Last-Minute
Tax Planning,
2019
HAVING SAID THAT, let's look at some
tax planning moves to consider.
1.
MANY MEDICAL PRACTICES
HAVE A 401(K) COMPANY
RETIREMENT PLAN.
This is a good sta r t but tends to fa ll
very short of actually providing decent
retirement funding for the key employees.
The 401(k) plan can be modified with pro-
visions that increase the company funding
for key employees without increasing
proportionately company funding for
the rank and file employees. However,
these provisions and new, more aggressive
retirement plans must be implemented
soon. That implementation can be as
simple as signing new retirement plan
documents. The provisions I refer to
also do not require mandatory funding
of the retirement plan each year. Each
year stands on its own as to whether the
physicians want to fund the retirement
plan for the current year.
BEFORE ANY TA X PL ANNiNG CAN BE PROPERLY PERFORMED,
PHYSiCiANS MUST HAVE A GOOD UNDERSTANDiNG OF THE YE AR-
TO-DATE NE T iNCOME FOR BOTH THEiR MEDiCAL PR ACTiCE
AND THEiR PERSONAL TA XES. THiS REQUiRES HAViNG TiMELY
FiNANCiAL STATEMENTS FOR THE MEDiCAL PR ACTiCE AND
KNOWiNG THE ESTiMATED TA X ABLE iNCOME AND PROJECTED TA X
LiABiLiT Y FOR THEiR PERSONAL SiTUATiON.
1 0❱❱❱❱❱ F i N A N C E
