Radiology Group

A leading radiology group in Atlanta was enjoying profitability, and its partners wanted to significantly increase tax-deferred retirement savings. Their retirement plan consultant was unable to offer any solutions, so the group decided to seek another opinion.

One of the physicians active on the retirement committee attended a seminar hosted by Kravitz. After hearing about Cash Balance plans from Dan Kravitz, they discussed the merits of a Cash Balance plan for their medical group and how it could dramatically boost the physicians’ savings.

The group then asked Kravitz to overhaul its retirement program. Kravitz designed a Cash Balance Plan that would allow shareholder-doctors to have $100,000 or more contributed into their retirement accounts, tax-deferred. While not all physicians decided to be part of the plan, those that are have seen their contributions in the combined Cash Balance Plan/401(k) Profit Sharing plan double or even triple.

Illustration of Retirement Plan Options for 2018

(IRS limit)
401(k) PlanProfit Sharing PlanCash Balance PlanTotal Max Contribution
9 Doctors(50-60)$280,000$25,000$37,000$0 to $261,000$0 to $323,000
12 Doctors(40-49)$280,000$19,000$37,000$0 to $151,000$0 to $207,000
5 Doctors(30-39)$280,000$19,000$37,000$0 to $91,000$0 to $147,000
4 Doctors(30-60)$280,000$19,000$37,000$0$56,000
50 Employees7.5% of pay$500 each
50-60$2,000,000their discretion$150,000$25,000$175,000

Percent to Doctors: 96%