Dave Hansen

In the past few years I have heard of an increasing number of physicians and dentists who are using 419 plans to stash thousands of dollars away on a pretax basis. When I first heard about 419 plans, I was interested to see how an insurance company could claim to allow an individual to shelter thousands of dollars while at the same time participating in a profit-sharing plan or 401(k) plan. My curiosity stopped shortly after I found problems with the plan. It also raised concerns in my mind when I found that insurance companies were the main providers of these plans. Perhaps a closer look at 419 plans will help those who are currently participating or considering doing so to think twice about getting involved.