A doc shares his journey of advocating for changes to his employer 401(k) plan, resulting in the addition of after-tax contributions and mega back door Roth contributions. The podcast also discusses the keys to being a successful doctor and maximizing 401(k) contributions. Additionally, it debunked misconceptions about tax brackets and emphasized the importance of understanding the progressive income tax system.
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Quick takeaways
Advocating for changes to your employer 401(k) plan can lead to the addition of options like after-tax contributions and in-service distributions, enabling mega backdoor Roth contributions and increased retirement savings.
Increasing patient volume and being accessible and flexible can significantly boost earnings for family physicians, emphasizing the importance of maintaining a competent staff and having a good nurse.
Deep dives
Dr. Brian Reichenbach changes his 401k
Dr. Brian Reichenbach shares how he successfully advocated for an after-tax option in his 401k, allowing him to utilize a mega backdoor Roth. This change enabled him to max out his contributions and significantly increase his retirement savings. He emphasizes the importance of being proactive and suggesting improvements to your employer-sponsored retirement plan.
Tips for maximizing your income as a family doc
Dr. Reichenbach attributes his higher than average income as a family physician to being affable, able, and available. He has increased his patient volume by being accessible and flexible, which has allowed him to boost his earnings. He also highlights the value of having a good nurse and maintaining a friendly and competent staff.
Understanding tax brackets and effective tax rates
The podcast delves into the confusion surrounding tax brackets and clarifies that being pushed into a higher tax bracket does not mean all income is taxed at that rate. Rather, it is important to focus on the marginal tax rate, which only applies to the income within that specific bracket. The episode advises physicians to ensure they are within the safe harbor of tax withholding and explains the difference between taxes withheld and taxes actually owed.
We loved hearing from this doc about how he advocated for changes to be made to his employer 401(k) plan. After a few years of requests he was happy to find they had added an option to have some after-tax contributions and in-service distributions that allows for mega back door Roth contributions. We love to see you making educated and positive changes in your workplace! Stick around after the interview for a discussion on tax brackets.
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