For the first 20 years of his private internal medicine practice, Marc Leavey, MD, took a pass on funding an IRA and obtaining the tax deduction that comes with it. The cost of raising four children and putting them through college simply demanded too many resources and there was little left for retirement.
“I basically said to myself I didn’t need to worry about IRAs and that it could wait,” says Leavey, who practices with Lutherville Personal Physicians in the Baltimore, Maryland area. “I’m paying for that now. If you’re just starting out, start planning for retirement on the first day you open your office.”
Leavey did see the light in 1995, when he merged the practice into a larger group The group had a 401k plan, and Leavey has been contributing, pre-tax, ever since. Now in his mid-60s, however, he knows his nest egg would have been much bigger had he started saving earlier.
Many physicians understand Leavey’s situation. As next month’s tax-filing deadline looms, however, there are a few steps physicians can still take to affect their 2015 returns, in addition to getting a jump on the 2016 tax year...
This story will also be featured in the March 10 issue of Medical Economics