CLIENT – Southtowne Medical Clinic
SERVICES – Retirement Plan & Administration
Southtowne Medical Clinic, LLC is a successful medical clinic in Salt Lake City, Utah. They have four owners and a support staff of ten. The owners would like to provide a retirement plan to their employees and be able to contribute as much as possible on their own behalf.
We initially met with the owners to discuss the various retirement options they had and to determine what their goals were. From this meeting we determined that their desires were specifically two fold, to be able to put as much away personally as possible and to offer a retirement option to their employees in hopes of keeping them with the Clinic longer.
After meeting with the owners we created a specific retirement plan document that allowed the owners the opportunity to put the maximum amount in any year away for each of the owners, as well as giving their employees the opportunity to defer to the plan and to possibly receive a profit share.
During our yearly administration we worked with the owners and staff to educate them on how their new retirement plan worked. We were also able to prepare various profit share calculations for the owners to determine what if any amount they wanted to give in a profit share. Because of the plan design we were able to provide calculations in which seventy percent of the profit share amounts went to the owners and thirty percent to the staff. We also assisted the owners in the required plan testing and preparation of the informational return that are required to be filed with the IRS and Department of Labor. By properly utilizing their retirement plan the owners were also able to achieve one of their overall business goals of saving tax.