March 11, 2025

886 Views

Utilizing Your Nursing Retirement Benefits

Posted on March 11, 2025March 5, 2025 by Medical Solutions

Retirement benefits are a cornerstone of financial security for professionals across various fields, ensuring stability in the later stages of life. While traditional employment often comes with structured retirement plans, the landscape for travel nurses is unique.

Understanding the nuances of travel nurse retirement benefits, is essential for those pursuing this dynamic career path. After all, choosing a travel nursing career is about more than the short-term lucrative opportunities you’ll have—it’s an opportunity to build a financial foundation for travel nurses at the beginning of their careers and those close to retirement.

Do Travel Nurses Get Retirement Benefits?

Travel nursing offers a blend of professional growth and personal adventure. Benefits such as competitive pay, flexibility, and the opportunity to explore diverse healthcare settings are well-known. However, when it comes to nursing retirement benefits, the offerings can vary significantly based on the staffing agency or healthcare facility, the terms of the contract, and the nurse’s employment status.

Nursing Retirement Benefits

401(k) Plans

Many staffing agencies recognize the importance of retirement planning and offer 401(k) plans to their travel nurses. These plans allow nurses to contribute a portion of their income pre-tax, potentially reducing taxable income for the year. Some agencies, such as Medical Solutions, offer immediate enrollment in their 401(k) plan, with company matching available after six months or 500 hours of service. This structure ensures that even with the transient nature of travel nursing, professionals can steadily build their retirement savings.

403(b) Plans

Travel nurses employed by nonprofit organizations, such as certain hospitals or educational institutions, may have access to 403(b) plans. These plans function similarly to 401(k)s, allowing for pre-tax contributions and potential employer matches. It’s advisable for nurses to inquire about the availability of such plans when considering assignments with nonprofit entities.

Individual Retirement Accounts (IRAs)

Given the variability in employer-sponsored retirement benefits for nurses, many travel nurses opt to establish Individual Retirement Accounts independently. Traditional IRAs offer tax-deferred growth, meaning taxes are paid upon withdrawal, while Roth IRAs involve contributions with after-tax dollars, allowing for tax-free withdrawals in retirement. In 2025, the contribution limit for IRAs is $7,000 per year, with an additional $1,000 catch-up contribution allowed for those aged 50 or older.

Key Considerations for Travel Nurses

Vesting Periods: Some retirement plans have vesting periods, requiring employees to work for a specified duration before gaining full ownership of employer contributions. Understanding these timelines is crucial, especially for travel nurses whose assignments may be short-term.
Portability: Opting for portable plans ensures that nurses can continue their retirement savings seamlessly, regardless of changes in assignments or agencies. To determine if the plan is portable, nurses should look for those that allow rollovers, have minimal restrictions, offer immediate or short vesting, and provide contribution flexibility.
Financial Planning: Beyond employer-sponsored plans, comprehensive financial planning is vital. Utilizing tools like Health Savings Accounts (HSAs) can offer tax advantages and serve as an additional means to save for future medical expenses, complementing retirement savings.

Additional Travel Nurse Benefits

Beyond retirement plans, travel nurses often enjoy a suite of other benefits:

Health Insurance: Many agencies provide comprehensive medical, dental, and vision insurance starting from the first day of the assignment.
Housing Stipends: Travel nurses may receive housing accommodations or stipends, allowing flexibility in choosing living arrangements.
Bonuses: Sign-on and referral bonuses are common, providing additional financial incentives.
Continuing Education: Support for further education and professional development is often available, enabling nurses to advance their careers while on assignment.

Consider exploring opportunities with reputable agencies like Medical Solutions for a comprehensive overview of the benefits offered.

While the structure of retirement benefits for registered nurses may differ from traditional roles, numerous options are available to ensure financial security in the future. By proactively engaging in financial planning and selecting assignments with favorable benefits, travel nurses can enjoy a fulfilling career without compromising their long-term financial goals.

If you’re ready to shape your own career path and explore how to best maximize your earnings—even in retirement, travel nursing with Medical Solutions might just be the opportunity that lets you have it all!

Find Your Next Travel Nurse Assignment with Our Job Board!

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By Miles Oliver

October 15, 2023

3112 Views

Exploring Part-Time Travel Nursing for Retired Healthcare Professionals

Posted on October 15, 2023October 15, 2023 by Miles Oliver

While many people see retirement as the promised land, it’s common to get bored quickly — in fact, one survey found that retirees said retirement was “boring” and “lonely” only a year after stopping work. They felt working part-time would give them purpose, help them get out of the house, and meet new people.

As a nurse, you’ve had a significant impact on people’s lives, and you might wonder if you can still make a difference without committing to long-term work.

There’s a perfect solution that can help you get some extra money during retirement and continue to use your nursing skills to help others. Rather than taking a permanent job, you can be a travel nurse and take as much time between assignments as you like — essentially working part-time during retirement.

What is part-time travel nursing, and how can you get started? Here’s what you need to know.

What Is Part-Time Travel Nursing?

We should be upfront and let you know that during an assignment, you’ll probably be working full-time hours. However, most travel nursing assignments last between six and 13 weeks; once the assignment is over, you’re free to move on.

You don’t have to take another assignment until you’re ready. That means you could easily work for a few months, then relax and travel in the area for a bit, and then take another assignment in another area — creating a part-time working life for yourself full of travel and adventure.

Leveraging Your Existing Experience

Nursing requires a host of unique and valuable skills, and you can use those skills in retirement to continue to make a difference as a part-time travel nurse.

For example, you understand patient privacy, medical care, how to soothe people who are upset, and how to communicate clearly. You can continue to leverage these skills to make extra money and impact people’s lives during your temporary nursing assignments.

Don’t feel like you need to have had a 30-year career in nursing to be an effective travel nurse. Even with just a few years of experience, you can use the skills you’ve gained to make a difference in medical facilities around the country.

The Many Benefits of Travel Nursing

Why consider travel nursing in retirement? One of the many benefits is the ability to travel and see new places. Many people want to travel but feel they can’t afford to. Traveling as a nurse allows you to make a nice income in your new area, which gives you the ability to explore and enjoy the restaurants, activities, and amenities local to you.

Another benefit, of course, is making some extra money. Many Americans worry about not having enough money in retirement, and being a part-time travel nurse can help you add to your bank account and improve your financial security.

Travel nursing also gives you a lot of flexibility. You accept an assignment and work that period of time, and then you have the opportunity to take time off to relax, recharge, and enjoy your retirement. When you start to feel the itch to be more active again, you can accept another assignment — in the same area or in a new one.

How to Make Part-Time Travel Nursing Work For You

It’s important to ensure that part-time travel nursing fits into your life rather than feeling like you have to compromise for the job. After all, you’ve worked hard for a long time, and now it’s time to enjoy your life!

Consider getting a hybrid or other eco-friendly vehicle so that as you travel for different assignments, you won’t break the bank on gas, and you’ll have a more positive impact on the planet. Also, make sure you take care of your health, including making sure you get enough sleep and are able to use mindfulness to manage stress.

Interested in a travel nursing job? Our job board is a great place to search for assignments, and if housing is an issue, our housing page can help. It’s time to make a difference!

If you are a new travel nurse or looking into becoming a travel nurse:

START HERE

Travel Nurse Guide: Step-by-Step (now offered in a PDF Downloadable version!)

By Marichelle Jamelo

July 12, 2022

2512 Views

Retirement Savings to Consider For Travel Nurses

Posted on July 12, 2022December 27, 2023 by Marichelle Jamelo

401(k) PLANS AND IRAs IN 2022

Unless you’re fortunate to have parents or mentors to teach you how to retire financially independent early on, you’re like the rest of us who learned later in life. It isn’t until we land a nursing job that we discover there are different retirement vehicles, such as employer-sponsored 401(k) plans and IRAs, also known as Individual Retirement Accounts.

The truth is that nurses are experts in medicine, not finances, and it’s ok if you’re hearing the terms 401(k) or IRA for the first time. This article will cover the basics to be better prepared when talking with a financial representative or advisor. And no matter where you are in life, it’s never too soon or too late to start planning for retirement!

WHAT IS A 401K PLAN?

According to Investopedia, a 401(k) plan is a retirement savings or investment vehicle offered throughout the US. It is one of the most recognized retirement plans because many American employers provide it to their employees.

A percentage of your pre-taxed paycheck will go directly into this retirement account. As an incentive, an employer may match a portion of your contribution. A 401(k) contains investments such as stocks, bonds, and mutual funds that help your money grow. You can choose how you want your money invested. You can also consult with your 401(k) plan company representative.

REQUIREMENTS

Start date

Your employer will specify when you can join the plan. For example, you may be able to participate on the first day of the calendar year following the completion of the required year of service.

Years of service

Most plans require 1 to 2 years of service before participating in a 401(k) plan. Some employers determine your eligibility using hours served. Check with your employer’s HR department for details.

Ownership

You may be required to put in one year of service with your employer to be considered 100 % vested. What this means is that what you contribute with your own money is yours, but vesting applies only to the portion of your retirement contributions that your employer matches.

BENEFITS OF A 401(k)

You control your money

You have the flexibility to increase or decrease your contributions at any time. You also can be as aggressive or as conservative as you want.

Employer matching

Your employer may offer to match a percentage or all of your contributions. What your employer matches is essentially free money.

The contribution limit in 2022 for nurses under the age of 50

According to CNBC, the maximum amount you can contribute in one year is $20,500, which is $1000 more than in 2021.

A higher catch-up contribution in 2022 for nurses ages 50 and over

Nurses over age 50 are eligible for catch-up contributions into their 401k. You can contribute additional money up to $6,500 above the $20,500 yearly limit.

Tax advantages

You contribute with pre-taxed dollars, which lowers your taxable income. This means that you may pay less in taxes at the end of the year. Your money also grows tax-deferred, and you don’t pay taxes on it until you retire.

Easy payroll deductions

Having your money automatically deducted from your paycheck makes saving effortless. It’s like how the saying goes, “out of sight, out of mind.”

Portability

The money you contribute to and earn in your 401k is yours and can go wherever you go. For example, if you switch jobs, you can roll it over to your new employer’s 401k plan, roll it over to another tax-deferred retirement plan, or do nothing and leave it with your old employer. You choose! Be sure to check with a financial advisor to see what would be the best option for you.

A 401(k) is a great option to start investing in if you haven’t already. But what if the travel agency you work for doesn’t offer a 401(k) plan? The good news is that a 401(k) plan is not the only option. Another option is an Individual Retirement Account, or IRA can be an option.

WHAT IS AN IRA?

An IRA is a type of retirement savings account that has tax advantages. You can open an account on your own at almost any financial institution, such as a bank, investment company, or brokerage firm. There are two main types of IRAs a Roth IRA and a Traditional IRA.

ROTH IRA REQUIREMENTS AND BENEFITS

Eligibility

You can contribute to a Roth IRA if your income is below a certain level. More specifically, your modified adjusted gross income and you’re filing status will determine if you are eligible. You can check the IRS website for more information. Please consult a financial representative or advisor for more information about your eligibility.

Ownership

Your Roth IRA is yours. You have the flexibility to increase or decrease your contributions at any time up to the maximum contribution limit per year. You also can be as aggressive or conservative as you want.

Contributions

You make contributions with after-tax money. In other words, you use money from your paycheck to fund your Roth IRA. Therefore, there is no immediate tax benefit for contributing.

The contribution limit in 2022 for nurses under age 50

The contribution limit is $6,000 a year if you’re under age 50. Contribution limits typically change every 1 to 2 years.

The contribution limit in 2022 for nurses ages 50 and over

If you’re age 50 and older, you can contribute up to $7,000 a year. Contribution limits typically change every 1 to 2 years.

Taxes

Contributions into a Roth IRA are not tax-deductible.

Withdrawals

A required minimum distribution (RMD) states that you must start to withdraw from your retirement account each year at a certain age. However, there are no required withdrawals until after the owner’s death.
If you’re 59 ½ or older and the account is at least five years old, you can withdraw your money tax-free and penalty-free. Other qualified distributions can be tax-free as well. Please consult with a financial representative or advisor for more information on what is considered a qualified distribution.
Early withdrawals before 59 ½ are taxed as ordinary income, and there is a 10% penalty by the IRS. There are certain instances you can withdraw without being penalized. Consult with a financial representative or advisor for more information.

Growth is tax-free

Your money grows tax-free. Roth IRAs continue to grow through compounding even during the years you can’t contribute.

TRADITIONAL IRA REQUIREMENTS AND BENEFITS

Eligibility

Anyone with earned income can contribute to a Traditional IRA but with income restrictions that differ from a Roth IRA. Please consult a financial representative or advisor for more information about your eligibility.

Ownership

Your Traditional IRA is yours. You have the flexibility to increase or decrease your contributions at any time up to the maximum contribution limit per year. You also can be as aggressive or as conservative as you want.

Contributions

There are some ways you can fund a Traditional IRA.

You can contribute after-tax dollars, but you have to inform the IRS that you’ve already paid tax on those dollars. Please consult with your tax preparer or tax lawyer for more information.
You can roll over other retirement plans, such as a previous employer’s 401(k) plan.

Contribution limits in 2022 for nurses under age 50

The contribution limit is $6,000 a year if you’re under age 50. Contribution limits typically change every 1 to 2 years.

Contribution limits in 2022 for nurses ages 50 and over

You can contribute up to $7,000 a year. Contribution limits typically change every 1 to 2 years.

Taxes

Contributions to a Traditional IRA can be tax-deductible. The IRS website explains when you’re allowed to claim your contributions as a deduction on your taxes. Please consult with your tax preparer or tax lawyer for more information.

Withdrawals

A required minimum distribution (RMD) for a Traditional IRA starts at age 72. Therefore, you must begin withdrawing from your Traditional IRA at age 72. There is a penalty for withdrawing after age 72.
You can withdraw at age 59 ½ or older without restrictions or penalties. The IRS will treat your withdrawals as ordinary income, and it will be taxed.
Early withdrawals before 59 ½are subject to taxes and a 10% penalty. There are certain instances you can withdraw without being penalized. Consult with a financial representative or advisor for more information.

Growth is tax-deferred

Your money will grow tax-deferred. Any earnings you receive on your investment can produce gains of their own, and this type of cycle repeats itself having the potential to make more money. You don’t pay taxes on the growth until you withdraw money in retirement.

The goal is to empower you with some basic information about 401(k)s and IRAs. The good news? You don’t have to be an expert. That’s what financial advisors are for! So remember, no matter where you’re at in your traveling nursing career, you’re in the driver’s seat.

We hope you found these tips for retirement savings for travel nurses helpful.

By Lirika Hart

December 14, 2021

12847 Views

Retirement after Being a Nurse: What I Miss the Most

Posted on December 14, 2021January 16, 2023 by Lirika Hart

Growing up, I already knew that I would pursue nursing as a career. My grandmother was a nurse, which is partly why I chose to follow that path. I also loved caring for people, and I knew that nursing was my life calling. I started working as a nurse in the early 80s when nursing was simple, and the nurse-patients ratio was not as crazy as it is today. After 40 successful years in my career, I finally downed my tools and called it a day. I can’t really say that I longed for the day I would retire because I totally loved what I did. But, after 40 long years, the long hours, night shifts, and the heartbreaks of losing patients, my retirement was a welcome move. Now I’m enjoying my golden years taking care of my grandchildren, traveling, and volunteering once in a while in my community. Nevertheless, looking back at my years as a nurse, I’m nostalgic about so many things.

Making a difference

Nursing is a career that is so rewarding. I remember the pride I felt every time I gave a reassuring word to my patients that they would get better. The smile on their faces and those of the family members reminded me of the importance of impacting peoples’ lives positively. Of course, it was not always that patients were lucky to go home back to their families. When tragedy hit, I count it as a blessing that I was there to hold the hands of the patient’s loved ones and offer them emotional support. To this day, the thought that I made a difference in many peoples’ lives gives me inner peace.

Learning new things

The medical field evolves at quite a rapid pace. I witnessed so many changes from uniforms to innovations and new technologies. The most notable change I remember is the emergence of remote patient monitoring technology. Back in the day, patients needed to be hospitalized for a long time. The agony of coming in for appointments was too much, especially for elderly patients with mobility issues. Then came the technology where patients received care from wherever they were. The ability to age in place for these patients was just amazing. I miss how these changes used to keep me on my toes. I loved the challenges and the fact that I never stopped learning until a few years to my retirement.

Mentoring young nurses

This is something I still do for young nurses in my community. But, I will never forget the scared faces of young nurses the day they stepped into a hospital. The first time they lost a patient who they had made a connection with and how the crazy shifts took a toll on them. I’m glad that I was there to give them guidance and the mentorship they needed. The fact that I helped mold nurses who became excellent at their work is something that I look back on with pride.

Life lessons from the elderly

I worked with the elderly a few years into my nursing career. Those were the times when taking care of older people was real work. We had to lift them physically from their beds to their chairs and vice versa. The work was backbreaking, but the experience was out of this world. I learned so many life lessons at a young age from my patients. Lessons that I can say shaped my general outlook in life. The experience also grounded my love for older people. Even right before my retirement, I still loved to sit at their bed and just listen to their wisdom.

The meaningful connections

I still say that I met the most amazing people in my life in the line of my nursing career. I made meaningful connections with my colleagues. I loved the teamwork. Even during crazy shifts, I could feel the support of the team for each one of us. We excelled as a team in every department and hospital I worked with. How efficiently we managed to work even in challenging times is something I treasure and look back on nostalgically.

Conclusion

Giving my best years to a noble career that I totally enjoyed is something that I will never regret. I experienced the good and the bad, but they all worked together to make me the person that I am today. So, I miss it all: caring for patients, the teamwork, special moments with patients, the life lessons, mentoring young nurses, and so much more.

We hope you enjoyed this article on retirement after travel nursing. If you were a travel nurse but are now enjoying retirement, comment below and tell us how retirement is for you.

Are you looking for your next travel nurse assignment? Click here to view our job board. Need housing for your next assignment? Click here to search our housing page.

By Honza Hroch – CreativeNurse

April 14, 2019

24234 Views

Income Sources Available for Nurses During Retirement

Posted on April 14, 2019May 6, 2021 by Honza Hroch – CreativeNurse

Throughout you career as a nurse, chances are that you’ll probably have the opportunity to partake in a variety of retirement plans either by setting up one yourself or by working for different employers.

Some of the major areas capable of creating income for you when you retire will be discussed in detail:

401(k)

This is a plan established by your employer which enables you to have some money removed from your salary automatically and put into the plan. Many travel nurse agencies will match a percentage of the amount you deposit. This makes a 401K a great option for nurse retirement income as travelers.

401(k) plans permit you to put off paying your taxes pending when you begin to make withdrawals except if your employers offer a Roth option in which taxes are paid up front. In addition, some 401(k) plans allow you borrow funds from your plan assets however, you must wait to clock 59.5 years before you will be granted access to the money. If for any reason you wish to make some withdrawals before the age of 59.5, there are additional tax penalties that must be paid. Understanding the plan fully is very vital as well as knowing that taxes are only deferred to the future when not paid up front.

Pension

Luckily for some employees, employers set up a pension for you where money is paid in monthly. A pension provides an income stream in retirement and is also a wonderful addition to every account you own. A pension account is hugely beneficial but only a few companies still provide pensions, most of them don’t. There are lots of decisions to make prior to getting your pension. More often than not, you must decide if this income stream will last throughout your lifetime only or if you’d like to include your spouse in the plan. Unfortunately for travel nurses, pensions aren’t a viable option for nurse retirement income.

IRA

This is an individual retirement account which can be created and you get to deposit funds into it provided that you earn an income. There are limits on income which determines if you qualify to put in a contribution that is deductible. The IRA is very similar to 401(k) in that it has a Roth option which allows you deposit money into the plan after taxes have been paid and then grants you access to withdrawals that are free from being taxed in the future.

Social Security

Here’s how social security works; while working, you are paying money into the collection of funds continuously which entitles you to receive funds from the program every month when you retire. The age at which you can begin your social security income varies and the later you begin to withdraw, the higher you can earn. The standard age of retirement to earn benefits from social security is 66 years however, withdrawals can be made as early as 62 years or as late as 70.

Annuities

Annuities are very similar to pension and also a great means of generating a lifetime income stream for those without pensions. This comprises an accumulation and distribution phase where money grows and an amount is paid out monthly to the annuitant on the plan. The sum of money paid out is dependent on the amount of money accumulated inside of the plan and also on annuitant’s age.

Real estate

Real estate can also serve as another source of income when the income gotten from rent is more than the mortgage paid or if the mortgage has been paid off completely. This income stream will keep bringing in money for you and your family pending when you make a decision to sell off the property. Real estate that generates income is great provided that you’ve got the energy required to care for the property or you can employ somebody to help manage it for you.

Regular investment account

Having a regular investment account in addition to IRA and 401(k) can be of huge benefits. A general investment account is not affected by tax rules and is built in the conventional retirement plans. When you have some money invested outside of the plans that qualify for tax, it makes it possible for you to withdraw money before age 59.5 with no tax penalty. It will also provide you more flexibility around planning your tax and around when you are ready to retire.

Cash Value inside of life insurance

In addition to the death benefit, several permanent life insurance policies have a cash accumulation account which grows with time. The cash accumulation inside of life insurance policies grows on a tax postponed basis and although its growth is not as quick as money invested in the stock market, it’ll make a wonderful addition to your retirement plan. The assurances behind some of these policies give one the confidence that no market corrections will happen within the policies and so we can establish a more predictable future.

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Variable annuities and their underlying variable investment options are sold by prospectus only. Investors should consider the investment objectives, risks, charges and expenses carefully before investing. This and other information are contained in the prospectus or summary prospectus, if available, which may be obtained from your investment professional. Please read it before you invest or send money.

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By The Gypsy Nurse

October 3, 2017

53934 Views

Make an Informed Choice: 401(k)s and IRAs for Travel Nurses

Posted on October 3, 2017May 12, 2021 by The Gypsy Nurse

Making informed choices on investments as travel nurses often get overlooked.

Gypsy Nurses, your travel nursing career provides a tremendous amount of freedom and variety; you can explore new places, meet new co-workers, and control many aspects of your daily routine. However, as much as you may love being a Gypsy Nurse, that doesn’t mean you’ll want to do it forever.

Retirement goals are significant to travel nurses who look forward to spending more time with loved ones and a slower, more relaxing pace. So, you need to plan for retirement sooner rather than later to help ensure you get there and enjoy it!

Consistent Funding is KEY

Most retirement planners agree that it’s not the amount but regular, consistent funding that’s the key to successful retirement savings.

Some quick math: You might be surprised at just how much you can save with a steady plan.

For example: if you’re 25 years old and contribute $50 a paycheck with 26 paychecks per year, at a retirement age of 65, your retirement account balance could be worth $277,692. Increase that contribution to $60—that raises the potential balance to $333,231. These scenarios assume a very conservative 7% rate of return on your investment and are by no means a guarantee, but it’s important to understand the impact proper planning can have. While it’s certainly better to start saving early, understand that it’s also never too late to start saving for retirement – don’t give up if you’re an “older Gypsy” and haven’t started – now is the time!

Choosing the correct retirement vehicle is also critical in your planning.

With many agencies touting their 401(k) plans as retirement savings vehicles, you also need to take a hard look at what these plans can mean for you and your specific situation. The 401(k) plans the agencies are marketing often sound very attractive, yet if you take some time to read the fine print, the reality may surprise you.

In fact, after interviewing financial experts regarding 401(k) and IRAs as options for travel nurses, we found that a traditional IRA may be the smarter choice than a 401(k) for most travel nurses. Why? An IRA provides a convenient, effective, hassle-free way to manage your retirement account, regardless of who your employer is.

Here are some basic facts and realities of 401(k) and IRA plans we pulled together to help you sort through the noise out there:

Overview of IRAs and 401(k)s

Traditional IRA and 401(k) plans are the most popular types of retirement savings accounts that let the individual make “tax-deferred” contributions to the account. Tax-deferred means that you are not required to pay Federal income taxes on the money contributed to the savings account, but you’ll have to pay taxes on it later when you withdraw it upon retirement.

Investment companies typically administer these accounts so that the employee can invest the money in any number of available investment vehicles. All investment vehicles have some degree of risk associated with them and varying rates of return. Similar options are available for both 401(k)s and IRAs.

401(k) Matching Myths

Fact:

Many travel nurse staffing firms often hype the “matching” component of the 401(k) plans they offer. This means the agency will match the contribution up to a predetermined amount, dollar for dollar. For example, the agency could contribute $1 for every $1 that the employee contributes, up to 3% of their annual salary.

Traveler Reality:

Unfortunately, these firms rarely mention that most travel nurses don’t work at one agency long enough to meet the “vesting” requirements for matching funds. A “vesting period” is the period before the employer contributions are actually owned by the employee and can often be years long. For example, if the agency has a 2-year vesting period and you switch agencies after 1 year, you will forfeit the $1 for $1 employer’s match. These vesting periods are often unrealistic for travel nurses because they may change companies to secure specific job assignments.

Additionally, some agencies fail to make you aware that there is a “wait” period that requires some time frame of continuous employment before you can participate in the 401(k) program as well as any matching benefits. You may not even be permitted to take advantage of 30 – 90 days out, nearly the length of the assignment.

Retirement Plan Management 101

Fact:

Since you may decide to switch agencies over the course of your career, you may quickly end up with several 401(k) accounts that require attention. Managing these diverse accounts can get cumbersome as well as expensive. All of them will have some administrative fee associated with them. You can “rollover” the previous 401(k) to the 401(k) of your new agency, and you can also cash out or transfer to a traditional IRA.

Traveler Reality:

Many agencies don’t mention that additional fee are associated with certain actions that quickly lower your investment balance. For example, there are fees to transfer money out and taxes and penalties to cash out of your 401(k). The IRA for a retirement vehicle provides all the tax benefits of the 401(k) as well as the flexibility to fund it no matter which agency you work for or how many times you change; you carry it with you regardless of your employer or career choices. This means less paperwork, and it also avoids fees, both internal and external, for administration and transfer that are incurred if you have a 401(k).

Making Sense of Contribution Caps

Fact:

There is an $18,000 annual contribution limit (note: some plans have a “catch up” component that enables those over 50 years of age to contribute more) to the amount of money you can contribute to a 401(k) plan. In addition, there will often be a limit to the amount an agency will match in their program that’s dramatically lower than $18,000. Furthermore, there are investment limits to an IRA account. This is based on several factors, including your income. In general, the limit for IRA contributions set by the IRS is $5,500 for the 2017 tax year, with an additional $1,000 contribution allowed if you’re over 50.

Traveler Reality:

Data suggests that the IRA contribution caps do not impact most travel nurses. Most travel nurses don’t reach the maximum amount in their typical investment behavior. For example: using our $50 per paycheck example, this adds up to $1,300 for the year. It’s important to clearly understand if the cap is a practical issue before giving up all the benefits and flexibility of an IRA account.

The Gypsy Bottom Line – IRAs are a Better Choice for Most Travel Nurses

Many travel nurse staffing agencies are vigorously marketing their 401(k) plans, but these are filled with rules and restrictions that quickly diminish the overall value and convenience of a 401(k) and can make them poor choices as an investment vehicle for most travel nurses.

IRAs are a better retirement funding choice for most travel nurses. Here’s why—most IRAs provide:

Ownership: you can take it with you if you change employers with no paperwork
No waiting period
100% vested on day one
Automatic payroll deduction even if you switch agencies
Options to save on a tax-deferred basis
Simplified management
Plans that can stay with you for the long term
The ability to minimize fees

It’s possible to put your retirement within reach. Most importantly, our advice for travel nurses is to start saving as soon as possible. Carefully think about financial goals, and seek an agency that offers payroll-deducted IRAs.

We hope you found this information helpful. The Gypsy Nurse welcomes your comments, insights, or experience with these retirement plan options. Please share your comments here below – we would love to hear from you!

NOTE: The Gypsy Nurse is committed to serving the needs of today’s travel nurses. Our goal is to provide topical information and general guidance to our community. This information is not intended to replace that of a trained financial advisor. We strongly suggest that you consult with a certified professional to discuss your specific circumstances, retirement goals, and options.

Do Travel Nurses Get Retirement Benefits?

Nursing Retirement Benefits

Key Considerations for Travel Nurses

Additional Travel Nurse Benefits

Find Your Next Travel Nurse Assignment with Our Job Board!

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Navigating the Future for Travel Healthcare Professionals Seeking Assignments in 2024

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What Is Part-Time Travel Nursing?

Leveraging Your Existing Experience

The Many Benefits of Travel Nursing

How to Make Part-Time Travel Nursing Work For You

If you are a new travel nurse or looking into becoming a travel nurse:

Travel Nurse Guide: Step-by-Step (now offered in a PDF Downloadable version!)

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Taking Care of Your Health While on the Move as a Travel Nurse

First Time Experiences as a New Travel Nurse

Tips for Flying with Pets

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401(k) PLANS AND IRAs IN 2022

WHAT IS A 401K PLAN?

REQUIREMENTS

BENEFITS OF A 401(k)

WHAT IS AN IRA?

ROTH IRA REQUIREMENTS AND BENEFITS

TRADITIONAL IRA REQUIREMENTS AND BENEFITS

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Emergency Fund for Newbies

Budget-Friendly Travel Tips for Travel Nurses on Assignment

Financial Decisions, Short-Term Debt and Retirement Plans for Travel Nurses

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Making a difference

Learning new things

Mentoring young nurses

Life lessons from the elderly

The meaningful connections

Conclusion

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Witches, Nurses, and Midwives

Five Ways to Help You Along Your Journey, and Find that “Attitude of Gratitude”

Why it’s Important for Travel Nurses to Continue Dating

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401(k)

Pension

IRA

Social Security

Annuities

Real estate

Regular investment account

Cash Value inside of life insurance

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4 Easy Finance Tips for Busy Travel Nurses

What to Consider When Buying a Vehicle as a Traveling Nurse

Financial Challenges that Traveling Nurses Face

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Consistent Funding is KEY

Choosing the correct retirement vehicle is also critical in your planning.

Overview of IRAs and 401(k)s

401(k) Matching Myths

Fact:

Traveler Reality:

Retirement Plan Management 101

Fact:

Traveler Reality:

Making Sense of Contribution Caps

Fact:

Traveler Reality: