💰 The Hidden Goldmine: Retirement Plans for Locums

How independent physicians and clinicians can use advanced retirement plans to save six figures on taxes — legally.

🌎 Locum Freedom, Meet Financial Power

If you’re working as a locum tenens provider, you’ve already unlocked one kind of freedom — control over your time and where you work.

But there’s another kind of freedom most locums overlook: financial control.

Because as an independent contractor, you don’t just earn income — you have the ability to design your own retirement plan and decide how much tax you pay this year.

🩺 Why Locums Have a Unique Tax Advantage

Unlike W-2 employees, locums are paid as 1099 contractors.

That means you can:

• Set up your own business entity (LLC or S-Corp)
• Deduct business expenses
• Contribute to tax-advantaged retirement accounts that can shelter massive amounts of income from taxes

In short, you’re both the doctor and the employer — and that opens doors to advanced planning that regular employees can’t touch.

💎 The Goldmine: Advanced Retirement Plans

1️⃣ SEP IRA

A simple, powerful plan for self-employed locums.

You can contribute up to 25% of your net income, capped at $69,000 for 2024.

There are no ongoing filing requirements and setup takes minutes — a great first step.

2️⃣ Solo 401(k)

A Solo 401(k) offers both employee and employer contributions, allowing higher savings potential.

For high-income locums, this structure can mean up to $76,500 in combined contributions (including catch-ups if over 50).

Bonus: It can be paired with a Roth component for future tax-free withdrawals.

3️⃣ Cash Balance Pension Plan

This is where the real magic happens.

A Cash Balance Plan (a type of defined-benefit plan) lets you contribute well into the six figures — often over $200,000+ annually, depending on your age and income.

It’s ideal for established locums earning $250K+ who want to drastically reduce current-year taxes.

Example:

A 45-year-old locum earning $300K could:

• Contribute $69K to a SEP IRA or
• Combine a Solo 401(k) + Cash Balance Plan to deduct $200K–$250K in the same year

That’s potentially $80K+ saved in taxes.

📊 Why More Locums Don’t Do This

Many locums rely on generic CPAs who focus on basic returns — not proactive tax design.

If your accountant has never mentioned these plans, it’s not because you don’t qualify — it’s because they’re not specialized in locum finances.

That’s where MyPensionTree changes the game.

🌳 How MyPensionTree Helps Locums Build Tax-Free Wealth

At MyPensionTree, we specialize in custom retirement strategies for high-income independent professionals.

We help locums:

• Identify their ideal plan mix (Solo 401(k), SEP, or Cash Balance)
• Calculate potential deductions
• Handle plan setup and compliance — no stress, no guesswork

Our advisors design each plan to fit your income pattern — so you save more when you earn more.

“You heal patients. We heal your tax bill.”

💼 Start your free consultation at MyPensionTree.com and see how much you could contribute tax-free this year.

⚖️ Quick Comparison

Plan TypeMax ContributionBest ForComplexitySEP IRA$69,000New locums★☆☆Solo 401(k)$76,500Growth-minded locums★★☆Cash Balance Plan$200K–$300K+High earners★★★

💡 Final Thought

Retirement planning isn’t just about your future — it’s about what you keep today.

Every dollar you contribute is one less the IRS can claim.

Your locum income gives you freedom.

Your tax plan can give you wealth.