Pt 4 - How to Buy, Fund & Protect Your Business: Qualified Insurance Plans

A business masterclass series hosted by Tonya Venletta McPhearson (featuring J. Wesley Barrett from Grasshopper Bank and Kenneth King from Eastern Atlantic Group) Contact J. Wesley Barrett at jwesley.barrett@grasshopper.bank Contact Kenneth King at King_Kenneth@nlgroupmail.com Key Points & Timestamps [00:00] Valuation as an Asset & Risk Management: A business valuation acts as the bridge for funding and insurance [00:00]. Highlights four main risk exposures that can erode enterprise value: key person loss, transition friction, talent retention, and uninsured tax exposures [00:39]. [01:35] Retirement Solutions for Healthcare & Wellness: Kenneth King introduces retirement structures tailored for medical, wellness, and public health entities in partnership with National Life Group [01:35]. [01:54] 403(b) & 457(b) Plans: 403(b): Ideal for governmental hospitals, healthcare nonprofits, and institutions, offering pre-tax contributions and tax-deferred growth (with Roth options available) [01:54]. 457(b): Geared toward healthcare and public health entities, featuring direct payroll contribution control and immediate vesting [03:27]. Dual Plan Strategy: Combining a 403(b) and a 457(b) allows professionals to contribute to both simultaneously, doubling tax-favored deferrals during peak earning years [04:10]. [05:02] FICA Alternative (3121 Plan) for Locum & Seasonal Staff: Allows public health or government employers to bypass paying the 6.2% Social Security tax on part-time/seasonal workers by redirecting 7.5% pre-tax into employee-controlled retirement accounts [05:28]. [07:27] Simple & SEP IRAs for Wellness Practices: SIMPLE IRA: Features mandatory funding structures (3% match or 2% non-elective contribution) with low regulatory burdens [08:29]. SEP IRA: Perfect for private and solo practitioners, offering discretionary funding up to $72,000 (for 2026) with 100% tax deductibility [09:17]. [10:21] Solo 401(k) Plan for Independent Clinicians: Designed for solo practitioners without employees (excluding spouses) [10:21]. Bypasses complex non-discrimination testing oversight [10:45]. Allows contributions as both employee and employer, hitting limits up to $72,000 (for 2026) plus catch-up contributions, and includes a loan provision of up to $50,000 [12:23]. Concept Explanation: The Power of Dual Plans (403(b) + 457(b)) As detailed at [04:10], certain healthcare and public wellness organizations qualify to offer both a 403(b) and a 457(b) retirement plan simultaneously. What it means: Contribution limits for 403(b) and 457(b) plans are uncoordinated and independent of one another. Why it matters: Unlike standard corporate structures where max contribution caps apply collectively across similar accounts, eligible medical professionals can max out both plans at the same time. This effectively doubles their tax-advantaged savings capacity during their peak earning years, allowing them to shelter significantly more income from taxes. Insurance & Financial Services Disclaimer Insurance and financial products are subject to state licensing requirements and individual suitability. Availability of products varies by state. Tonya V. McPhearson is a licensed insurance broker (NY License #LA-1949570 — Life, Accident & Health). Information provided on this site is for general informational purposes only and does not constitute legal, tax, or financial advice.