Dental Practice with 10 Employees

CASE: Dr. Smiley

  • Dr. Smiley is 49 years old, married, and the owner of a thriving Endodontist practice with ten employees.
  • They file as a Professional Corporation.
  • He nets approximately $1.5m after expenses.

Sunil’s Tax Liability before implementing Designer DB Plus®

  • Net Profit after Expenses and deductions$1,500,000
  • Married Filing jointly tax Liability at 37%$550,000
  • Creditor Protected Retirement Savings$0.00
  • Tax Free Medical Reimbursement in Retirement$0.00

GOAL: Reduce his personal taxes, accelerate his retirement savings to maintain his lifestyle, create tax-free post-retirement savings for health & medical care to cover high costs in retirement and create a succession plan for his son to take over practice.

  • Net Profit after Expenses:$1,470,000
  • Plan Contribution$1,162,952
  • Qualified Business Income:$307,048
  • Taxable Income:$307,048

  • Tax & Deferred Savings First Year

    $470,208*

  • Creditor Protected Retirement Savings:

    $1,139,693

  • Tax Free Medical Reimbursement in Retirement

    $284,923

*Please consult your tax advisor; RAS does not provide tax advice but will collaborate with your tax advisor.

* Tax savings compared to no plan implemented and an estimated 37% tax rate. RAS does not provide tax advice. This example is based on specific assumptions and is used for illustrative purposes only.