The American Dream of working for 40 years, then retiring on Social Security and personal savings has become something of an illusion. You can�t count on Social Security to fund your retirement any longer because politicians have replaced the funds with IOUs.

As a safety net for Social Security, Uncle Sam offers you the opportunity to build retirement savings with tax-saving inducements. These inducements, broadly known as tax-qualified retirement plans (TQRPS), offer both you and your employees a tax deduction for contributions and tax deferral on the capital growth of contributions until retirement.

Most ophthalmologists establish defined contribution TRQPS for themselves and their employees. With these plans, employees bear the investment risk by making their own investment decisions. Types of defined contribution plans include 401(k) plans, IRAs, and Profit sharing and money purchase plans. When deciding on a plan, consider the following questions:

• How is the plan funded. Employer? Employee? Combination?
• What�s the maximum annual contribution? Are contributions mandatory?
• What are the employee eligibility requirements for participation?
• How long before employees have ownership in employer contributions?
• Does the plan require annual filing with the IRS or some other agency?