Retirement Plans for Travel Nurses: Navigating Your Options 987839088534212 [9:30 AM] Katie Iglewski

Working as a travel nurse is rewarding and exciting. You earn good money and get to experience new places every few months. 

But remember, you most likely won’t be a travel nurse forever! You may not be ready to settle down yet, but you may decide to choose a different path one day.

Now is the time to prepare for your future — put some of the money you make to good use and start saving for your golden years.

Don’t wait until it is too late. Start planning now so you have everything you need when retirement comes.

Continue reading to learn more about creating your travel nurse retirement plan, including tips to give you peace of mind when the time comes to retire.

 

travel nurse retirement plan

 

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Retirement Plans for Travel Nurses: It’s Never Too Early To Begin

There is no age limit when it comes to figuring out the best retirement plans for travel nurses. Although it may seem like the perfect job for nurses under 30 who don’t have children, there are many travel nurses aged 40 and beyond. 

No matter your age, it’s never too early to start creating your nest egg! It’s no secret that some cities offer travel nurses a higher pay rate than others. The US Bureau of Labor Statistics (BLS) states that registered nurses average $86,070 a year, while travel nurses can earn between $84,882 and $107,251 annually.

You can do it all as a travel nurse:

  1. Explore the country
  2. Work with a diverse group of patients
  3. Connect with new people
  4. Earn an amazing salary 
  5. Advance in your career
  6. Save money for retirement 

Retirement experts often suggest saving ten times your pre-retirement salary so you can live on 80% of your pre-retirement annual income.

Have you ever heard about the 4% rule? 

The 4% rule is based on planning to withdraw 4% of the total you have saved each year to live comfortably. This percentage is figured to cover 30 years of retirement living expenses. 

 

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Does Travel Nursing Have a Retirement Plan?

Depending on the agency you choose, you may be offered a travel nurse retirement plan. 

Trusted Nurse Staffing makes finding a new opportunity with great benefits — including a matching 401(k) — easy! Use the Pronto job search to find available travel nurse assignments today.

 

travel nurse retirement plan

 

Can You Have a 401(k) as a Travel Nurse? 

Yes! Travel nurses can have a 401(k). 

Many travel nurse agencies offer traditional 401(k) plans. The contributions to this plan are tax-deferred, and you only pay tax when it is time to withdraw your funds for retirement. 

 

3 Options for Travel Nurse Retirement Plans

 

#1: Traditional 401(k)

A 401(k) is a defined contribution plan, meaning employers can make a specific contribution annually. 

For example, your employer may give you a 4% return on your investment. Risk-free investments are always worth it!

Weigh the pros and the cons when deciding on opening a 401(k). There are always limitations, but the most crucial factor is to learn about your options. 

 

Advantages of a Traditional 401(k)

These plans allow the employer and employee to make tax-deferred contributions, so you won’t need to pay income tax until you withdraw your funds. 

You don’t pay taxes immediately on the money you contribute to your 401(k). For example, if you make $60,000 in a year and contribute $7,000, your taxable income would be $53,000, not including any other deductions or adjustments. 

A traditional 401(k) is a great way to end up in a lower tax bracket if you have a high tax burden since it reduces your taxable income.

Some agencies will match your 401(k), meaning they match the employee’s contributions up to a certain amount. 

Think of it as FREE MONEY! You’ll definitely want to take advantage of this option if it’s available. 

You often need to work for a company for a certain amount of time before this opportunity is available — usually a year or more.

 

Disadvantages of a Traditional 401(k)

If you have a higher salary when you retire than when you contributed to your 401(k), you will owe more for being in a higher tax bracket.

Additionally, you generally must work for an employer full-time for over a year before they match your contributions. 

Travel nurses may struggle to meet these vesting requirements as they usually move from company to company looking for new opportunities. However, once you decide to travel with just one agency, like Trusted Nurse Staffing, your 401(k) can add up across multiple assignments. 

Find available travel nursing jobs with Trusted Nurse Staffing on Pronto today!

 

travel nurse retirement plan

 

#2: Traditional IRA

Another option is to move your money to an IRA to offer more decisions about the investment option you desire. Also, diversifying your retirement portfolio is always a good idea.

If you don’t have a significant income tax burden, not paying taxes on the part of your income may not matter, and therefore, you may choose an IRA.

Many travel nurses receive a large amount of their pay from tax-free stipends, and therefore, have lower taxable incomes. In addition, travel nurses frequently have other deductibles, making their taxable income lower. In these situations, investing in an IRA may be even more advantageous. 

 

Advantages of a Traditional IRA

The one thing you need to remember is that IRA contributions add to your savings for retirement, even if they are not tax-deductible.

The good news is that you avoid paying taxes when you do a direct rollover to transfer your money.

In 2025, you can contribute up to $7,000 yearly if you’re under 50. Those 50 and older can contribute an additional $1,000. 

 

Disadvantages of a Traditional IRA

Unfortunately, there are high tax penalties when you withdraw funds before retirement age. You may have to pay up to a 10% tax penalty. 

 

#3: Roth IRA

A Roth IRA is a type of individual retirement account that allows users to contribute after-tax dollars toward retirement. The main difference between a traditional vs. Roth IRA is when and how your money is taxed. 

 

Advantages of a Roth IRA

With a Roth IRA:

  • Your investment can grow tax-free.
  • You can withdraw your contribution tax-free at any time. 
  • You can contribute up to $7,000 in 2025
  • If you are 50 or older, your limit will be $8,000 in 2025. 
  • Once you are 59.6 years old, withdrawals will be taxed as current income. 

These contributions are not tax-deductible. However, since you pay taxes on the money you put into your Roth IRA, you don’t have to pay when you withdraw the funds. 

 

Disadvantages of a Roth IRA

On the downside, you cannot withdraw your earnings at any time with a Roth IRA.

However, there are some exceptions. Once you reach 59.5 years old, are disabled, or need funds to buy a first-time home, you can withdraw your earnings tax-free. 

There are also contribution limits depending on your income level. Roth IRA income limits for the 2025 tax year will be $161,000 for single filers and $230,000-$240,000 for married couples who file jointly. 

 

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Tips for Managing Multiple Travel Nurse Retirement Plans

Sometimes, you end up with multiple retirement plans, which is far better than not having options. However, the more plans you have, the more confusing it can be.

Here are some tips for more ease when saving for retirement:

  1. Having money in multiple accounts is OK, and leaving the money where it is may be your best bet. You are good if your employer allows you to stay in your current plan. 
  2. Sometimes, you can move money into a new employer’s plan. Check with your advisors to see if transferring the money into the new account is possible. 
  3. Choose an IRA account. This way you may transfer your money using a direct rollover to avoid being taxed on the money.
  4. Take the money as a distribution by cashing out. Often there are penalties if you withdraw the money before retirement age, but you may decide the penalties are worth it. 

 

Trusted Nurse Staffing Helps You Get on Track for Retirement With a Matching 401(k)

There are many benefits to working with Trusted Nurse Staffing! We offer our nurses: 

  • A 401(k) plan with a 4% match after 1,000 hours and a year of employment
  • Competitive compensation
  • Weekly paychecks
  • Housing, meal, and travel stipends
  • Rental car options
  • Employer-sponsored health insurance and Guardian dental and vision insurance
  • Top-tier bonuses, including referral and loyalty programs
  • Student loan assistance to active nurses who’ve been with Trusted Nurse Staffing for 30 days
  • And much more

Get your career off the ground and start building your future With Trusted Nurse Staffing. To find available travel nursing jobs on Pronto simply:

  1. Upload your credentials, set your preferred job filters, and start applying to jobs right away.
  2. Get assigned a dream team. You’ll get matched with your own dedicated support team that includes clinical support, payroll and compliance experts, and ongoing assignment advocacy.
  3. Become a part of the Trusted Nurse Staffing family! You’ll have full access to your team and our job board, fully empowered in your career.

We can’t wait to meet you!

 

travel nurse retirement plan