Quote from NurseArielle4life
New nurse here, wondering about retirement plans. What are some retirement plans available, do hospitals offer pensions? Since I am still young I am interested in being a travel nurse, how would that work towards saving money for my retirement? If I decide to change jobs can I move my 401k plan to my next job? Any feedback and advice are appreciated!
Most hospitals have done away with pensions. Most are now 401K/403B in which you put money into your retirement plan and they will match up to around 3% (you put in 3% and they put in 3%. When you leave a hospital, you have two choices: Roll the money over into your new employer's retirement plan or start an individual IRA and put the money from the first hospital into that account.
Ask your employer if your retirement plan at work has a Roth option.
Traditional: Any contributions (you or your employer) are not taxed until you start withdrawing the money in retirement. You pay taxes on the money you withdraw each month. You will pay taxes on both the money that you and your employer contributed, plus any increase in value. If you contributed $100k and the value is $500k when you retire, you will pay taxes on the whole $500k as you withdraw it.
Roth: You pay taxes on any contributions to your retirement plan each paycheck. When you retire, you pay no taxes on the money you withdraw. If you contributed $100k through out your work life and the value is $500k when you retire, the only taxes that you had to pay is on the $100k when you had the money put into your retirement plan each paycheck when you were working.