If you’re looking to increase your savings for retirement while slashing your taxes, a cash balance defined benefit plan may be right for you. However, these plans are complex and mismanagement often leads to costly errors. Below, Tyler Ott, CPA*, a tax and business planning advisor with McGill and Lyon Dental Advisors, explains the three most common problems encountered and how to navigate them effectively.

Problem #1: Driving a Ferrari With a Governor!

Running a dental practice requires the careful management of both patients’ smiles and the practice’s cash flow. Likewise, designing and operating a cash balance plan necessitates a thorough understanding of your practice cash flow. Many overly cautious doctors operate their cash balance plans at a benefit level significantly lower than their cash flow permits. While this cautious approach may seem prudent, it leads to overpaying your taxes and