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It is becoming more common for us to see retirement plans where the owners are not able to fully fund their portion because it is tremendously expensive because of the employees.  We have a special retirement plan design that may allow you (the owner) to maximize your contributions in a very efficient way for the pharmacy cash flow.  We believe that this is one way you should be rewared for taking the risk of pharmacy ownership.  This site is dedicated helping you create a more efficient benefit for the company and fulfill your responsibilities for being a plan sponsor.

Pharmacy 401k plans are a great way to save money and provide a benefit to your employees. Please visit the website at www.pharmacy401k.com to learn more.  Below is Waypoint's blog dedicated to pharmacy 401k plans and retirement planning for pharmacy owners.

Pharmacy401k: 2017 IRS Limits for popular pharmacy retirement plans

Posted by Tyler Campbell on Mon, Feb 13, 2017 @ 10:30 AM

2017 IRS Limits for Popular Pharmacy Retirement Plans

Now that we are well into the start of a new year, it is always nice to take a moment to review government regulation changes.  The most popular retirement plans for independent pharmacies across the nation are 401(k)’s and various IRA’s, and the following are the updated limits that one can contribute and defer into these plans for the 2017 calendar year.

  1. Individual IRA
    1. $5500 contribution annually per individuals under 50 years of ageMH900400857.jpg
    2. An additional $1000 annually can be contributed after age 50
    3. Traditional pre-tax and Roth (after-tax) IRA’s are available
    4. Roth IRA’s are not permitted for individuals whose income exceed $133,000 (or $196,000 for married filers)
  2. SIMPLE IRA
    1. $12,500 contribution/deferral annually per individuals under 50 years of age
    2. An additional $3000 annually can be contributed after age 50
    3. Traditional pre-tax contributions only
    4. Employer has option to match contributions
  3. SEP IRA
    1. 25% of total compensation or $54,000 (lesser of the two) annually
    2. Equal percentage must be paid to all employees
    3. Discretional from year to year
  4. 401(k)
    1. $18000 contribution/deferral annually per individual under 50 years of age
    2. An additional $6000 annually can be contributed after age 50
    3. Traditional pre-tax and Roth (after-tax) contributions/deferrals are available
    4. Employer has option to match contributions
  5. 401(k) with profit sharing
    1. $54,000 annually per individual under 50 years of age
      1. Includes deferrals, match, and profit sharing contribution
    2. An additional $6000 annually can be contributed after age 50
    3. Profit Sharing is discretional from year to year

Understanding the pros and cons of these plans are critical.  Having the right plan in place provides pharmacy owners the ability take advantage of tax saving and to reach their personal goals for retirement, while improving their ability to attract, retain, and reward their most valuable employees.

Which plan is right for my pharmacy?

At Pharmacy401k we can customize a plan to meet pharmacy owners’ goals, needs, and objectives.  Contact tyler@waypointus.com for a complimentary workshop or more information.


 

Topics: pharmacy retirement plan, 401k

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