Litovsky Asset Management

My latest article on how to implement mega backdoor Roth strategy with ERISA retirement plans published by White Coat Investor blog:

https://litovskymanagement.com/2021/06/mega-backdoor-roth-erisa-401k-plans/

Most plans that are not owner-run, such as those offered by hospitals, universities, and other large employers don't allow the option for doing Mega Backdoor Roth conversions, but a smaller partner-run practice plan can easily adopt any changes necessary to implement the mega backdoor Roth 401(k) strategy.

Mega Backdoor Roth with ERISA 401(k) Plans | Litovsky Asset Management: Retirement Plans for Doctors & Dentists mega-backdoor-roth-erisa-401k-plans Smaller partner-run practice plan can easily adopt any changes necessary to implement the mega backdoor Roth 401(k) strategy.

https://litovskymanagement.com/faq/

Medical Practice Retirement Plan FAQ | Litovsky Asset Management Frequently asked questions about retirement plan services, service providers and plan sponsor fiduciary obligations. More questions? Call ☎ (508) 292-8380.

https://litovskymanagement.com/2017/08/reduce-practice-retirement-plan-cost/

It is well-known that the majority of retirement plan providers that serve the small and mid-sized retirement plans are bundled platforms that make most of their money via asset-based fees. Many plan providers do not offer the best available solutions to small solo and group practice plans, and this often means sub-par plan design and lack of any fiduciary or compliance services, which leads to higher plan cost and can potentially result in unnecessary expenses later on. Even those providers who are open-architecture tend to charge significantly higher fees for small solo and group practice plans relative to what the larger plans pay for the same services. However, it is definitely possible to get the best available plan services at a lower cost.

How To Reduce Your Practice Retirement Plan Cost | Litovsky Asset Management: Retirement Plans for Doctors & Dentists It is well-known that the majority of retirement plan providers that serve the small and mid-sized retirement plans are bundled platforms that make most of their money via asset-based fees. Many plan providers do not offer the best available solutions to small solo and group practice plans, and this...

https://litovskymanagement.com/2017/08/best-plan-practice-401k-simple-ira/

One of the biggest retirement plan questions for small practice owners is whether to set up a SIMPLE IRA or a 401(k) as their first retirement plan. Often, practice owners opt for a SIMPLE IRA only because there are no administrative costs associated with operating this plan. In some cases this can be a big mistake, especially if you have the ability to contribute significantly more to a 401(k) plan.

While it is true that SIMPLE has no administrative cost, the biggest cost of using SIMPLE vs. a 401(k) is the income tax on the money that could be contributed to a 401(k) instead. For those in the highest tax brackets, this cost can be as high as 50 percent.

What are the advantages and disadvantages of SIMPLE IRA vs. the 401(k) plan, and how can you make an informed decision on selecting the best type of plan for your practice?

What Is The Best Plan For My Practice, 401(k) Or SIMPLE IRA? | Litovsky Asset Management: Retirement Plans for Doctors & Dentists One of the biggest retirement plan questions for small practice owners is whether to set up a SIMPLE IRA or a 401(k) as their first retirement plan. Often, practice owners opt for a SIMPLE IRA only because there are no administrative costs associated with operating this plan. In some cases this can....

https://litovskymanagement.com/2018/01/ideal-retirement-plan/

After doing the analysis with your retirement plan adviser, you decide that a SIMPLE IRA is not going to allow you to save enough, and that you want a custom-designed 401(k) plan instead. Once you start looking around for a retirement plan provider for your practice, it does not take long to realize that plans offered to small practices are sold as a product rather than custom-designed for each practice based on your specific practice needs. When looking for the lowest cost option, small practice owners often opt for plans with lower recurring administrative fees, and end up paying significantly more than they anticipated over the long term because most of the cost is hidden in the asset-based fees charged for plan investments and services. Moreover, many retirement plan providers are large record-keepers which don’t have much interest in working with small practice retirement plans, so their service quality for small plans can be significantly lacking, and this will end up costing you money.

The Ideal Retirement Plan for Your Practice | Litovsky Asset Management: Retirement Plans for Doctors & Dentists Once you start looking around for a retirement plan provider for your practice, it does not take long to realize that plans offered to small practices are sold as a product rather than custom-designed for each practice based on your specific practice needs. When looking for the lowest cost option, s...