Internal Revenue Code Section 79

Tax-Advantaged Benefit Plans for Doctors and Staff

Through financial planning due diligence, you are most likely already taking advantage of wealth accumulation and preservation options-contributing up to $200,000 or more in IRS-approved qualified retirement plans with tax-deductible dollars. However, as a high-income doctor, you probably still have surplus net-practice-earnings that are being lost to taxes unnecessarily.

Picture yourself lighting a match to a pile of money everyday-that's what could happen if you fail to follow an integrated financial strategy.

Greenbook can show you how to effectively manage your financial life in its totality, avoiding excess risk, maximizing allowable deductions and protecting income and savings from unexpected events.

Tax-Favored Benefit Plans

Internal Revenue Code Section 79 allows professional practices established as C Corporations to offer a specially designed series of benefits for both doctors and their employees on a tax-deductible basis, including group term life insurance and supplemental retirement funding.

Section 79 programs are not subject to qualified plan contribution limitations, and can therefore function as an extension of your existing programs to create incremental tax-advantaged savings. In addition, Section 79 can provide liquidity for estate tax purposes or charitable gifts for value system endowment.

Integrated Financial Planning for Doctors

A Section 79 program can function as a powerful financial planning tool, providing supplemental retirement dollars, survivorship benefits, and a more robust and affordable package for employees. Talk to Greenbook about how this and other components of an integrated financial strategy can help keep you from lighting a match to hundreds of thousands of dollars-in the form of unnecessary taxes and improper business structure-throughout your career.

How You Qualify

Section 79 Plans are available to:

  • Owners and employees of a C Corporation
  • Owners and employees of a LLC taxed as a C Corporation
  • Owners and employees who hold 2% or less of pass-through entities stock

If you don't qualify for a Section 79 Plan because your practice is not a C Corporation, talk to Greenbook about how to select and establish the most appropriate tax-reporting structure for your financial needs and goals.

Gain and Retain Highly Skilled Staff Members

According to US Department of Labor statistics, the nationwide workforce of registered nurses totaled 2.3 million in 2002. However, the largest healthcare occupational field will face a shortfall of 200,000 open positions by 2010-leaving doctors in search of qualified help or under pressure to keep their existing staff.

Benefits provided to key personnel are becoming increasingly important in attracting and keeping talented personnel. And, under Section 79, each full-time practice employee can enjoy a portable benefit.