Retirement/Investment Plans

[Voxel]

Do you know if hospitals usually provide 403B plans (non-profit equivalent of 401K) for residents? If I go from a transitional year at hospital A to a radiology residency at Hospital B, do I open a new 403B plan at hospital B? Anyone hear of matching incentives for 403B or is this against the tax codes? If this does exist, is this the exception or the norm. Also, I will be eligible to open up Roth IRAs since I will be making under the cap limit. How does one go about opening a Roth IRA?

Anyone know how the new IRS FICA exemptions for residents work? Specifically the ramifications of institution wide exemption vs individual exemption?

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[blotto geltaco]

Are you sure it is a 403B?

I am not familiar with those, just 401K's. I worked for an organization that was under county government and then non-profit auspices. We always had 401K.

Assuming they have a retirement plan, you will have to roll it over when you switch employers, probably unless the hospitals are under the same ownership or whatever. This is just a matter of paperwork.

I *think* you should have no problem starting a Roth IRA. Easy ways to do it can be found online at places like Vanguard (where my IRA is) and Fidelity. You will have to switch it in 4 years though, when you start making big bucks. If you don't there are penalties. The savings might not be that great between the two. With a regular IRA, you can deduct 2K per year now. This *might* be going up in the future.

It is wise to invest as much as you can now. If you are young then you can tolerate more risk if you are in it for the long haul. Nobody wants to become one of thsoe stereotyped doctors that can't manage money and blows it all away. Paying off debt, knowing your limits, wise investments ans sound professional advice can go a long way towards being financially secure. Especially since Social Security and Medicare will probably be all used up by the time we retire, lol.

 

[WSU02]

RAM, yes it is 403B, the nonprofit world's equivalent to the 401K. My husband's retirement plan is a 403B.

Voxel, some but not all hospitals offer 403Bs to residents, you'll have to check with your coordinators about that. As for matching $$$, it's not illegal to do so in 403Bs, otherwise my husband's place of employment would be violating the law. :wink:

As for opening a Roth, any brokerage firm would be glad to assist you (i.e. Etrade, PriceWaterhouse, etc.) by sending you the forms to fill out.

Kristi