The Fix · Safe Harbor Redesign
Your plan returned your money. Taxed.
Every spring, thousands of practice owners get a “corrective distribution” — their own retirement savings mailed back, taxable, because their plan's design can't pass a fairness test its seller never ran. The letter says it's normal. It's normal for undesigned plans.
Source: Form 5500 (public record)
From a real Florida dental practice's public filing, 2024 plan year:
| Line item | Amount |
|---|---|
| Contributed by the owner | $20,818 |
| Returned as corrective distribution | $20,229 |
| Net retirement savings achieved | ~$0 |
The fix, in three lines.
- 01
A 3% safe-harbor contribution to staff removes the test entirely.
- 02
Your $24,500 is secured no matter what your team saves.
- 03
For newer plans, federal startup credits cover a large share of the cost — for some, the fix is better than free in year one.
Switched on by Dec 1 → this year doesn't have to end the same way
Fee: $2,500–3,500/yr flat
Flat fees. No asset charges. No revenue sharing.
Figures from public Form 5500 filings. Ranges until we see your census. Not legal or tax advice.