Top Retirement Strategies for Practice Owners

If you are a practice owner, you are responsible for your own retirement planning. All doctors of optometry should consider a varied retirement plan, and if you own the business, just selling your practice may not be enough.

While your practice may be your largest asset, diversifying your retirement portfolio adds additional security, and there are a variety of retirement accounts to consider. Supplement the sale of your practice with retirement accounts like:  

• SIMPLE IRA: A SIMPLE IRA is a retirement plan for employers, including self-employed individuals. It allows all employees to contribute part of their pre-tax compensation to the plan, deferring tax payments until retirement when the money is withdrawn.
• Traditional 401(k): These plans allow contribution flexibility and increased contribution limits, but require more administration than a SIMPLE or Safe Harbor 401(k).
• Roth and Traditional IRA: If you are looking for a way to save for your retirement alone, without involving employees, a Roth or Traditional IRA may be best. Roth IRAs let you contribute after-tax dollars and take tax-free distributions in retirement provided certain conditions are met; traditional IRAs let you contribute pretax dollars, but you’ll pay tax on the distribution.

No matter what your situation might be, AOAExcel is here to help. To learn more about retirement planning, visit AOAExcel at ExcelOD.com/members-retirement.