LDA Journal - Louisiana Dental Association
LDA Journal - Louisiana Dental Association
LDA Journal - Louisiana Dental Association
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<strong>LDA</strong><br />
feature<br />
Jennifer Ballard, Account Executive, LA Deferred Compensation Plan<br />
LA Medicaid Providers: Increase Your Retirement Savings<br />
and Save Extra Tax Dollars<br />
Medicaid providers in <strong>Louisiana</strong> are considered<br />
“Independent Contract Workers” for the State<br />
of <strong>Louisiana</strong> and as such are allowed to participate<br />
in the <strong>Louisiana</strong> Deferred Compensation Plan (IRC<br />
Section 457). This plan allows for additional pre-tax<br />
salary deferral contributions up to certain annual<br />
limits. (The limits for 2007 are $15,500 and $20,500<br />
if age 50 and over.) Individuals are allowed to contribute<br />
the maximum to this plan in addition to contributing the<br />
maximum to any other type of retirement account<br />
(IRA, 401k, etc.).<br />
All Medicaid providers<br />
must receive compensation<br />
payable to their individual<br />
tax ID or social security<br />
number in order to be<br />
eligible as “independent<br />
contractors” in the<br />
<strong>Louisiana</strong> Deferred<br />
Compensation Plan.<br />
There is a short enrollment<br />
application that needs to be completed<br />
and submitted by fax or mail to LA Deferred<br />
Compensation in order to establish an account. Medicaid<br />
will pay LADCP directly until the physician has reached<br />
his/her annual limit. The money that has been sent to<br />
LADCP will not be included as taxable income to the<br />
physician for that calendar year.<br />
Once enrolled, participants may utilize Managed<br />
Accounts, the Plan’s default investment option. He/she<br />
may elect to opt out of the service and choose one<br />
or a combination of investment options that are available<br />
within the Plan. For more information on the Plan’s<br />
investment options, visit the Web site at<br />
www.<strong>Louisiana</strong>DCP.com.<br />
If you would like to enroll or have any questions,<br />
contact Jennifer Ballard at jennifer.ballard@gwrs.com<br />
or 225-926-8082, ext. 1009, or 800-345-4699, ext. 1009. t<br />
www.ladental.org<br />
Fall 2007 33