Litovsky Asset Management

08/06/2026

My latest post on White Coat Investor Blog:

"A cash balance plan is an amazing vehicle that allows high-income doctors to accumulate significant tax-deferred assets over a relatively short term. In 2025, a lifetime maximum for a 58-year-old is about $4 million, and this can be accumulated over a 10-year period. There are big advantages to maximizing tax-deferred account contributions for those in the highest tax brackets. It can be demonstrated (see chart below) that, over a 10-year period, a cash balance plan is very advantageous vs. a taxable account for those in the highest tax brackets. It would take an average taxable account rate of return of between 10%-12% to just break even with a cash balance plan with an interest crediting rate (ICR) of 4% (assuming 37% federal and 0%-10% state brackets)."

Please follow this link to read the rest of this article on White Coat Investor blog:

Here's what to know about group cash balance plans and how you and your partners can use them to their greatest advantage.

07/07/2025

My latest White Coat Investor guest post on medical group practice retirement plans - Medical Practice Group Retirement Plans: The Good, the Bad and the Ugly

"Medical practice retirement plans typically have more assets than the plans of other non-medical businesses with a similar number of participants. And with most of the assets held by the partners/owners, it should come as no surprise that one of the biggest reasons why medical practice plan sponsors decide to make changes to their plan is high assets under management (AUM) fees and higher-than-necessary expense ratios for the plan investment options.

While minimizing cost is important, there are several other key considerations that plan sponsors should know about. Management of larger medical and dental plans (with two-plus owners) can be challenging due to the following factors..."

Full article can be found here:

Let's examine issues that group practice retirement plans may encounter and how to address them in a way that's compliant and cost-effective.

06/08/2021

My latest article on how to implement mega backdoor Roth strategy with ERISA retirement plans published by White Coat Investor blog:

https://litovskymanagement.com/2021/06/mega-backdoor-roth-erisa-401k-plans/

Most plans that are not owner-run, such as those offered by hospitals, universities, and other large employers don't allow the option for doing Mega Backdoor Roth conversions, but a smaller partner-run practice plan can easily adopt any changes necessary to implement the mega backdoor Roth 401(k) strategy.

Smaller partner-run practice plan can easily adopt any changes necessary to implement the mega backdoor Roth 401(k) strategy.

03/07/2019

My latest article on how to evaluate and compare retirement plan fees published by White Coat Investor blog:

https://www.whitecoatinvestor.com/evaluating-aum-fees-small-practices

Any plans that pay AUM (assets under management) fees can benefit from switching to a fixed fee structure as that can potentially save millions in unnecessary expenses.

01/22/2019

Retirement plan cost comparison calculator - this is the only tool that I'm aware of that can be used to calculate and compare your retirement plan costs over time:

https://retirementplanhub.com/retirement-plan-cost-calculator/

This is the easiest way to see how costly AUM (assets under management) fees are over the long term, and why it is important to get rid of all of your AUM fees.

As a solo contractor, a small practice owner, or a partner in a group practice, you will definitely want to consider a retirement plan to minimize your tax liability and to save for retirement. While the types of plans available for solo contractors and small practice owners are nearly identical, th...

11/16/2018

My latest article on Cash Balance plans for small practice owners published by White Coat Investor blog:

https://litovskymanagement.com/2018/10/cash-balance-plans-for-solo-and-group-practices/

As a small practice owner or a partner in a medical or dental practice, minimizing taxes and building your retirement savings are two of your biggest financial goals. Many doctors and dentists have a relatively late start and often have significant student debt upon graduation, and they also may have a relatively short time horizon until retirement, with many opting to stop practicing in their late fifties and early sixties. So it is no surprise that saving more than what is typically recommended by financial experts is the only way that such early retirement can be accomplished. Even with a relatively modest lifestyle, those who retire early will need to accumulate a sizeable portfolio without much time to get this done. While it is important to set up various buckets (including after-tax, Roth and tax-deferred) and to fill them to capacity, doctors and dentists in the highest tax brackets will see the most benefit from maximizing the tax-deferred bucket first. A 401(k) with profit sharing is the best plan for those who have the time to build up savings. A defined benefit plan known as a Cash Balance plan can be opened in addition to your existing 401(k). A Cash Balance plan helps boost your tax-deferred savings if you plan to retire in 10 years or less and you would like to catch up quickly. This type of plan can also increase tax-deferred savings if you are making a lot of money now but are not sure whether this will last over the long term.

A Cash Balance plan helps boost your tax-deferred savings if you plan to retire in 10 years or less and you would like to catch up quickly. This type of plan can also increase tax-deferred savings if you are making a lot of money now but are not sure whether this will last over the long term.

05/25/2018

https://litovskymanagement.com/faq/

Frequently asked questions about retirement plan services, service providers and plan sponsor fiduciary obligations. More questions? Call ☎ (508) 292-8380.

05/25/2018

https://litovskymanagement.com/2018/03/group-practice-retirement-plans/

Even though group practice retirement plans typically have a relatively small number of participants, these plans can be more complex and laden with compliance issues and challenges. Older group practice plans often have serious compliance and fiduciary issues, and unless someone knowledgeable takes the time to examine the plan operation and paperwork, chances are that these issues would only be discovered upon an audit by the Internal Revenue Service or U.S. Department of Labor – in other words, much too late. Compliance errors and fiduciary breaches can potentially lead to hefty IRS and DOL penalties and fines, especially if such breaches have occurred over many years. Therefore, it is preferable and almost always less costly to not only fix them, but also to make sure that your plan is run in such a way as to eliminate the possibility of serious breaches, errors, and liabilities in the first place.

Even though group practice retirement plans typically have a relatively small number of participants, these plans can be more complex and laden with compliance issues and challenges. Older group practice plans often have serious compliance and fiduciary issues, and unless someone knowledgeable takes...

05/25/2018

https://litovskymanagement.com/2017/08/reduce-practice-retirement-plan-cost/

It is well-known that the majority of retirement plan providers that serve the small and mid-sized retirement plans are bundled platforms that make most of their money via asset-based fees. Many plan providers do not offer the best available solutions to small solo and group practice plans, and this often means sub-par plan design and lack of any fiduciary or compliance services, which leads to higher plan cost and can potentially result in unnecessary expenses later on. Even those providers who are open-architecture tend to charge significantly higher fees for small solo and group practice plans relative to what the larger plans pay for the same services. However, it is definitely possible to get the best available plan services at a lower cost.

It is well-known that the majority of retirement plan providers that serve the small and mid-sized retirement plans are bundled platforms that make most of their money via asset-based fees. Many plan providers do not offer the best available solutions to small solo and group practice plans, and this...

05/25/2018

https://litovskymanagement.com/2014/01/hiring-fiduciary-adviser/

While fiduciary liability is an important consideration, the primary reason to hire a fiduciary who will act in your best interest is to help you minimize your plan expenses and assist you in managing your plan investments.

While fiduciary liability is an important consideration, the primary reason to hire a fiduciary who will act in your best interest is to help you minimize your plan expenses and assist you in managing your plan investments.