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     H. Meisl, MD
     California Emergency Physicians




Introducing Small Group Retirement Plans...

Small Group Physicians

Over the years, MedAmerica Financial Services had been approached by several smaller physician groups to set up plans duplicating the larger physician group plans.  However, because of filing fees, account set up costs, and sundry expenses, it was difficult to establish a cost effective plan that small physician groups could afford.  But we kept trying…

In early 2004, MedAmerica Financial Services, Inc. designed a profit sharing 401(k) plan and a defined benefit plan that are specifically tailored to the small physician group with less than 50 physicians.  These plans are not as flexible as a large group plan but offer identical provisions and appeal to physicians where it counts… in the pocketbook.   The plans are already pre-approved by the IRS and provide small physician groups with a standardized plan that is easy to establish.   MFSI’s first small physician group began funding their plan in August 2004.


Small Physician Group Profit Sharing 401(k) Plan Design

  • Multiple employer plan for hospital based physician groups (several groups are combined into one plan).
  • 20% contributions to a maximum of $49,000 (adjusted for inflation)
  • All physicians and employees who work 750 hours per year are eligible to participate
  • Ten plan sponsored mutual fund options or access to a self directed account that includes stocks, bonds, and mutual funds.  (Sorry, no art, jewelry, limited partnerships or investments in coca manufacturing plants.)
  • Loans, including tax deductible trust deed loans, up to $50K
  • Internet Access to individual account via www.schwabplan.com
  • Catch up provisions for participants over age 50
  • Quarterly statements showing contributions, earnings & personal performance
  • Matching provisions for non-physicians are determined by the physician group.

Small Physician Group Defined Benefit Plan Design

  • Eligibility for all physicians who have worked 18 months for the physician group (Grandfather provision applies for new groups.)
  • Required annual contribution of $2,500 for each eligible physician
  • Optional contributions of three separate scheduled amounts to be determined by group (i.e. $5,000, $15,000 & $30,000) are permitted
  • No Loans permitted
  • Actuarial computed balances published annually each April
  • Moderate Investment allocations established by Medamerica Retirement & Benefits Committee. (Approximately 50% fixed investments / 50% equity investments)

Regulatory Services provided for both plans

  • Quarterly investment review completed by Retirement and Benefits Committee, in an attempt to provide funds performing in upper quartile of their respective style.
  • Fiduciary Requirements such as periodic committee meetings, written investment policy, and annual audits all provided for each group plan
  • Annual Filing of IRS Form 5500 for each group plan
  • In the event of IRS or DOL plan audit (a normal occurrence that occurs every 7 – 10 years), MedAmerica Financial Services will act as primary liaison with examiner
  • MedAmerica Financial Services amends and updates all plans to comply with any future regulatory changes

Contact Chris Renner at (800) 842-2808 or at rennerc@medamerica.com and find out how easy it is to implement these small physician group retirement plans.







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