The threat of the Bush tax cuts expiring in 2010 prompted many high-net-worth individuals to review their qualified plans to ensure maximum income deferral capabilities. I was asked to review a successful plastic surgery practice with five partners. The recommendations I made for them could be applicable to high-income business owners of any type that have only a few employees and need to make up for lost time in planning for retirement.

My client has a mature practice with consistent cash flow and limited administrative costs. His goal was to maximize contributions with pre-tax money to a retirement plan. The plan he had in place was a basic 401(k)/profit sharing plan. Each partner (in their mid-to-late 40s) earned in excess of $250,000.

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