be considered a sale of security until proper notification and disclosures are given.