Retire Smarter: Your Guide to the Florida Health Sciences Center 403(b) Retirement Plan

For those serving on the front lines of healthcare, planning for retirement can feel like a distant priority—until it isn’t. Fortunately, the Florida Health Sciences Center 403(b) Plan offers a thoughtful structure designed to support your long-term financial well-being. Whether you’re early in your career or approaching retirement age, understanding the mechanics of this plan is an important step in making your retirement vision a reality.

At D.R. Harris & Co., we work closely with healthcare professionals to align their retirement strategies with their broader financial goals. In this post, we break down key features of the plan—vesting, employer contributions, fees, and account consolidation—to help you approach your financial future with greater confidence.

Understanding Vesting: When Retirement Savings Become Yours

Vesting refers to how much of your retirement account is truly yours to keep, especially regarding employer contributions.

• Immediate Vesting: You’re immediately vested in your personal contributions and the organization’s safe harbor matching contributions—plus any investment earnings on those funds.

• Three-Year Cliff for Other Contributions: Other employer contributions follow a 3-year cliff vesting schedule. You become 100% vested after three years of credited service.

• Special Vesting Conditions: Regardless of tenure, you are automatically 100% vested if you:

  • Die while employed,

  • Become disabled,

  • Reach early retirement age (55) while employed.

• Transferred Employees: Employees transferred to Academic Medical Group, Inc. effective January 1, 2022, are fully vested in all employer contributions.

• Credited Prior Service: Time served with certain predecessor employers counts toward vesting.

  
  

These provisions reflect a plan designed to reward loyalty but also to safeguard participants under life-changing circumstances.

Employer Contributions: A Strong Incentive to Participate in the Florida Health Sciences Center 403(b)

Matching contributions are one of the most effective ways to accelerate retirement savings—and the Florida Health Sciences Center 403(b) Plan delivers.

• Safe Harbor Match: The plan offers a dollar-for-dollar match on the first 4% of eligible compensation you contribute, plus 50 cents on the dollar for the next 2%.

• Fixed Contribution: The organization contributes an additional 0.5% of eligible compensation for every participant.

• Discretionary Contributions: While possible, no discretionary contributions were made for the 2023 plan year.

• Eligibility Requirements: To receive employer contributions, you must:

  • Be at least 21 years old,

  • Complete one year of service,

  • Work at least 1,000 hours and remain employed through year-end (exceptions apply for death, disability, or reaching normal retirement age).

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This structure not only encourages saving but also rewards consistency and long-term employment.

Investment Options and Fees: Tools for Personalized Planning

Fee transparency and investment flexibility can make a significant difference in long-term portfolio performance.

• Schwab Personal Choice Retirement Account® (PCRA): This optional self-directed brokerage feature opens the door to a broad universe of investments beyond the core plan menu—including mutual funds, ETFs, and individual stocks. It’s a strong option for those who want more control and potentially lower costs.

• Fee Awareness: While overall plan fees are reasonable, it's wise to evaluate the costs associated with using the PCRA and ensure they align with your investment strategy.

  
  

Knowing your options—and the cost of those options—can help you make the most of your retirement plan.

Account Consolidation: Simplifying Your Financial Life

Many professionals accumulate multiple retirement accounts over time. Consolidating them into your 403(b) plan can help:

1. Reduce Complexity: Fewer accounts mean fewer statements and less administrative hassle.

2. Clarify Strategy: It's easier to manage asset allocation and risk when everything’s in one place.

3. Ensure Eligibility: Confirm with the plan administrator that your former accounts are eligible for rollover.

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If consolidation aligns with your financial plan, initiate a direct rollover to avoid taxes and penalties. Once funds arrive, make sure they’re appropriately invested.

Working With D.R. Harris & Co.: Partners in Your Financial Journey

At D.R. Harris & Co., we understand the unique financial pressures healthcare professionals face—from long hours and demanding schedules to planning for retirement with limited bandwidth. Our firm provides fiduciary, client-centered advice tailored to your personal and professional goals.

While this article is educational in nature, we welcome conversations with healthcare professionals who want to better align their retirement planning with a broader financial strategy. Whether you're seeking investment oversight, tax-smart retirement distributions, or a full financial plan, our team is here to help guide the process with clarity and care.

Visit www.drharrisandco.com to learn more.

Important Disclaimer

This article is intended for educational purposes only and does not constitute financial, legal, or tax advice. We are not your financial advisor and you are not a client of D.R. Harris & Co. unless you and D.R. Harris & Co. have both signed a written advisory agreement. We encourage you to conduct your own research and consult with your own financial, legal, or tax advisors before making any financial decisions based on the information you read in this article.