PHYSICIAN RETIREMENT PLAN OPTIONS
5. Defined Benefit / Cash Balance Plan
These plans are often used by private practice owners or high-earning specialists to defer six-figure contributions each year, with all growth tax-deferred. They can be used alongside 401(k) plans to maximize savings. ⚠️ Complexity: These plans require actuarial support and commitment over several years, but they can supercharge retirement savings.
6. Rabbi Trust (Non-Qualified Deferred Compensation Plans)
Some hospitals and large medical groups offer a Rabbi Trust—a non-qualified deferred compensation plan typically offered to highly compensated employees. This plan allows you to defer a portion of your income into an investment account that grows tax-deferred. ⚠️ Caution: The assets remain legally tied to the employer and are subject to creditor risk. However, they can be a useful tool for high earners who have already maxed out other retirement vehicles.
Final Thoughts: Don’t Go It Alone
Choosing the right mix of retirement plans depends on your income structure, career goals, and tax situation. Making the wrong choices early on can mean lost time, missed compounding, and higher taxes.
That’s why working with a fiduciary financial advisor—one who is legally bound to put your interests first —is so important.
Compass Asset Management Group specializes in guiding physicians through every stage of their financial journey. From residency through retirement, we help doctors make informed, strategic decisions about investing, tax planning, and wealth preservation.
You’ve trained for a career of service
We’ll help you build a financial future that honors your hard work.
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STEVEN M DIGREGORIO President of Compass Asset Management Group, LLC and an Investment Advisor Representative with Spire Wealth Management, LLC.
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