Yes you want to supplement. We have a relationship with Unum, so that’s easy but I did better shopping on my own.April 10, 2018 at 8:23 pm MST #116430Dr. RightParticipantStatus: PhysicianPosts: 8Joined: 03/24/2018
Is it true that Kaiser decreases your benefit if you get supplementary disability insurance?April 10, 2018 at 9:06 pm MST #116435
Ooh ooh, where’s @Wally World?! Here’s a thread for him!Click to expand…
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.Click to expand…
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.April 11, 2018 at 12:08 pm MST #116548AnjaliFITParticipantStatus: Financial Advisor, Small Business OwnerPosts: 107Joined: 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.April 11, 2018 at 12:51 pm MST #116554
I’m looking forward to the webinar on the new tax laws. Should be an interesting hour.April 21, 2018 at 3:34 pm MST #119101
Also, the early separation process is not arduous, just slow. You should plan on giving a year’s notice.April 21, 2018 at 3:37 pm MST #119102Dr. RightParticipantStatus: PhysicianPosts: 8Joined: 03/24/2018April 21, 2018 at 4:30 pm MST #119106
Have to be a current SCPMG MD/DO. They’ll record it and put it on the portal.PedsParticipantStatus: PhysicianPosts: 3626Joined: 01/08/2016
i overheard a comment that someone wanted SCPMG to move to a SEP plan……i almost died.April 22, 2018 at 9:33 am MST #119171
I’m looking forward to the webinar on the new tax laws. Should be an interesting hour.Click to expand…
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.April 23, 2018 at 10:03 am MST #119397burritosParticipantStatus: PhysicianPosts: 332Joined: 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.April 23, 2018 at 2:02 pm MST #119449PedsParticipantStatus: PhysicianPosts: 3626Joined: 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.April 23, 2018 at 4:21 pm MST #119505
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???April 30, 2018 at 6:51 pm MST #121297
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.April 30, 2018 at 6:57 pm MST #121303AnjaliFITParticipantStatus: Financial Advisor, Small Business OwnerPosts: 107Joined: 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.Click to expand…
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!May 1, 2018 at 4:36 am MST #121339