401k Options for Travel Nurses: A Practical Guide

Retirement savings is one of the most neglected areas of travel nursing finances. You’re earning great money, living assignment to assignment, and retirement feels far away. But the variable income, frequent employer changes, and gaps between contracts create real obstacles — and real opportunities — for building a 401k. Here’s how to navigate it.

The Problem With Agency 401k Plans

Most large travel nursing agencies offer a 401k. AMN, Aya, Cross Country, and others all have plans. The issue: vesting schedules.

Many agency 401k plans require you to work a certain number of hours or years before employer contributions vest. If you work with one agency for 13 weeks and then switch, you might forfeit any employer match entirely. Even with immediate vesting, you’re starting over with each new agency you use.

You can still contribute your own money to these plans and get the tax advantage. But don’t assume the employer match will actually stay with you.

What to do: Always read the vesting schedule before counting on any match. Ask HR or your recruiter specifically: “Does the 401k match vest immediately, or is there a schedule?”

Your Own Contributions Always Go With You

Your own pre-tax or Roth contributions to any 401k are always 100% yours immediately. Vesting rules only apply to employer contributions. So even if you switch agencies every contract, you can contribute to each agency’s 401k, roll over your balance when you leave, and keep everything.

The rollover process: when you leave an agency, request a direct rollover to an IRA (not a cash distribution, which triggers taxes and a 10% penalty). Any major brokerage — Fidelity, Vanguard, Schwab — will accept the rollover.

Over time, you’ll want to consolidate multiple small 401k balances into a single IRA rather than managing 10 different accounts.

The 2024 401k Contribution Limits

• Employee contribution limit: $23,000
• Catch-up contribution (age 50+): additional $7,500
• Total limit including employer contributions: $69,000

These limits reset each January 1. If you work with one agency that offers a good match and you contribute the full $23,000, you’re doing well.

The Solo 401k: The Best Option You’ve Never Heard Of

If you do any self-employment income — 1099 work, PRN shifts through your own LLC, healthcare staffing agency fees — you qualify for a Solo 401k (also called Individual 401k or self-employed 401k).

The solo 401k has the same $23,000 employee contribution limit. But it also allows an employer contribution of up to 25% of your net self-employment income. The total limit is still $69,000. Here’s why this matters:

If you do even $50,000 of 1099 work in a year, you can contribute up to $12,500 as the “employer” (25% × $50,000 net SE income, adjusted slightly for SE tax). Stack that on your $23,000 employee contribution and you can shelter $35,500.

This is a massive advantage for nurses who do any contract or per diem work outside a W-2 agency.

Solo 401k providers to consider: Fidelity (free, no annual fee), TD Ameritrade (now Schwab), and specialized providers like MySolo401k.net for more complex situations.

You must open the plan by December 31 of the tax year you want to make contributions. You can fund it up to the tax filing deadline (April 15 of the following year, or October with extension).

What to Do Between Contracts

The gap between assignments is where most travel nurses’ retirement savings get disrupted. You’re not earning, so you’re not contributing.

Option 1: Contribute to an IRA during the gap. A traditional or Roth IRA doesn’t require an employer — you fund it yourself with earned income from earlier in the year. You have until April 15 to make IRA contributions for the prior year.

Option 2: Continue with your last agency’s 401k if you haven’t rolled over yet. You usually can’t contribute to a former employer’s plan, but you don’t have to roll it over immediately. Let it sit until you’re ready.

Option 3: Build the solo 401k if you’re doing any 1099 work. Some nurses do per diem or telehealth work during gaps. Even a little self-employment income opens solo 401k eligibility.

Which Account Type: Pre-Tax or Roth?

Travel nurses often have lower taxable income than their total compensation suggests — because stipends aren’t taxable. This can push you into a lower bracket than you’d expect.

If you’re in the 22% bracket or below: Roth contributions often make sense. You pay taxes now at a low rate and get tax-free growth forever.

If you’re in the 24%+ bracket or anticipate lower income in retirement: pre-tax (traditional) contributions save more now.

Many plans offer both options. Consider splitting contributions between pre-tax and Roth to hedge your bets.

A Simple Contribution Strategy

1. Contribute enough to any agency 401k to capture the full match (free money, vesting asterisks aside)
2. Max your Roth IRA annually ($7,000 in 2024, $8,000 if 50+)
3. If you have self-employment income, open a solo 401k and maximize employer contributions
4. Come back to the 401k to contribute more if you have additional savings

This order maximizes tax efficiency and flexibility while capturing any employer match available.

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Your next step: Log into your current agency’s HR portal and check whether you’re enrolled in their 401k and what the vesting schedule looks like. If you’re not enrolled, enroll today. If you have any 1099 income from last year, look into opening a solo 401k at Fidelity before December 31.