As the end of the year is approaching, RCMA Business Partner, WestPac Wealth offers member physicians financial advice for minimizing 2021 tax liabilities. This is a good time to review your financial statements for Quarters 1-3, analyze your 2021 performance, and project how 2022 will go. If you are seeing a healthy bottom line, it will be important to know what your options are to help minimize your 2021 tax liability. One of the ways to minimize your tax liability is to have a customized retirement plan designed for your practice. Often times, rushing to find tax deductions at the last minute could be undesirable to your bottom line. You may want to look into executive, employee benefits, and owners' incentives all dollar-for-dollar deductions. Much of which, can benefit the owners. If you do not have a retirement plan in place in 2022 CalSavers will require that you have one in place for your employees. This is a good time to get this set up for 2022. Retirement plans can be simple to set up depending on your needs, but you will not want to risk not having one in place for your employees. If you have a retirement plan in place and it is not giving you the deduction you need or would like to help lower your tax liability you may want to consider a custom plan design to suit your needs for you and your practice. You can also assess fees and expenses. Often customized plans can have a lower expense ratio, get more in for retirement, and lower employee costs to the owners. A custom plan could decrease your taxes by 50% and get you qualified for another 20%. Essentially giving you a 70% reduction. Tax law is ever so changing and will continue to change. As a Physician there are certain rules to retirement plans that can impede your tax planning. Rule 199A is a tax code that is there to help but has limitations. It will sunset in 2025. Now is a great time to understand how you can qualify because it could reduce your taxes up to 20% on top of retirement plans, which could get you up to a 70% reduction in taxes if built properly. If you are considering selling practice in the next 5 years this may be a great time to assess how you can build tax-friendly planning for your practice transition and create a comprehensive exit strategy. WESTPAC Wealth Partners Westpac Wealth Partners is a full-service wealth management firm that focuses on Medical Professionals. RCMA Members will receive a Complimentary Financial EKG, worth $5,000 - $10,000, which is a personalized website with complete financial data displayed as a living balance sheet. Additional financial and alternative solution planning fees will be waived when physicians choose to have their assets managed by WestPac Wealth Partners . For more information contact Jonathan Barrera at (512) 423-3250 or email@example.com or visit www.westpacweath.com .