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As an optometrist—especially a practice owner—you face real liability exposure from both your professional work and your business. So how well are your retirement accounts and investments actually protected if something goes wrong? 

In this episode, we walk through the different layers of liability protection available to ODs and dive into exactly which retirement and investment accounts are shielded from creditors, which ones aren't, and where the common gaps and misconceptions are.

What You'll Learn

• Four common layers of liability protection available to optometrists (entities, insurance, titling, and federal/state law)
• Why umbrella insurance is one of the most common gaps in OD insurance planning
• How ERISA law protects 401(k) and cash balance plans—and why it's the gold standard
• Why solo 401(k) plans do NOT carry the same ERISA protection (a common misconception)
• How SEP IRAs and SIMPLE IRAs fall short on liability protection compared to full 401(k) plans
• How Traditional and Roth IRAs are protected in bankruptcy (and the current dollar limit)
• What happens to liability protection when you roll a 401(k) into an IRA—and a best practice for keeping those dollars separate
• How HSAs, taxable brokerage accounts, and 529 plans are (or aren't) protected
• Steps ODs should take now to review their liability exposure

Key Takeaway

Not all retirement accounts are created equal when it comes to liability protection. ERISA-covered plans like 401(k)s and cash balance plans offer the strongest, unlimited federal protection—making maxing those contributions both a tax strategy and a liability strategy. 

But accounts like solo 401(k)s, SIMPLE IRAs, and traditional/Roth IRAs don't carry that same blanket protection, and the gaps are highly state-dependent. Understanding where your dollars sit and how they're protected is an important part of your overall financial plan.

Resources

• Submit your questions for upcoming Listener Q&A episodes: OptometryWealth.com/podcastquestion
• Reach out: [email protected]

Want a more proactive approach to your planning?

You can schedule a no-commitment introductory call to discuss what's on your mind financially and learn how we help optometrists navigate those same decisions nationwide.

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The Optometry Money Podcast is dedicated to helping optometrists make better decisions around their money, careers, and practices. The show is hosted by Evon Mendrin, CFP®, CSLP®, owner of Optometry Wealth Advisors, a financial planning firm just for optometrists nationwide.