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Any SCPMG Kaiser physicians on here?

Home Personal Finance and Budgeting Any SCPMG Kaiser physicians on here?

  •  G-pathy 
    Participant
    Status: Physician
    Posts: 100
    Joined: 01/10/2016

    Re: disability
    Yes you want to supplement. We have a relationship with Unum, so that’s easy but I did better shopping on my own.

    #116430 Reply
     Dr. Right 
    Participant
    Status: Physician
    Posts: 8
    Joined: 03/24/2018

    Is it true that Kaiser decreases your benefit if you get supplementary disability insurance?

    #116435 Reply
     KPInvestor 
    Participant
    Status: Physician
    Posts: 62
    Joined: 10/16/2017

    Ooh ooh, where’s @Wally World?! Here’s a thread for him!

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    Thanks for the nod, but I’m not going to be much help here. I work for Northern California Kaiser (ie TPMG). TPMG and SCPMG (Southern California Kaiser) are totally different entities and are structured in very different ways.

    While some things are similar (example, both provide pensions, called “Plan 1” in TPMG and the “Common Plan” in SCPMG), many things are very different (different 401k providers and investment options, matching, vesting schedule for pensions (after 5 years at TPMG, 10 years at SCPMG, etc)).

    As far as I understand things, TPMG is a corporation and SCPMG is a partnership. There are pros and cons of each different set-up. SCPMG has a Keogh plan, TPMG doesn’t. Recently, there was a presentation at our medical center on the differences between the two entities. I think this came up since people in NorCal were asking about restructuring as a partnership to be able to take advantages of the changes in the tax plan. Ultimately, the higher ups decided against making the change due to liability concerns (the corporate structure protects the physicians better?) and due to that it would be a large taxable event for shareholders in TPMG (ie all senior physicians) on the order of hundreds of thousands of dollars. I was fielding a call from the ED in the back of the room during part of the presentation, so I may have missed some details.

    At TPMG, doing the Mega Back Door Roth in plan conversion of any after tax contributions is allowed and quite an easy thing to do. I don’t know if there is something about the nature of SCPMG (either the partnership structure or just how the 401k is set up) that precludes this down there.

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    Interesting that you guys wanted to restructure into a partnership to take advantage of new tax laws.  As far as I was told, we had no advantages with the new tax laws.  Would you mind talking about what the potential tax advantages would be by restructuring into a partnership?  Thanks.

    #116548 Reply
    AnjaliFIT AnjaliFIT 
    Participant
    Status: Financial Advisor, Small Business Owner
    Posts: 107
    Joined: 04/01/2018

    My husband is with SCPMG so I’m familiar with their plans.  You seem to be doing everything you should and glad you elected the 100% Keogh.  The Common Plan/Defined Benefit plan is not going to have COLA since it is essentially a pension.  The calculation is based on years of credited service and highest average base monthly comp for 36 consecutive months over the last 10 years.  Based on the calculation you receive a monthly benefit for your lifetime depending on the time and form of payment elected.  There is an Early Separation Plan for partners between the ages of 58-65 but you must have 10 years of service and it has to be approved by the Board (not sure how arduous that process is).  The ESP doesn’t have survivor benefits.  I think the target date you have is fine…at the end of the day the asset allocation drives returns more so than the underlying investments that make up the asset class.

    For your Roth conversions…its great you are thinking about it but you won’t really know how much you can do until you’re at that point.  For our clients in that situation we usually run a tax projection before the end of the year and determine how much of the Rollover IRA/401(k) we’ll convert to the Roth. We do that calculation every year We are not only focusing on tax brackets but other items like Medicare premium income limits (premiums go up by a lot once you pass certain thresholds).

    For disability you may want to have one of the people on this site (I use Larry Keller a lot) review the Kaiser plan limits in comparison to your income – LTD is 50% of monthly covered earnings with a max.  Usually you can get disability for 2/3rds your income.  For my husband, the Kaiser amount wasn’t enough so he has a private plan to supplement.  Disability is the biggest liability for a physician (in my opinion) so I tend to recommend maxing out if you can afford it.  The group policies are also not quite as good as private ones so one of the disability experts can help you weigh pros/cons.

    Anjali Jariwala CPA, CFP®
    [email protected]┃847.863.6836
    http://www.fitadvisors.com

    #116554 Reply
     G-pathy 
    Participant
    Status: Physician
    Posts: 100
    Joined: 01/10/2016

    I’m looking forward to the webinar on the new tax laws.  Should be an interesting hour.

    #119101 Reply
     G-pathy 
    Participant
    Status: Physician
    Posts: 100
    Joined: 01/10/2016

    Also, the early separation process is not arduous, just slow.  You should plan on giving a year’s notice.

    #119102 Reply
     Dr. Right 
    Participant
    Status: Physician
    Posts: 8
    Joined: 03/24/2018
    early retirement for doctors

    Is that webinar only for SCPMG people?  If I am a new hire, can I watch it too?

    #119106 Reply
     G-pathy 
    Participant
    Status: Physician
    Posts: 100
    Joined: 01/10/2016

    Have to be a current SCPMG MD/DO. They’ll record it and put it on the portal.

    #119112 Reply
    Liked by Peds
     Peds 
    Participant
    Status: Physician
    Posts: 2082
    Joined: 01/08/2016

    i overheard a comment that someone wanted SCPMG to move to a SEP plan……i almost died.

    #119171 Reply
     KPInvestor 
    Participant
    Status: Physician
    Posts: 62
    Joined: 10/16/2017

    I’m looking forward to the webinar on the new tax laws.  Should be an interesting hour.

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    I just received an email about the webinar regarding the new tax laws.  I wonder why they are doing this since we were told that the new tax laws will change nothing.  There must be more to it in my opinion.

    #119397 Reply
     burritos 
    Participant
    Status: Physician
    Posts: 223
    Joined: 04/23/2018

    My wife is KP socal doctor who has no interest in the ins/outs of investing so I do it for her. While her projected date of retirement is around 2030, I’ve vested all her TSR/Keogh in the 2060 Target trust. There’s no ticker for this fund vs the 2060 Target fund(which does have a ticker VTTSX). The trust has lower fees. I think it’s only available to large institutions. I think Google employees have access to it, but they probably just all their stuff into GOOG which is A. Would anyone what the ticker is? I’d like to put it in our investment portfolio monitoring application.

    #119449 Reply
     Peds 
    Participant
    Status: Physician
    Posts: 2082
    Joined: 01/08/2016

    There is no ticker. Just use the 2060 fund in your monitoring tool.
    Assuming you have no other funds 90:10 might be rich.

    #119505 Reply
     KPInvestor 
    Participant
    Status: Physician
    Posts: 62
    Joined: 10/16/2017

    Anyone listen to the Ernest and Young presentation on the tax law changes?

     

    I was interested in the qualified business income deduction portion of the talk.  Correct me if I am wrong, but what I got from the talk was that if we had a taxable income of 415K or less, we would qualify for some portion of the 20% deduction.  (I believe there is a phase out from 315K up to 415K.)  Since this is taxable income and not AGI or gross income, I figure many of us would qualify for this.  Anyone know how it gets phased out from 315K and on?  Also if taxable income is 416K, is there no deduction at all???

    #121297 Reply
     KPInvestor 
    Participant
    Status: Physician
    Posts: 62
    Joined: 10/16/2017

    I also heard that NY state voted to allow people to donate money to the state as a charity and in return they would be given a credit on their state income tax.  I know california was also working on this but no vote has taken place on this so far.  Anyone in NY able to confirm this?  This would essentially reverse the SALT deduction limitations which greatly affect states like CA and NY.

    #121303 Reply
    AnjaliFIT AnjaliFIT 
    Participant
    Status: Financial Advisor, Small Business Owner
    Posts: 107
    Joined: 04/01/2018

    I also heard that NY state voted to allow people to donate money to the state as a charity and in return they would be given a credit on their state income tax.  I know california was also working on this but no vote has taken place on this so far.  Anyone in NY able to confirm this?  This would essentially reverse the SALT deduction limitations which greatly affect states like CA and NY.

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    I’ve been looking for an article or other coverage on NY passing the charitable fund in lieu of state income tax but haven’t come across anything yet. If someone does please pass along as I’m interested to look into the details.

    You are correct on the phase out – if taxable income is between between $315k and $415k then you may be entitled to some deduction. Once taxable income is over $415k and you are a specified service provider then you receive no deduction.  I believe the phase out calculation (from what I’ve read) is 1% for every $1,000 over $315k for a married couple.  Someone can check if the math works!

    Anjali Jariwala CPA, CFP®
    [email protected]┃847.863.6836
    http://www.fitadvisors.com

    #121339 Reply

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