About The Plan
The Physicians’ Advantage Plan™ is a benefit program that maximizes the value of hospital-based compensation by providing a way for physicians and/or practice groups to defer current income taxes and accumulate wealth on a pre-tax basis without negating the opportunity to fully participate in qualified plans such as 401(k) and pension plans.
Like most people in high marginal tax brackets, physicians are interested in sheltering current income from state and federal taxes beyond the limits and restrictions of 401(k) and pension plans. However, they typically don’t have an opportunity to do so since private practices conduct business as S Corporations, LLC’s, or Partnerships, which are flow-through type tax entities. In such entities, practice income is taxable at the physician’s individual tax-rate. Therefore, traditional corporate executive benefits are not ideally suited for private practice groups. With the Physicians’ Advantage Plan™, a hospital can give physicians an advantage they cannot easily obtain for themselves by allowing them the opportunity to tax-defer a portion of their income.
Opportunity to defer all or a portion of eligible compensation and change elections annually
No age-based penalties on distributions made prior to age 59 1/2 and no required minimum distributions at age 70 1/2
Ability to defer current state and federal income taxes and invest on a pre-tax basis
There are no administrative costs for physicians
Distribution payments may be taken as a lump sum or spread out over a period of years
Distribution payments may be linked to specific life events such as college education funding or retirement planning
Want to Learn more? Let’s Talk
If you would like to learn more about the program and schedule a virtual informational meeting, please contact MaxWorth by completing the form below, or call us at 877-643-7520. Please be sure to confirm your time zone and select "set time zone" to begin.