Retirement Plans
Your future is only as good as you make it.
“The California Dentists’ Guild has been a one-stop-shop for all my retirement planning needs for 17 years. Great investment options, full service from bookkeeping to filing taxes, a knowledgeable staff, and low fees.”
– Ed Lee, DDS
CDG offers several retirement investment plan and fund options for new practices, established practices and retired dentists.
Before you can determine what types of funds are right for your future, you must first select a plan
Our 401(k) Plans
With our online account set up, you can create an IRA account in minutes, and know that online advice is available on all accounts at no cost to you.
A 401(k) is a defined contribution retirement plan established by an employer for the benefit of employees. This 401(k) offers greater flexibility and allows you to customize a plan for you and your employees. A popular type of 401(k) is known as a Safe Harbor 401(k). You have options such as employer match or profit sharing, and many more.
A profit sharing plan is a type of defined contribution plan that lets companies help employees save for retirement. This is the most flexible of all retirement plans. You choose the amount you want to contribute from year to year, under certain IRS limits. And you don’t need to make a profit to contribute.
An Age-weighted Profit Sharing Plan is one that allows for higher contributions for older employees who are closer to retirement age. This plan takes into consideration both the age and compensation level of your employees. This usually benefits older owners or employees, who accumulate more benefits per year.
Like traditional 401(k) plans, Safe Harbor retirement plans may allow for employees to make pre-tax contributions to a retirement savings account via payroll deductions. However, unlike a traditional 401(k) plan, employer contributions to a Safe Harbor plan are generally required.
Under a SIMPLE 401(k) plan, an employee can elect to defer some compensation. But unlike a regular 401(k) plan, you the employer must make either: A matching contribution up to 3% of each employee’s pay, or a non-elective contribution of 2% of each eligible employee’s pay. This plan is for dentists with a staff of 100 or fewer employees and is a subset of the popular 401(k) plan. Participants can voluntarily contribute a portion of their salary on a pretax basis.
A “new comparability” plan is a flexible type of profit sharing retirement plan that can either stand alone, or be part of a 401(k) plan. Small business owners find these plans attractive for their flexibility in dividing employees into different groups, and assigning these groups different profit sharing contribution rates. Often, business owners will be able to maximize the contribution rate for the group they belong to, so long as the other groups receive an adequate minimum allocation. Under this type of plan, and usually a cross-tested plan, participants are divided into two or more groups. Each group receives its own level of employer contributions.
A defined benefit pension plan is a type of pension plan in which an employer/sponsor promises a specified pension payment, lump-sum or combination thereof on retirement that is predetermined by a formula based on the employee’s earnings history, tenure of service and age, rather than depending directly on individual investment returns. This plan works well if you want to contribute, and deduct, more than other types of plans. Although this plan is complex to administer with actuarial services at an additional charge, it could produce significant benefits in a relatively short period of time.
IRA Programs
With our online account set up, you can create an IRA account in minutes, and know that online advice is available on all accounts at no cost to you.
You could potentially see higher returns if you roll your IRA into our CDG platform. We’ll help you avoid common mistakes and unnecessary taxes and penalties.
This traditional plan is a personal savings plan with tax advantages. Contributions you make may be fully, or partially, deductible.
Contributions to this account are not tax deductible. But it offers a future tax break; tax-free income when you retire.
A simplified employee pension plan allows you to contribute a percentage to each participant per year. Employee becomes eligible to participate after 3 years of employment. All participants are 100% vested.
Membership Benefits
There is no cost to join the Guild, but you must be a registered dentist in California. As a member, you’ll enjoy the following benefits:
We pool our investments to leverage programs that provide greater value while maintaining individual accounts, giving you access to institutional funds at a lower cost not normally available to the retail public.
We perform yearly IRS mandated tests (cross-testing) and prepare your tax Form 5500 at no additional cost.
You have access to investment education and guidance, and benefit from personalized services by the CDG staff.
Our team reviews current investments, recommends changes and provides continuing investment monitoring services.
