Make Sure You Receive Your Tax Refund

If you filed for a tax refund and haven’t yet received it, go to the IRS Web site ( and click on “Where’s My Refund.” You will need to enter some basic identifying information to find out the status. You could also call the IRS’s Automated Tax Refund Service at (800) 829-4477. The refund information […]

Activity Grouping and the 20% QBI Deduction

For readers who own their office building, we recommended in the April 15th Newsletter the concept of “grouping” or “aggregating” the practice entity and the real estate entity in order to deduct the big real estate depreciation deductions against the practice income. This concept works on steroids with a cost segregation study that front-loads these […]

Restrictive Covenants for Hygienists and Expanded Function Dental Assistants

Expect the non-compete to be held unenforceable. In a recent case in New York, a dermatologist hired a physician’s assistant and required her to sign an employment contract with a two-year and 15-mile restrictive covenant. The relationship fell apart, the P.A. went to work within the 15 miles, and the former employer sued. The court […]

How Much Should Parents of Young Children be Saving in 529 Plans?

To deal with this logically, you have to back into the figure after making a few assumptions. Let’s say you have a five year old child that you expect will one day attend an expensive private college. The tuition, fees, and room and board at such a college cost roughly $70,000 per year today or […]

If You Don’t Have the Money to do Both Simultaneously, Should You Save For Your Future Retirement or For Your Child’s Future Education?

Each of us has to answer that for him/herself, but here’s my take on it. I’d opt for retirement savings first. My primary reason is that there is outside help available for a child’s education, but not for retirement. Loans are available to fund college expenses but are not available to fund retirement costs. My […]

Investment Management Fees for Retirement Plans Should be Paid Out of the Corporation Rather Than Out of the Retirement Plan

If you pay an advisor to manage your retirement plan investments, ask them to bill your practice for their fee rather than take the money out of the retirement plan (which is the common practice). If investment fees are paid out of the plan, they will be allocated pro-rata among the participants. Generally, the doctor […]

The Practice Should Pay Current and Future Investment Fees, NOT Reimburse the Plan for Past Fees

Under the retirement plan laws, the practice can put money into the plan as an annual contribution, a rollover contribution from another plan, a corrective contribution (to fix a prior mistake) and related earnings on that corrective contribution. A reimbursement to cover past fees will be treated as an additional contribution which would be required […]

Tips for New Car Buying

2018 auto sales are slightly below last year’s figure and even further below the all-time record in 2016. Demand isn’t quite as strong as it was a few years ago when people who had put off car buying because of the Great Recession finally got back in because their old cars were falling apart. Sales […]

Orthodontists: Look Into Joining the Large Purchasing Group Known as Mari’s List

The company founder, Mari Sawtelle Dunn parlayed her prior career as a lab technician and orthodontic assistant into a huge network of over 90 vendors and 1,400 orthodontists. The initial set-up fee is $400 and there’s a $1,200 annual fee to remain in the group. 97% of the orthodontists renew their membership because their discounts […]

Articles on Retirement Plans That Are Written by Insurance Salespeople Should be Read with a Jaundiced Eye

A doctor friend emailed us an article he’d read on the benefits of cash balance plans. The writer’s bio stated that, among other things, he is a licensed life insurance salesman. The article itself did a reasonable job describing cash balance plans, but it inevitably transitioned into a pitch for funding the plan with permanent […]

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