Designer DB Plus® Case Study

Endodontist
Tax Reduction Strategy

Age 49 dental practice owner — transforming $1.5M net income into maximum retirement wealth through a multi-layer actuarial plan structure.

Age 49 Endodontist
Dental Practice Owner
$1,500,000
Annual Net Income
Annual Results

Key Financial Outcomes

A single Designer DB Plus® plan structure delivers five powerful financial outcomes simultaneously — turning pre-tax dollars into retirement capital, tax savings, and medical reserves.

💼
Deductible Contribution
$1,162,952
Fully deductible from net income
📉
Taxable Income Reduced To
$307,048
From $1,500,000 gross income
💰
Year-1 Tax + Deferred Savings
$470,208
Immediate and long-term combined
🏦
Protected Retirement Savings
$1,139,693
Allocated to owner's retirement
🏥
Medical Reimbursement Bucket
$284,923
Potentially tax-free medical reserve
Plan Structure
Designer DB Plus® — Endodontist Profile
Age 49 • Dental Practice
Multi-Layer Plan Structure
Layer 1 Cash Balance Plan (Defined Benefit) ~$818,029
↓
Layer 2 401(k) + Profit Sharing ~$66,000
↓
Layer 3 401(h) Medical Reserve Account ~$284,923
Total Contribution
$1,162,952
All three layers combined
Taxable Income Remaining
$307,048
Down from $1,500,000
Tax + Deferred Savings
$470,208
Year-one combined benefit
Medical Reserve
$284,923
Potentially tax-free
🎯
Owner Outcome: The majority of the $1,162,952 contribution is allocated directly to the owner's retirement wealth — $1,139,693 in protected retirement savings — while a $284,923 medical reserve is built for future tax-advantaged healthcare costs.
Financial Breakdown

Income & Deduction Detail

How the Designer DB Plus® structure reshapes taxable income and builds multi-dimensional wealth for this Endodontist.

Item Category Amount
💼 Net Practice Income Starting Point $1,500,000
📋 Cash Balance Plan Contribution Deductible −$818,029
📋 401(k) + Profit Sharing Deductible −$66,000
🏥 401(h) Medical Account Medical Reserve −$284,923
📉 Remaining Taxable Income Taxable $307,048
💰 First-Year Tax + Deferred Savings Combined Benefit $470,208
🏦 Protected Retirement Savings Owner's Wealth $1,139,693
Total Deductible Contribution $1,162,952
How It Works

The Designer DB Plus® Flow

Six steps from practice income to protected retirement wealth and tax-free medical reserves.

Step 1
💼
Practice Net Income
$1,500,000
Step 2
📐
Actuarial Plan Design
Step 3
📋
3-Layer
Contribution
Step 4
📉
Income Reduced to $307K
Step 5
💰
$470K Tax & Deferred Savings
Step 6
🏦
$1.14M Protected Retirement
ℹ️

This case study is provided for illustrative purposes only. Individual results vary based on plan design, number of employees, compensation levels, age, and other actuarial factors. All figures are approximations. This does not constitute tax, legal, or financial advice. Consult a qualified retirement plan specialist and tax advisor before implementing any strategy.