How to Pay Less in Taxes the Year You Sell Your Practice with Karl Willman

Optometrists that own their own practice are always looking for strategic ways to reduce their tax liability. The tax bill that’s generated when an optometrist sells their practice can have a big impact on how much money they keep as a result of the transaction. Retirement plans like the 401(k) profit sharing plan are usually go-to strategies, but there are limitations in how much one can contribute annually into these plans. Additionally, there’s little that can be done with a 401k profit sharing plan to help offset and reduce the tax liability that’s generated in the year of the sale. Cash balance plans are a little-used planning strategy by optometrists. If used correctly, though, a cash balance can help a practice owner accelerate their accumulation of retirement dollars, capture significant tax deductions in the year of contributions, and offset potential tax liabilities generated in the year of a practice sale. As a reminder, you can get all the information discussed in today’s conversation by visiting our website at www.integratedpwm.com and clicking on the Learning Center. While there, you can also set up a 20-30min Discovery conversation to learn a little bit more about how we help ODs around the country reduce their tax bill, manage cash flow, and make proactive money decisions or check out any number of additional free resources like our eBooks and on-demand webinars. ————————————————————————————— Please rate and subscribe to 20/20 Money on these platforms Apple Podcasts Spotify Google Play Stitcher  ————————————————————————————— For past episodes of 20/20 Money with full companion show notes, please check out our episode archive here!