Nurses: Stop Letting Your Retirement Money Disappear When You Switch Jobs

Hey there,

Last week, a nurse named Sarah messaged me. She had a problem that keeps me up at night.

She'd been working at the same hospital for three years. Every paycheck, she put money into her 403(b). Then she switched to a travel nursing agency for better pay.

Six months later? She had no clue what happened to that retirement money.

Was it still growing? Could she add to it? Did she lose her employer match when she walked out those hospital doors?

Sarah's not alone. Most nurses have no idea what happens to their retirement money when they switch jobs. And it's costing them thousands.

Here's everything you need to know about retirement accounts as a nurse. Plus how to protect your money when you move to your next job.

The Truth About Nurse Retirement Accounts

Most nurses will have 2-3 different retirement accounts during their career. Why? Because the nursing world gives you different retirement plans depending on where you work.

• Hospital nurses get 403(b) plans

• Agency and private practice nurses get 401(k) plans

• Travel nurses often get nothing

• Smart nurses open their own Roth IRAs no matter what

Each account works differently. Each one has different rules. When you don't know these rules, you lose money.

Your Guide to Nurse Retirement Options

If you're 50 or older: Add an extra $7,500 to the 403(b)/401(k) limits. Add $1,000 to IRA limits.

Pre-Tax vs. After-Tax: What It Means

Pre-tax works like this: You put in $300. Your taxes go down by $300. If you're in the 22% tax bracket, you save $66 in taxes right now. But you'll pay taxes when you take the money out later.

After-tax (Roth) is different: You put in $300 of money you already paid taxes on. It grows tax-free for years. When you retire and take out $50,000, you pay zero taxes on it.

Which is better? If you think you'll make more money when you retire, choose Roth. If you think you'll make less, choose pre-tax.

Most nurses under 35 should pick Roth. Your earning power usually peaks in your 40s and 50s.

What Happens When You Leave Your Job

This is where nurses lose money. When you switch hospitals or agencies, you have three choices:

Option 1: Leave It Where It Is

Good: Easy. No paperwork.

Bad: You can't add more money. You might pay high fees. You'll forget about it.

Best for: Accounts over $5,000 that you want to ignore.

Option 2: Move It to Your New Job's Plan

Good: Keeps everything in one place. You can keep adding money.

Bad: Not all jobs let you do this. You're stuck with their investment choices.

Best for: Nurses going from one hospital to another.

Option 3: Move It to an IRA (Smart Choice)

Good: You control everything. Lower fees. More choices.

Bad: You have to manage it yourself.

Best for: Most nurses who want to grow their money.

Warning: Always ask for a "direct rollover." If you take the money first, the IRS will tax you 20% plus penalties. That's expensive.

The Vesting Trap That Costs Nurses Money

Your money is always yours. But employer match money? That's different.

Here's how most hospital schedules work:

Real example: You put in $200 every month. Your hospital matches $100 every month. After 18 months, you leave for a travel job.

• You keep: All $3,600 you put in

• You lose: Most of the $1,800 match money

Before you quit any job, ask HR: "When do I keep all the employer match money?"

Sometimes staying a few extra months puts thousands more in your pocket.

Real Numbers: How Much Nurses Can Save

Let's say you're 28 and make $75,000 a year. You put 6% into your 403(b) ($375 monthly). Your hospital matches 3% ($187 monthly).

Here's what happens over time:

The math is simple. Start early. Put money in every month. Don't leave free money on the table.

Even small amounts grow into big money over time.

Which Account Should You Use?

If you work at a hospital with a match:

1. Put in enough to get the full match (it's free money)

2. Open a Roth IRA and put in $7,000 yearly

3. If you have more money, go back to the 403(b)

If you're agency or travel with no match:

1. Max out a Roth IRA first

2. If your agency has a 401(k), use it to lower your taxes

If you're PRN or per diem:

1. Roth IRA is your best choice

2. Think about a SEP-IRA if you make really good money

The Big Mistake Most Nurses Make

Don't just put money in and forget about it. Most retirement accounts put your money in safe investments that barely grow. That means your money grows super slowly.

For nurses under 45: Put 80-90% in stock funds. You have time to handle ups and downs.

For nurses over 45: Start moving toward 60-70% stocks and 30-40% bonds.

Easy rule: Put your age as a percent in bonds. If you're 30, put 30% in bonds and 70% in stocks.

Warning Signs to Watch For

High fees eat your money: If your 403(b) charges more than 1% per year, it's too expensive.

Bad investment choices: Some hospital plans only offer expensive products. If that's you, just put in enough for the match. Then use a Roth IRA for everything else.

Long vesting schedules: If your employer match doesn't vest for 5+ years, think about that when you pick jobs.

Money sitting in cash: Some plans put your money in accounts that don't grow. Check where your money is invested.

What to Do Right Now

1. Log into your retirement account today. Look at your balance and investments. Check for fees.

2. Ask HR about your match and vesting. Get it in writing.

3. Open a Roth IRA if you don't have one. Fidelity, Vanguard, and Schwab are all good.

4. Set up automatic payments. Pay yourself first, before you spend the money.

5. Find your old retirement accounts. If you have old 401(k)s or 403(b)s, think about moving them.

Coming Soon: Tools Made for Nurses

We're building calculators just for nursing careers:

• Retirement Planner: Shows exactly how much you need to save based on your salary and where you live

• Job Switch Calculator: Compares total pay between different jobs, including retirement benefits

• Student Loan vs. Retirement Calculator: Should you pay off loans fast or invest? We'll show you the math.

Everything in simple words. Everything based on real nurse salaries. Everything free with Map My Pay.

Bottom line: Your retirement money is too important to guess about. Know your choices. Understand the rules. Make your money work as hard as you do.

Until next time,
The Map My Pay Team

P.S. Follow @mapmypay on Instagram for quick money tips that work for nurses.