Eastern Orthopaedic Association • 110 West Road • Suite 227 • Towson, MD 21204

Toll-Free: 866-362-1409 • Fax: 410-494-0515 • E-mail: info@eoa-assn.com • Web: www.eoa-assn.org

Winter 2013Editor: Scott D. Boden, MD

E A S T E R N O R T H O PÆ D I C A S S O C I A T I O N

Dear Colleague:

First of all, congratulationsto Henry Backe for a jobwell done this past year.He has provided our orga-nization with strong lead-

ership and along with his program chairJohn Kelly, put on an exceptional meetingat The Sagamore in Bolton Landing, NewYork this past June. The historic Sagamorewas the site of our 43rd Annual Meeting,and it was a great success, with over 300physicians attending. The site was a hit withfamilies as well, with Lake George provid-ing unsurpassed beauty and sunsets. TaraBacke organized a terrific social programthat was enjoyed by all. Dr. Kelly and hisprogram committee put together a terrific

scientific program, with 81abstract podium presenta-tions, 12 symposia, and 40poster presentations. A to-tal of 26.75 AMA category1 credits were thus avail-able. Dr. Backe gave athought provoking presi-dential address on evidence-based medi-cine, and Derek McMinn entertained uswith a memorable talk on hip resurfacing.There is nothing quite like British humor!Dan Pelino and Christine Kretz of IBMgave us insight into the Watson programand how it may help us care for patients inthe future. The EOA Jazz Band, led by BobRichards, did not disappoint, and HowardSteel was his usual self, strumming andleading us in song. Finally, John Kelly per-

President’s MessageDavid S. Zelouf, MD

formed a stand up routine that was trulymemorable; I’ve already booked him fornext year in South Beach.

The EOA remains a strong and viable re-gional orthopaedic association, with 818total members. Because of strongly attend-ed meetings, generous industry support,and a conservative but steadily growingportfolio, we continue to remain “in theblack.” This is noteworthy, especially con-

Continued on page 2

I N T H I S I S S U E

Membership Update p. 2

Call for Abstracts p. 3

E. Anthony Rankin, MD Honored p. 3

Meet the New Board Member p. 3

EOEF Report p. 4

Recap of the 43rd Annual Meeting p. 6

Thank You Annual Meeting Grantors p. 7and Exhibitors

Money Matters p. 9

Practice Management Advisor p. 10

Self-Assessment Exam at the Annual Meeting

The EOA is working extremely hard tobring a very valuable benefit to its membersand all attendees at the EOA Annual Meet-ing. The SAE (Self-Assessment Examina-tion) Team, chaired by Dr. John Richmond,is preparing a program that will provide 10SAE CME credits that are required for ev-ery doctor’s MOC (Maintenance of Certifi-cation).

In fact, EOA can help you navigate throughall of the necessary educational require-ments to satisfy your MOC obligations. Foreach three-year cycle, you need 120 Catego-ry 1 CME credits, 20 of which are SAEcredits. Your yearly EOA membership pro-vides over 40 Category I CME credits

through the complimentary Journal of Sur-gical Orthopaedic Advances, and the Annu-al Meeting, as well as 10 SAE creditsthrough the Exam. The first six years ofMOC requirements can be satisfied just byusing your membership benefits and partic-ipating in the EOA Annual Meeting!

A portion of the SAE program will be em-bedded in the Annual Meeting ScientificProgram. This means you can earn valuableCME credits while attending the meetingsessions and prepare for the exam at thesame time. So come to the Annual Meetingprepared to satisfy your MOC require-ments. The cost is significantly less forEOA members than other programs!

44th Annual MeetingOct 30 - Nov 2, 2013

Loews Miami Beach HotelMiami Beach, FL

EOA NEWS • Winter 2013 • Page 2

Eastern OrthopaedicAssociation

2013 Board of Directors

PresidentDavid S. Zelouf, MD

Merion, PA

First Vice PresidentDavid W. Romness, MD

Arlington, VA

Second Vice PresidentMark J. Lemos, MD

Peabody, MA

Immediate Past PresidentHenry A. Backe Jr, MD

Fairfield, CT

SecretaryJames T. Guille, MD

Pottstown, PA

TreasurerGeoffrey H. Westrich, MD

New York, NY

HistorianRobert P. Boran Jr., MD

Port Carbon, PA

Membership ChairKevin D. Plancher, MD

Greenwich, CT

Program ChairJavad Parvizi, MD, FRCS

Philadelphia, PA

Members-at-LargeMichael P. Bolognesi, MD

Durham, NC

Marc J. Levine, MDMercerville, NJ

John D. Kelly IV, MDPhiladelphia, PA

Managing DirectorE. Anthony Rankin, MD

Washington, DC

President’s Message continued

The Mission of the Eastern Orthopaedic Association is to promote high quality ethical care for musculoskeletal patients in the eastern region of the United States by providingeducational programs, fostering collegiality and supporting professional development among its members and physicians-in-training, and by influencing health care policy.

The EOA Mission

sidering the overall reduction in support formeetings in general by industry. To remainviable, the EOA has had to adapt. The in-dustry-sponsored luncheons have helped togenerate revenue and keep down meetingcosts to members. We are fortunate to haveTony Rankin as our managing director, andData Trace continues to provide outstand-ing managerial support. Dr. Rankin and theentire board will continue to explore newand innovative ways to generate revenuewhile not compromising our overall mis-sion.

Our biggest challenge is still growing ourmembership. The EOA board continues toevaluate ways to increase our membership.For our upcoming meeting in 2013, we planto offer an SAE/MOC program. We areevaluating other “value added” benefits thatour members may find beneficial. Theboard is also carefully evaluating our futuremeeting sites, choosing locations that areboth fun and family friendly. Please encour-age your colleagues to join. The EOA is aworthy organization that consistently pro-vides a high quality academic meeting in amost enjoyable setting. In 2012, we wel-

comed 89 new members. We are hopefulthat we can continue to grow our member-ship as we find more ways to add value.

The 44th Annual Meeting will be held at theLoews Hotel in South Beach, Miami fromOctober 30-November 2, 2013. Halloween2013 in South Beach should be memorable!Jay Parvizi, the 2013 Program Chair, and Iare already working on the program. Dr.Joseph Zuckerman has agreed to serve asmy Presidential Speaker, and I look forwardto a thought provoking talk. Bill Scheft, anoted author and comedy writer for Letter-man since 1991, has agreed to be our How-ard Steel lecturer. He is the author of threenovels, including his most recent, “Every-thing Hurts.” In addition, he has been nom-inated for 15 Emmy awards.

It is an honor to serve as your president thisyear. Please join me in continuing the mis-sion and traditions of the EOA. Thank you.

Sincerely Yours,

David S. Zelouf, MDEOA President

The Eastern Orthopaedic Association had818 members as of December 31, 2012.Eighty-nine new members were recruitedlast year. A special effort was made byboard members on renewal efforts to per-sonally contact anyone who hadn’t renewedby August.

In 2013, EOA will be offering a Self As-sessment Exam (SAE) at the Annual Meet-ing. As a result, the EOA Annual Meetingwill provide up to 20 CME credits and theopportunity to earn 10 SAE CME credits,as well.

Membership Update

EOA is continuing its efforts with residencytraining program directors to make sure allof the residents/fellows in the EOA territoryhave the chance to compete for the 15awards that EOA presents during its AnnualMeeting.

Stay tuned for more information on the newSAE program which will help with yourMOC requirements. Also, remember youcan obtain 24 CMEs through your compli-mentary Journal of Surgical OrthopaedicAdvances subscription.

EOA NEWS • Winter 2013 • Page 3

E. Anthony Rankin, MD Honored

E. Anthony Rankin, MDwas honored on Saturday,May 5, 2012 with Provi-dence Health Foundation’shighest honor, the AdvocateAward. He received theaward at the Providence

Hospital’s 2012 Gala held at the Interna-tional Trade Center in Washington, D.C.

Dr. Rankin has served as Chief of Orthope-dic Surgery at Providence since 1977 and isthe founder of Rankin Orthopaedic andSports Medicine Center. He was elected thefirst African American president of the

American Academy of Orthopaedic Sur-geons in 2008, and is also an EOA PastPresident and is currently Managing Direc-tor.

Providence Hospital has a long and impres-sive history in Washington, D.C. Charteredby President Abraham Lincoln in 1861 andfounded by the Daughters of Charity of St.Vincent DePaul, it is the longest continu-ously operating hospital in the Nation’sCapital. Providence is a health ministry ofAscension Health – a Catholic, missionfocused organization, and the nation’s larg-est nonprofit health system.

Meet the New Board Member

Kevin D. Plancher, MD,MS, FACS, FAAOS

Dr. Plancher has been ap-pointed to serve as the 2012-2013 EOA MembershipChair. He is an Associate

Clinical Professor in Orthopaedics at AlbertEinstein College of Medicine; an AttendingSurgeon in Orthopaedics at Beth at IsraelMedical Center and Lenox Hill Hospital;

and Fellowship Director-Sports Medicine –ACGME at Plancher Orthopaedics &Sports Medicine, PLLC.

He received his BS in biochemistry andchemistry from Trinity College and MS inphysiology and medical degree fromGeorgetown University. Dr. Plancher thenfollowed with a general surgical internship,residency and trauma surgery fellowship atBrigham and Women's Hospital. He also

The Eastern Orthopaedic Association willpresent its next Annual Meeting October30-November 2, 2013 at the Loews MiamiBeach Hotel in Miami Beach, Florida.EOA’s Annual Meeting is one of the pre-mier meetings for orthopaedists practicingin the East. The Scientific Program will be

developed to present timely reviews ofpractice-related techniques and clinical re-search findings in orthopaedic surgerythrough accepted key papers. Nationallyrecognized speakers will also be invited topresent at the Meeting.

We invite you to submit one or more ab-stracts for the meeting, as this is an excel-lent opportunity to present a paper to yourpeers. Each person may only make onepodium presentation. The submission dead-line is March 29, 2013. Abstract applica-tions may be submitted online through theEOA’s web site. Visit us at www.eoa-assn.org and click on the “Submit an Ab-stract” link.

2013 Call for Abstracts

completed fellowships in hand and micro-vascular surgery at The Indiana Hand Cen-ter and in shoulder and knee reconstruction,sports medicine at The Steadman HawkinsClinic.

Dr. Plancher has been an active member ofEOA since 1999. He is married with threechildren, Brian, Jamie, and Megan. In hisfree time he enjoys tennis, skiing, swim-ming, and guitar and trumpet music.

Important Dates

44th Annual MeetingOct 30 - Nov 2, 2013

Loews Miami BeachMiami Beach, FL

45th Annual MeetingOct 22-25, 2014

Ritz-CarltonAmelia Island, FL

EOA NEWS • Winter 2013 • Page 4

What a great year for the Eastern Orthopae-dic Education Foundation (EOEF). Thehighlight at the EOA Annual Meeting wasthe silent auction which turned into the Johnand Marie Kelly Auction. And what anauction! Marie Kelly organized the silentauction and did a fabulous job securing 15outstanding items for the auction to offer.We had over 80 participants bidding onthese 15 items and at the conclusion of thesilent auction we had raised $10,250. Notsatisfied with the result, Marie quicklytapped into her limitless resources and ac-quired the extremely sought after auctioneerand sometime surgeon Dr. John Kelly. Johnentertained the Founders’ Dinner attendeeswith humor and most importantly forEOEF, $2,400 additional contributions forthe 15 auctioned items. The grand total forthe auction was $12,650.

1) Troy Aikman Autographed Football –Donated by Dr. Bob Boran

Auction Final: $650 – Dr. Amar Ranawat

2) Lakefront Weekend Getaway for Twoat Bed & Breakfast on Smith Moun-tain Lake - Donated by Bob & CindyRichards

Auction Final: $600 – Dr. Jeff Lutton

3) One-week Stay at Condo in WildwoodCrest, NJ – Donated by John & MarieKelly

Auction Final: $1350 – Dr. William Gomez

4) 2-Night Stay at Loews Miami BeachHotel – Donated by Loews

Auction Final: $600 – Dr. John Richmond

5) Fenway Park During its 100th YearCelebration – Red Sox vs Tigers on7/31/12 - Donated by Dr. Mark Lemos

Auction Final: $390 – Dr. Bess Brackett

6) New York Mets vs Atlanta Braves on9/18/12 – Donated by Dr. Chit Ranawat

Auction Final: $300 – Dr. Jose Rodriguez

7) Da Vinci’s Vitruvian Man Print – Do-nated by Dr. Chit Ranawat

Auction Final: $200 – Dr. John Richmond

8) Persian Rug – Donated by Dr. JavadParvizi

Auction Final: $950 – Dr. Joshua Baumfeld

9) Matted Miro Print from The GalerieD’Orsay – Donated by The GalerieD’Orsay

Auction Final: $1100 – Dr. Bob Boran

10) Two Tickets to a 2013 Boston Red SoxGame – Donated by Dr. Richard Wilk

Auction Final: $550 – Dr. Tom Capotosta

11) Premier Set of Men’s Calloway Irons– Donated by Dr. David Zelouf

Auction Final: $950 – Dr. Marc Levine

12) Tickets to the 2012 US Open Men’sFinals on 9/9/12 – Donated by Dr.Henry Backe

Auction Final: $2,600 – Dr. Stephen Longe-necker

13) Tickets to the 2012 US Open Wom-en’s Semi Finals on 9/7/12 - Donatedby Dr. Henry Backe

Auction Final: $2000 – Dr. Kevin Plancher

14) Framed Photo of Lang Tang Range –Donated by Dr. Chit Ranawat

Auction Final: $200 – Marie Kelly

15) Max Scherzer Autographed Baseball& Display Case - Donated by the De-troit Tigers Organization

Auction Final: $175 – Henry Backe, Sr.

Another major contributor was the newEOEF Living Legacy Program which gener-ated $75,000. This program provides a lega-cy in the name of the grantor and can have a15x benefit to the EOEF over the initialcontribution. The EOEF would like to thankDr. Glen Barden, Dr. Scott Boden, Dr.Shepard Hurwitz, Dr. Chitranjan S. Rana-wat, Dr. David Romness and Dr. GeoffreyWestrich for their strong contribution toinitiate this program.

The EOEF contributes funds each year tohelp educate the EOA’s membership. Thisyear through the donation of EOEF, EOA

Eastern Orthopaedic Education Foundation Report

Please join us this year in supportingthe EOEF with your generous gift. TheEOA has made significant strides inthe last five years with the financialassistance of the EOEF and we want tocontinue growing and providing moremember benefits.

There are several vehicles throughwhich to give your tax deductible con-tribution including the EOEF LivingLegacy Program. If you would like tomake a significant gift to the EOEF,please call Dr. Chit Ranawat or ChuckFreitag at 866-362-1409 or simplysend your check to the EOEF today.

We appreciate your continued supportof the EOEF and would like to thank allof our membership for their magnifi-cent encouragement this past year.

Support EOEF

increased the number of learning opportu-nities at our Annual Meeting. EOA provid-ed resident and fellows $25,000 in awardsand subsidized their attendance at the EOAAnnual Meetings. EOEF is looking to pro-vide $10,000 more in resident awards forthe 2013 meeting. In addition to the AnnualMeeting educational events, EOEF fundsprovide 24 FREE CME’s for the EOAmembership via the Journal of SurgicalOrthopaedic Advances.

There are several vehicles through which togive your tax deductible contribution in-cluding the EOEF Living Legacy Program.If you would like to make a significant giftto the EOEF, please call Dr. Chit Ranawator Chuck Freitag or simply send your checkto the EOEF today.

We appreciate your continued support ofthe EOEF and would like to thank all of ourmembership for their generous contribu-tions this past year.

Register TodayEastern Orthopaedic Association’s

44th Annual Meeting

Register online at www.eoa-assn.org

October 30 - November 2, 2013Loews Miami Beach HotelMiami Beach, Florida

Approximately 20 CME credit hours

10 CME Self-Assessment Exam

3 half day sessions with free afternoons

Abstracts accepted online at www.eoa-assn.orgthrough March 29, 2013

EOA Welcomes its Special Guest New Jersey Orthopaedic Society

EOA NEWS • Winter 2013 • Page 6

The 43rd Annual Meeting was an enormoussuccess, with an excellent scientific pro-gram organized by Program Chair Dr. JohnKelly and the EOA Program Committee.Dr. Henry A. Backe’s Presidential Address,“Evidence-Based Medicine, Are We ThereYet” and Presidential Guest Speaker Dr.Derek J. W. McMinn’s presentation bothwere interesting and informative. The How-ard Steel Guest Lecturers from IBM, DanielS. Pelino and Christine M. Kretz, gave avery intriguing lecture on Watson, the com-puter from Jeopardy, and how it works.

The meeting kicked off with a fantasticWelcome Reception poolside overlookinggorgeous Lake George. Everyone enjoyed

the great food and the fabulous view, alongwith the chance to visit with old friends andcolleagues. The following evening beganwith a Sponsor and Poster Reception beforeeveryone went on their own to enjoy thefabulous Sagamore Resort. The meetingwas brought to a close with an extraordinaryFounder’s Dinner Dance that began with theEOA Jazz Band Reception on the patio, ledby Bob Richards, Jr. The EOEF Silent Auc-tion, which turned to a live auction led byJohn Kelly, added to the entertainment forthe evening.

It was a sensational meeting and we expressour thanks to all who attended. If youmissed it, view the 2012 Sagamore pictures

Recap of the 43rd Annual Meeting

on the EOA website (www.eoa-assn.org)and see what a great time it was!

We look forward to seeing you next year forHalloween at the Loews Miami Beach Ho-tel on Miami Beach, Florida, October 30-November 2, 2013!

43rd Annual Meeting • June 20-23, 2012 • The Sagamore • Lake George, NY

EOA NEWS • Winter 2012 • Page 7

The Eastern Orthopaedic Association would like to thank the grantors and exhibitors of theEastern Orthopaedic Association’s 43rd Annual Meeting. Without the unrestricted educational

support of the companies listed below, we would not have been able to provide this conference.

GOLDArthrex, Inc. - Grantor

Auxilium Pharmaceuticals, Inc.ConvaTec, Inc.

Stryker Orthopaedics - Grantor

BRONZECadence Pharmaceuticals, Inc.

CeramTec Medical ProductsConforMIS, Inc.

Smith & Nephew, Inc. - GrantorZimmer, Inc. - Grantor

COPPER

AcumedBiomet, Inc. - Grantor

DePuy MitekFerring Pharmaceuticals, Inc.

InnovaSurgicalMAKO Surgical Corp.

Sanofi BiosurgerySynthes

Grantor & Exhibitor Acknowledgements

3M Health CareAllMeds

AngiotechBBL Medical Facilities, Inc.

Captive RadiologyCarticept Medical, Inc.

CuraMedix, Inc.DePuy Orthopaedics, Inc.

DeRoyalDJO Global

EOS Imaging, Inc.Exactech, Inc.

Hologic, Inc.KCI-USA

Knee Creations, LLCMcKesson

Medical ProtectiveNuTech Medical

O.R. Specialties, Inc. / Adirondack MedicalOrtho-Preferred

ProScan Reading ServicesSI-Bone, Inc.

SRSsoftWright Medical Technology

EXHIBITORS

EOA NEWS • Winter 2013 • Page 8

Statements and opinions expressed in the advertisements and information regarding products or services herein are those of theauthor(s) and do not necessarily reflect those of the Publisher or the Association. The Publisher and Association do not assume anyresponsibility or liability for such material and do not endorse, guarantee or warrant any product or service advertised in this newsletter.

If you are like most Americans, you feelless secure about the U.S. economy. Cer-tainly, this is justified. Western Europeancountries have run out of capital, unem-ployment-based riots have broken out inthe streets of Great Britain, and the UnitedStates debt shield political debacle hascaused our government debt to be down-graded from “AAA” for the first time inhistory. For these reasons and many oth-ers, it is crucial that savvy investors, in-cluding physicians, understand that themarket volatility will continue and there-fore you should adjust your investmentbehavior accordingly. This article toucheson a few thoughts in this arena.

Investment Theory for DoctorsMost savvy doctor investors understandthat portfolio diversification is a key con-sideration to reducing some of the risk ofloss in a portfolio. In historically volatilemarkets, mitigation of loss is not a luxury– it is a necessity. Though most savvyinvestors who thought they were “ade-quately diversified” also lost almost halfof their portfolio value in 2008 and 2009,there is an explanation. Most investorswere diversified “within” the stock mar-ket with holdings in various sectors. Whatthese investors suffered was “marketrisk.” As the entire market came crashingdown, so did all investors within the mar-ket.

What many experienced investors don’tunderstand is that diversification need notbe limited to securities like traditionalstock and bond investments or bank de-posits. Proper diversification, especiallyin a highly volatile market like the one weare experiencing today, must also beacross investment classes and not justwithin a class (such as securities or realestate). A balance of domestic and foreignsecurities, real estate, small businesses,

commodities, and other alternative invest-ments would prove to be much less riskythan holding the majority of your invest-ments in real estate and securities (whichis what most doctors do).

Since most doctors who contact us areeither very successful already and want tofine tune their planning or want to knowthe secrets of the more financially suc-cessful, it may not come as a surprise thatmany of our physician clients have takena more active interest in surgery centers,medical office buildings, and otherhealthcare-related real estate. This strate-gy apparently contradicts the idea ofachieving portfolio diversification byavoiding any investments within thehealthcare arena. One strategy of portfo-lio diversification for doctors is to avoidall healthcare-related investments. Thetheory is that doctors already have somuch of their income related to healthcarethat they should not invest in healthcare-related investments. Unless a doctor has avery good reason to think that a particularcompany will excel in its arena, this theo-ry suggests that doctors typically avoidhealthcare stocks. For doctors who havethe ability to personally influence thesuccess of a surgery center or MediSpa,this is obviously an attractive investment.

Alternative InvestmentsFor those doctors who can’t build or par-ticipate in surgery centers or other profit-able healthcare investments, a popularinvestment strategy is to take advantageof different investment programs that arenot traded on a public exchange like theNew York Stock Exchange (NYSE). Non-traded real estate investment trusts, leas-ing funds, and oil & gas drilling programsare a few examples. As with any invest-ment, there are pros and cons for eachtype of offering.

Given recent market conditions, manyphysician investors have been attracted tonon-traded programs because they offer acertain level of stability. Most of theseprograms are sold to investors at a flatprice, for example $10 per share, duringthe offering period. An advantage to theseprograms is that their performance is notcorrelated with any particular market orindex, making them an additional form ofdiversification. Holding non-correlatedofferings can help reduce the “volatilityroller coaster” of a traditional portfolio.They should be an additional allocation inyour portfolio, not a substitute for properallocation.

Another significant benefit for physiciansin the higher income tax brackets (whichare sure to increase as government bail-outs and the upcoming budget ranges inthe multiple trillions) is the potential taxbenefit an alternative program can offer.Some programs offer tax deductions onthe initial investment. Others pay tax effi-cient dividends. Some programs offerboth. For example, there are oil & gasdrilling programs that offer tax deduc-tions on the initial investment due to in-tangible drilling costs AND taxdeductions on the program’s cash flowdue to depreciation & depletion allowanc-es. Real estate investment trusts’ & leas-ing funds’ dividends are often only partlytaxable to the investor. These tax efficien-cies vary by program and from year toyear.

Word of CautionIt is important to note that one of theadvantages of a non-traded offering isalso a disadvantage. There is typically nomarket for shares of these programs. Asan investor, you are expected to hang onto the security for the life of the invest-ment – which can be as long as 4 to 10

Investment Alternatives to Reduce Portfolio RiskJason M. O’Dell, CWMDavid Mandell, JD, MBAKim Renners, CPA (inactive), MBA

Continued on page 11

EOA NEWS • Winter 2013 • Page 10

It’s never too early to think about retiring.Even if you are still struggling to pay offyour medical school loans or wonderingwhere the money will come from to sendyour own children to college, retirementplanning is important. As a physician,you are probably well aware that peopleare living longer, more active lives. Itmakes sense to start as early as possibleto plan, save, and invest for what could bea very long retirement.

To assist you in your planning, here’s anoverview of tax-favored retirement plansthat may be practical for a medical prac-tice.

Defined Benefit PlanA defined benefit plan, usually referred toas a traditional pension plan, promises topay a specific monthly retirement benefitto participants for as long as they live.The employer has to make annual contri-butions to the plan that will be sufficientto fund the promised benefits, which maybe calculated based on a formula thatincludes such factors as age, years ofservice with the employer, and salary. Forexample, a pension benefit may be equalto a stated percentage of your averagesalary for the last five years of employ-ment times your total years of service.

One of the primary attractions of a de-fined benefit plan is that it permits highercontributions for participants who areolder since there is less time to fund thepromised retirement benefit. This can bea plus for physicians who may have heldoff starting a retirement plan until theirpractice became more firmly established.The maximum annual benefit that can befunded under a defined benefit plan iscurrently $200,000 (2012 inflation-ad-justed limit).

One potential negative associated with adefined benefit plan is that the regulatory,

filing and actuarial requirements are sig-nificant, making this type of plan relative-ly expensive to administer.

Opting for FlexibilityUnlike a defined benefit plan that promis-es a fixed retirement benefit to partici-pants, the benefits that a participant in adefined contribution plan receives at re-tirement will be determined by the partic-ipant’s individual plan account balance.This amount is based on employee oremployer (or both) contributions to theplan and account gains or losses. Maxi-mum “annual additions” (generally em-ployee and employer contributions) to adefined contribution plan account for2012 are $50,000.

There are several types of defined contri-bution plans. Some of the more commonones are:

● Profit Sharing PlansThis type of plan allows discre-tionary annual employer con-tributions.

● 401(k) PlansThis popular plan allows em-ployer contributions and em-ployee salary deferrals. The2012 elective deferral limit is$17,000, plus a $5,500 limita-tion on catch-up contributionsfor those age 50 or older.

Other Types of Retirement Plans

● SIMPLE IRA PlansA Savings Incentive MatchPlan for Employees can be anattractive option if you have100 or fewer employees andwant to offer employee pretaxsalary deferral contributions.Generally, SIMPLE plans havelow administrative costs and

start-up expenses compared toother retirement plans. Theyalso have minimal filing andcompliance requirements.

● Simplified Employee PensionIRA (SEP-IRA) PlansAs the employer, you canmake annual contributions foreach eligible employee that aregenerally tax deductible. How-ever, the SEP-IRA gives youflexibility to change theamount you contribute basedon your practice’s financialperformance. This type of flex-ibility allows you to conserveyour cash when practice reve-nue is in a downturn andresume contributions in yearswhen business improves.

Health Care Commentaries is providedby Somerset’s Health Care Team for ourclients and other interested persons uponrequest. Since technical information ispresented in generalized fashion, no finalconclusion on these topics should bemade without further review. For addi-tional information on the issues dis-cussed, please contact a member of ourHealth Care Team This document is notintended or written to be used, and cannotbe used, for the purpose of avoiding taxpenalties that may be imposed on the tax-payer.

Somerset CPAs, P.C.3925 River Crossing ParkwayThird FloorIndianapolis, Indiana 46240317.472.2200800.469.7206FAX 317.208.1200www.somersetcpas.cominfo@somersetcpas.com

Smart Retirement Planning for PhysiciansBrought to you by Somerset CPAs, P.C.

Statements and opinions expressed in the advertisements and information regarding products or services herein are those of theauthor(s) and do not necessarily reflect those of the Publisher or the Association. The Publisher and Association do not assume anyresponsibility or liability for such material and do not endorse, guarantee or warrant any product or service advertised in this newsletter.

years. This can make your investmentrelatively illiquid. In addition, these pro-grams are not without risk. You couldinvest in an oil and gas drilling programthat finds no oil. Sure you will get adeduction, but you may not get much ofthe initial money back. Like any otherinvestment class, some offerings are moreaggressive than others, and none makeany guarantee about future performance.

The Time is NowThere has never been a better time tofocus on investment risk management andtax reduction planning. For physician in-vestors seeking ways to diversify tradi-tional stock and bond portfolios andreduce portfolio volatility while possiblyreducing unnecessary taxes, non-tradedinvestments are an attractive alternative.Please contact the authors to see if alter-

native investments or other planningstrategies might reduce your investmentrisk, reduce your taxes by $5,000 to$500,000 annually, and increase the totalafter tax return of your portfolio.

Special Offer: To learn more aboutbuilding and protecting assets in a reces-sion, all readers are entitled to a FREECOPY (pay just $5 shipping and han-dling) for the authors’ book For DoctorsOnly: A Guide to Working Less andBuilding More. Call (877) 656-4362 oremail odell@ojmgroup.com.

David Mandell is an attorney, lecturer,and author of five books for physicians.Jason O’Dell is a financial consultant,lecturer and author of two books for phy-sicians. They are both principals of the

financial consulting firm O’Dell JarvisMandell LLC (www.ojmgroup.com).

DisclosureThis article contains general information thatis not suitable for everyone. The informationcontained herein should not be construed aspersonalized investment, legal or tax advice.There is no guarantee that the views andopinions expressed in this article will come topass or be appropriate for your particularcircumstances. U.S tax and state corporatelaw changes frequently, accordingly informa-tion presented herein is subject to changewithout notice. You should seek professionaltax, employee benefit and legal advice beforeimplementing any strategy discussed herein.For additional information about the OJMGroup, including fees and services, send forour disclosure statement as set forth on FormADV using the contact information herein.

Money Matters continued

EOA NEWS • Winter 2013 • Page 11

EOA Can Help You SatisfyYour MOC Requirements

For more information, or to order the Self-Assessment Examcall 866-362-1409 or visit www.eoa-assn.org

The Self-Assessment Examination material will be on the following topics:

20+ CME credits at the Annual MeetingSelf-Assessment Exam worth 10 CME credits

24 CME credits through a quarterly journal

2013 Self-Assessment Exam Available this Fall

Foot & AnkleArthroplastyTraumaSpine

Sports MedicineHandShoulder & Elbow

New Member Incentive

New members of the EOA will have theirmeeting fee in either of their first two years

of membership waived.Join the EOA and come to the Annual

Meeting free!

Do You Know a Qualified MD or DOOrthopaedic Colleague Who Is Not an EOA Member?

Apply formembership

online atwww.eoa-assn.org

or call866-362-1409

and ask for an application.

FreeMeeting

Registration!

►24 Free CMEs through the Journal ofSurgical Orthopaedic Advances

►A complimentary subscription to theJournal of Surgical Orthopaedic Advances

►Eligibility to participate in Ortho-Preferred®, a professional liabilityinsurance program exclusively fororthopaedic surgeons

►Diverse Annual Meeting program content

►Substantial member discounts to EOAannual meetings

►Registration fee discounts to other regionalsociety meetings

►Free subscription to the official EOAnewsletter

►Awards and professional recognition

Member Benefits

Completion of an accredited residency program andprivileges to practice as an orthopaedist in a local hospital

are the requirements for both MD and DO candidates.

Eastern Orthopaedic Association110 West Road, Suite 227Towson, MD 21204