By Michael Kamali, MBA, ChFC, ChE – Doctor of Business Economics candidate
As a Fiduciary Financial Advisor for California Doctors & Dentists, I help high-income medical professionals reduce taxes, grow wealth, and protect assets in California’s challenging financial environment.
💸 Why California Doctors & Dentists Struggle with Taxes
Living in California means facing 13.3% state income tax plus federal taxes. High salaries don’t always translate into high take-home pay.
That’s why maximizing tax-advantaged retirement accounts is essential for doctors and dentists looking to secure their financial future.
🔑 The Three Retirement Accounts That Matter Most
1️⃣ Traditional IRA (Tax-Deferred Growth)
- How It Works: Contribute pre-tax income, grow tax-deferred, pay taxes on withdrawals.
- Pros: Tax deduction (if eligible), tax-deferred growth.
- Cons: Deduction phases out at higher incomes, RMDs at 73, taxable withdrawals.
Learn more: Traditional IRA Limits & Tax Rules in California.
2️⃣ Roth IRA (Tax-Free Growth—If You Qualify)
- Pros: Tax-free growth & withdrawals, no RMDs.
- Cons: Income limits: $146k (single), $230k (married).
Backdoor Roth IRA Strategy:
For high-income earners, a Backdoor Roth IRA in California bypasses income limits, offering tax-free retirement growth.
⚠️ California Twist: Roth conversions are taxed differently at the state level—expert guidance is critical.
3️⃣ SEP IRA (Ideal for 1099 Doctors & Practice Owners)
Perfect for self-employed doctors and practice owners:
- Contribution Limit: Up to 25% of income (max $69,000 for 2025).
- Tax Benefit: Lowers both federal and state taxable income.
- Ease: Simpler than 401(k), minimal IRS filing.
Learn More: SEP IRA for California Doctors & Dentists
🏥 Retirement Strategies for California Doctors & Dentists
If You’re Employed with a 401(k):
✅ Max out your 401(k).
✅ Add a Backdoor Roth IRA for tax-free retirement growth.
If You’re 1099 or Own a Practice:
✅ Open a SEP IRA in California for major deductions.
✅ Pair with a Backdoor Roth IRA for diversification.
If You Have Employees:
⚠️ Staff contributions must match your percentage.
🔑 Consider a Safe Harbor 401(k): Safe Harbor Plans Explained.
🔥 The Winning Formula
Here’s the stack high-earning doctors and dentists should follow:
1️⃣ Max out your 401(k).
2️⃣ Add a Backdoor Roth IRA.
3️⃣ Use a SEP IRA or Solo 401(k) if self-employed.
4️⃣ Partner with a Fiduciary Advisor for California Doctors who knows state-specific tax planning.
🎯 About Michael Kamali
I’m Michael Manoochehr Kamali, MBA, ChFC, ChE, a Doctor of Business Economics candidate and Fiduciary Financial Advisor for California Doctors & Dentists. I help medical professionals slash taxes, build wealth, and retire stress-free.
📍 LinkedIn: Michael Kamali
🌐 Website: www.CaFin.ai
📞 Call: (310) 541-1000
📅 Free Zoom/Google Meet Review: Open 7 days, 6 AM–10 PM.
✅ Internal Linking Plan for WordPress SEO:
Here’s how to implement links for maximum SEO boost:
Add an IRS external link for authority:
👉 IRS Retirement Plans Resource
Create supporting pages/posts:
Traditional IRA in California (URL: /traditional-ira-california)
Backdoor Roth IRA Guide for High-Earning Doctors (URL: /backdoor-roth-ira-california)
SEP IRA for California Doctors & Dentists (URL: /sep-ira-california)
Safe Harbor 401(k) for Practices with Staff (URL: /safe-harbor-401k)
Fiduciary Financial Advisor for California Doctors & Dentists (URL: /financial-advisor-california-doctors)
Add these links naturally in content (done above).
Cross-link these new posts back to this article (build a content silo).
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Disclosure Statement
The information provided in these materials is intended solely for educational and informational purposes and does not constitute financial, investment, tax, legal, or accounting advice. Nothing contained herein should be construed as a recommendation to buy, sell, or hold any security or investment product, nor as a guarantee of any financial outcome.
Readers are strongly advised to consult with their own qualified financial advisors, tax professionals, and legal counsel before making any investment or financial decisions. Every individual’s financial situation is unique, and professional guidance is essential to ensure that decisions are made based on personal circumstances and regulatory considerations.
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