In this episode of The Dental Boardroom Podcast, host Wes Read, CPA CFP®, shares key financial and tax strategies for dental practice owners. He covers retirement plans (401(k), SEP IRA, Simple IRA, defined benefit/cash balance plans) and explains how to maximize contributions while managing employee costs and staying compliant. Roth IRAs and backdoor Roth conversions are also discussed for tax-free growth.

Wes advises a disciplined investment approach, highlights the risks of speculative investments, and explains how to evaluate debt, use tax deductions, and leverage payroll strategies for family members. He also explores fringe benefits, state-level tax breaks, and practical ways to improve practice profitability, like raising fees and moving toward fee-for-service models.

Finally, he emphasizes automating savings, debt payments, and retirement contributions to secure long-term financial success. This episode gives practice owners practical tools to reduce taxes, boost cash flow, and grow wealth inside and outside their practice.

Key Points

• Understand the differences and trade-offs among 401(k), SEP IRA, Simple IRA, and defined benefit/cash balance plans.
• Use Roth IRAs and backdoor Roth conversions to secure tax-free retirement growth.
• Avoid risky, illiquid investments inside retirement accounts—stick to disciplined, diversified portfolios.
• Evaluate debt payoff vs. investing by considering interest rates, volatility, and financial goals.
• Use payroll strategies (kids, spouses) to reduce taxable income and build long-term wealth.
• Document home office deductions and leverage allowable fringe benefits cautiously.
• Maximize savings with state-level pass-through entity tax deductions.
• Regularly raise UCR fees and consider transitioning to fee-for-service to boost profitability.
• Automate savings and contributions to build financial resilience and consistency.

Resources Mentioned

📄 Financial and Tax Strategies PDF