retirement benefits

[yadayadadude]

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Do residents have access to 401K plans? Any residency programs make matching contributions?

 

[docB]

Many have 403B plans which are analagous to 401Ks. My residency at a UC program had no matching.

 

[Fermi]

Do residents have access to 401K plans? Any residency programs make matching contributions?

I know from researching Northwestern's programs that they have a matching plan. This is one of the very few that I've seen. Most programs will allow you to make non-matched contributions to a tax-deferred retirement fund, but I'm not sure how this is much different than setting up your own IRA.

I'm really disappointed that more programs don't offer a matching plan. Most of us are 30+ years old during or even before residency, and many have families. You'd think they would do more to encourage physicians to be more money-savvy. We have a post-college degree and are signing a multi-year contract for full-time employment (in-training, to be fair) and we don't get access to any retirement benefits? That would be the exception in corporate America as well as academic institutions.

 

[SmittySC]

Do residents have access to 401K plans? Any residency programs make matching contributions?

It will vary from hostpital to hospital. The hospital that I am in training at offers 401K and matches 50 cents to each dollar. What is even better is that you become fully vested in 3 years. Even as an FP resident, I am going to be fully vested by the time I finish my residency. If the 401k is a benefit that is very important to you, then you need to ask about it at each program you interview at.

 

[yadayadadude]

Most programs will allow you to make non-matched contributions to a tax-deferred retirement fund, but I'm not sure how this is much different than setting up your own IRA.

It's different for people with working spouses. Roth IRAs are reserved for people below a certain income level (I think it's 160K for a married couple).

 

[yadayadadude]

Even as an FP resident, I am going to be fully vested by the time I finish my residency.

What does this mean? I thought "fully vested" had to do with a traditional pension?

 

[southerndoc]

My program has matching funds, although it's not 1:1. I contribute 6% of my salary and they contribute 3%.

Vesting is also in 401(k) and 403(b) funds. Some require only 2 years to be 100% vested. My program requires 5 years to be 100% vested. 25% at 2 years, 50% at 3 years, 75% at 4 years, 100% at 5.

Vesting simply refers to the amount of money that you can keep from your employer's contribution. Your contribution is always yours.

There is a difference between 401(k) and 403(b) in terms of malpractice issues. 401(k)'s are generally safe from any judgments, but an aggressive plaintiff can tap into your 403(b) to pay for any settlements or awards. 403(b)'s are best moved into traditional 401(k)'s or IRA's when you leave your employer for this very reason.

 

[Finally M3]

We don't have a matching program. We get a bonus (7% of our yearly salary) given to us in a lump sum that is supposed to go towards our retirement. Obviously, some people use it for other things

 

[GoPistons]

ARe there any programs that are offering the new roth 403b that is coming out next year?