Dentist Advisor Match

Dentist Retirement Calculator

Most retirement calculators ignore the largest asset on most dentists' balance sheets: the practice itself. This tool models two things — your retirement portfolio and your practice equity at sale — and combines them into a single picture. Run Part 1 alone, or add Part 2 if you own a practice.

Part 1: Retirement portfolio projection

Enter your current situation. The calculator uses a 7% real return and the 4% rule (25× desired annual spending = the nest egg you need).

2026 solo 401(k) cap: $72,000 total (employee deferral $24,500 + employer profit-sharing)

Part 2: Practice equity at sale (practice owners)

If you own a dental practice, the sale proceeds may be your largest retirement inflow. Add your practice details to see how it changes the picture.

Typical sale prices. Individual dentist buyers pay 65–80% of trailing annual collections. DSO and PE buyers pay 4–10× EBITDA (EBITDA is roughly 20–30% of collections). The multiple you receive depends on EBITDA margin, buyer pool, and practice type. See the practice valuation calculator for a three-buyer scenario comparison.
65–80% for individual buyer; 80–120%+ for DSO/PE
Typically 70–85%; goodwill taxed at 20% LTCG + 3.8% NIIT = 23.8%2

How the math works

Your projected portfolio is the sum of two compounding streams:

  1. Future value of existing savings: Current balance × (1.07)years
  2. Future value of annual contributions: Annual contribution × ((1.07)years − 1) / 0.07

Both use a 7% real return — the S&P 500's historical real return after inflation. Working in real terms keeps all values in today's dollars, which is why your desired spending input doesn't need an inflation adjustment.

Your target is 25× desired annual spending (the standard expression of a 4% safe withdrawal rate). $180K/year in retirement requires a $4.5M nest egg.

Why 7% real instead of 10% nominal? The ~10% figure is the historical S&P 500 nominal return — before inflation. Planning in nominal dollars creates the illusion that a "$10M portfolio" in 30 years is the same as $10M today. Using 7% real keeps everything in today's purchasing power, so your output numbers are directly comparable to your current income.

For the practice equity section, the calculator estimates federal-only after-tax proceeds. Goodwill (the largest component) is a capital asset and qualifies for long-term capital gains rates plus the 3.8% Net Investment Income Tax for high earners — a combined 23.8% federal rate. Equipment and non-compete payments are ordinary income, typically taxed at ~32% for a dentist in the year of sale.

The dentist contribution stack

The calculator defaults to $66K/year — near the 2026 solo 401(k) cap for someone earning $350K. But that's the floor, not the ceiling. The dentist who layers a cash balance plan on top retires 5–10 years earlier than the one who doesn't.

Vehicle 2026 annual contribution (age 45, $400K net income) Notes
Solo 401(k) employee deferral $24,5001 +$8,000 if age 50–59/64+; +$11,250 if age 60–63
Solo 401(k) employer profit-sharing ~$47,500 25% of W-2; combined cap $72,000 (2026)4
Cash balance plan (defined benefit) $100K–$150K Separate from 401(k); contribution grows with age
HSA (family HDHP) $8,7503 Triple tax advantage; invest long-term
Backdoor Roth IRA (self + spouse) $15,000 $7,500/person (2026); watch pro-rata rule
Total possible annual tax shelter $196K–$245K+

Adding a cash balance plan at $120K/year to an existing $66K/year 401(k) strategy creates an additional $120K annuity. Over 15 years at 7%, that's roughly $3.1M in additional future value. See cash balance plans for dentists and the solo 401(k) guide for setup details.

A realistic example

Dr. A, age 45, solo practice owner. Nets $400K/year. Has $520K in a solo 401(k). Contributing $66K/year. Practice does $1.4M in collections. Wants to retire at 63 on $180K/year.

Portfolio projection (18 years at 7%):
  • $520K grown at 7% for 18 years: $1.76M
  • $66K/year annuity over 18 years: $2.24M
  • Portfolio total: $4.00M
Practice equity at sale (75% of collections, 80% goodwill):
  • Gross proceeds: $1.05M
  • Federal tax (goodwill at 23.8%, equipment at 32%): ~$267K
  • Net proceeds: ~$783K
Combined: $4.00M + $0.78M = $4.78M. Target: $180K × 25 = $4.5M. Surplus: ~$280K.

Now add a cash balance plan at $120K/year: $120K/year for 18 years at 7% = additional $4.08M in future value. Combined total: ~$8.86M — nearly 2× the retirement target. The difference between maxing only the 401(k) and stacking a cash balance plan is ~$4M over 18 years.
Your numbers tell a different story.
A fee-only advisor who works with dental practice owners can model your full picture — practice valuation, tax stacking strategy, S-corp salary optimization, and the cash balance plan setup that fits your age and income. Get matched free →

Related tools and guides

Get a personalized retirement plan

This calculator is a starting point. A fee-only financial advisor who specializes in dental practices can run a complete plan — including practice valuation, tax stacking, disability risk, and the S-corp salary methodology that maximizes your 401(k) room.

Sources

  1. IRS, 401(k) limit increases to $24,500 for 2026, IRA limit increases to $7,500 — 2026 employee deferral $24,500; total §415(c) cap $72,000 per IRS Notice 2025-67.
  2. IRS, Topic No. 409 — Capital Gains and Losses — 20% LTCG rate for high earners; 3.8% NIIT under IRC §1411 on net investment income above $200K single/$250K MFJ. Practice goodwill qualifies as a §1231 capital asset at sale.
  3. IRS Rev. Proc. 2025-19, 2026 HSA and HDHP Limits — self-only $4,400; family $8,750.
  4. Fidelity, Solo 401(k) Contribution Limits 2025 and 2026 — confirms employer profit-sharing up to 25% of W-2 compensation; combined $72,000 cap for 2026 under IRS Notice 2025-67.

Tax values verified against 2026 IRS guidance. Calculator uses 7% real return and 4% withdrawal rule as planning assumptions — actual returns vary. Practice sale tax estimates are simplified federal-only approximations; state taxes, installment sale treatment, and personal goodwill allocations not included.