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      Pre-Tax (Retirement Plan) versus After-Tax Savings
     
     
    This spreadsheet compares the present value of saving using tax-deductible retirement plan contributions with the present value of saving using after-tax investments.  It assumes you save and invest from current age until the age of 65.  Distributions begin at age 70.  If the "Advantage of Retirement Plan Savings" is positive, it is more advantageous to utilize tax deductible retirement plans.  If the "Advantage of Retirement Plan Savings"  is negative, it is more advantageous to utilize after-tax savings.
    Input Variables:    
    Current Age
    Pre-Tax Investment Return
    Are you subject to the Medicare surtax?
    (Yes if MAGI is above $200,000 for single filers or $250,000 for joint filers)
    Current Marginal Tax Rate (Federal and State)
    Average Tax Rate in Retirement (Federal and State) on Retirement Plan Distributions
    Doctor and Spouse Annual Retirement Plan Contribution Amount
    Staff Annual Retirement Plan Contribution Amount
    Annual Retirement Plan Administrative Cost
    Results:    
    A:  Save using Tax Deductible Retirement Plan  
    Total Annual Retirement Plan Contribution and Cost
    B:  Save using After-Tax Dollars  
         
    After-Tax Investment Return*
    Annual After-Tax Amount Available to Save
      Advantage (Disadvantage) of Retirement Plan Savings
         
    *Uses Pre-Tax investment return and assumes a 30% tax on investment gains (33.8% if subject to Medicare surtax)
       
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