Travel Nurse Retirement Planning: 401k, IRA, and More

Travel Nursing Is Great for Income. Retirement Planning Is on You.

Travel nursing can be one of the highest-paying paths in the nursing profession. But without a permanent employer handling your retirement benefits, the responsibility of building a nest egg falls entirely on your shoulders. The nurses who start early retire comfortably. The ones who wait scramble to catch up.

The core problem is straightforward: the traditional 401(k) system was designed for people who stay with one employer for years. That is not you. You switch agencies, switch states, and switch contracts every few months. The system was not built for how you work, so you need to build your own system around it.

This guide covers every retirement vehicle available to travel nurses, from agency 401(k) plans to self-directed IRAs, with a clear strategy for putting them together.

This is educational content, not financial advice. Consult a qualified financial advisor before making investment decisions.

The Travel Nurse Retirement Challenge

Let us be honest about what you are up against.

No automatic enrollment. Staff nurses often get enrolled in a 401(k) on their first day with a default contribution rate. As a travel nurse, nobody is going to do this for you. If you do not take action, nothing happens.

Frequent job changes disrupt contributions. Every time you switch agencies, your 401(k) situation resets. New eligibility requirements, new waiting periods, new fund options. The friction is real, and it is the main reason many travel nurses simply give up on employer-sponsored retirement plans.

Variable income makes planning harder. When your weekly pay changes every 13 weeks, setting a fixed savings amount feels complicated. It does not have to be, but it requires a different approach than a static salary.

The spending temptation. Travel nurses often earn significantly more than their staff nurse peers. That higher income can lead to lifestyle inflation if you are not intentional. The nurses who build wealth are the ones who save the difference, not spend it.

Agency plans exist, but with caveats. Many agencies do offer 401(k) plans. The problem is that the details, such as waiting periods, match percentages, and vesting schedules, vary dramatically and often work against short-term employees.

Agency 401(k) Plans: What You Need to Know

Not all agency 401(k) plans are created equal. Before you contribute, understand the terms.

Waiting periods. Many agencies require 60 to 90 days of employment before you can enroll. On a 13-week contract, that leaves you only a few weeks of actual contributions. Some agencies have no waiting period, which is a significant perk worth considering when choosing where to work.

Employer matching. Some agencies match a portion of your contributions, commonly 25 to 50 percent of what you contribute up to 3 to 6 percent of your salary. Free money is hard to pass up, but read the fine print on vesting.

Vesting schedules. Vesting determines when employer-matched contributions actually become yours. If an agency has a three-year vesting schedule and you leave after 13 weeks, you may forfeit 100 percent of the employer match. Your own contributions are always yours.

Contribution limits for 2026. You can contribute up to $23,500 to a 401(k) if you are under 50, or $31,000 if you are 50 or older. These limits apply across all your 401(k) accounts combined, not per employer.

What happens when you leave. When your contract ends, your account does not disappear. But leaving small balances scattered across multiple agency plans is a recipe for high fees and lost track of money. Rolling those accounts over to an IRA is almost always the right move.

For a broader look at retirement strategy, see our retirement plan overview.

Traditional IRA vs. Roth IRA for Travel Nurses

If agency 401(k) plans are unreliable, individual retirement accounts are your anchor. They stay with you regardless of which agency you work for, and you control everything.

Traditional IRA

A Traditional IRA lets you contribute pre-tax dollars, reducing your taxable income in the year you contribute. The money grows tax-deferred, and you pay income taxes when you withdraw in retirement.

Best for: Nurses who are in a high tax bracket now and expect to be in a lower bracket during retirement. If your taxable W-2 income is high and you want an immediate tax break, a Traditional IRA makes sense.

Contribution limits for 2026: $7,000 per year, or $8,000 if you are 50 or older. Deductibility may be limited if you also have access to an employer-sponsored plan and your income exceeds certain thresholds.

Roth IRA

The Roth IRA is funded with after-tax dollars. You get no tax break today, but your money grows tax-free and withdrawals in retirement are completely tax-free.

Best for: Most travel nurses. Here is why: your tax-free stipends lower your W-2 income, which means you are likely in a lower tax bracket than your actual earning power suggests. Paying taxes now at that lower rate, and then never paying taxes on the growth or withdrawals, is a highly advantageous position.

Income limits: For 2026, single filers earning above $161,000 in modified adjusted gross income (MAGI) face reduced contribution limits, and those above $176,000 cannot contribute directly. Most travel nurses fall below these thresholds because stipends are excluded from MAGI.

The backdoor Roth. If you do exceed the income limits, you can contribute to a Traditional IRA and then convert it to a Roth. This strategy is legal and widely used, but involves some tax nuances. A CPA who works with travel nurses can walk you through it.

Which One Should You Choose?

For most travel nurses, the Roth IRA is the better default. The combination of lower current tax rates (due to stipends) and tax-free retirement income is hard to beat. But contributing to both a Traditional and Roth IRA is also a valid strategy. It gives you tax diversification in retirement, meaning you can pull from taxable or tax-free accounts depending on your needs in any given year.

Solo 401(k) and SEP-IRA: For Nurses With Side Income

If you do any 1099 work, per diem shifts as an independent contractor, or have a side business, you unlock additional retirement account options with significantly higher contribution limits.

Solo 401(k)

The Solo 401(k) is designed for self-employed individuals with no employees. You can contribute as both the employee (up to $23,500) and the employer (up to 25 percent of net self-employment income), with a combined limit of $69,000 for 2026. A Roth option is available for the employee contribution portion.

Additional perks include the ability to take loans from your account and the option to make catch-up contributions if you are over 50.

Best for: High-earning 1099 nurses or those with significant side income who want to maximize tax-advantaged retirement savings.

SEP-IRA

The SEP-IRA (Simplified Employee Pension) is easier to set up and maintain than a Solo 401(k). You can contribute up to 25 percent of net self-employment income, with the same $69,000 cap. All contributions are tax-deductible.

The downside is there is no Roth option and no employee contribution side, so the contribution calculation works differently. For nurses with moderate side income, a SEP-IRA is the simpler choice.

Best for: 1099 nurses who want a straightforward setup without the paperwork of a Solo 401(k).

To understand the differences between W-2 and 1099 employment and how they affect your retirement options, check our W-2 vs. 1099 guide.

How Much Should You Save for Retirement?

The widely cited guideline is 15 percent of gross income directed toward retirement savings. That is a good target, but let us put it in travel nurse terms.

If you earn $100,000 per year (combining taxable wages and stipends), 15 percent is $15,000, or about $1,250 per month. That is well within the Roth IRA annual limit if you are just getting started, and entirely doable if you are also contributing to a 401(k).

The power of starting early. A nurse who starts investing $500 per month at age 25 and earns an average 8 percent annual return will have approximately $1.5 million by age 65. Wait until 35, and the same $500 per month yields roughly $680,000. The first nurse contributed only $60,000 more in total, but ended up with over $800,000 more in retirement savings. That is compound interest at work.

If you are starting late, do not panic. Travel nursing income gives you a real advantage here. You have the earning capacity to contribute more aggressively than most people. A nurse starting at 40 who saves $1,500 per month can still build a substantial retirement fund by 65.

Use our pay calculator to understand your real take-home pay and figure out how much you can direct to retirement each month. Our budget guide can help you find room in your spending.

Where to Open Your Retirement Accounts

Choose a low-cost, reputable brokerage for your IRA and any self-directed retirement accounts. The big three are Fidelity, Vanguard, and Schwab. All offer:

No account minimums for most IRAs
Low-cost index funds with expense ratios under 0.10 percent
No account maintenance fees
Excellent customer service and educational resources
Easy rollover processes for consolidating old 401(k) accounts

Robo-advisors like Betterment and Wealthfront are another option if you want completely hands-off investing. They build and manage a diversified portfolio for you, typically for a fee of 0.25 percent per year. This is more than managing index funds yourself, but less than a traditional financial advisor.

What to look for: Low expense ratios on funds, no account fees, a good selection of index funds and target-date funds, and an easy-to-use platform.

Investment Basics for Retirement Accounts

You do not need to become a stock market expert. A few core principles will serve you well.

Asset allocation by age. Younger nurses should be more heavily invested in stocks (higher growth potential, more time to recover from downturns). As you approach retirement, shift toward bonds (lower volatility, more stable income). A simple rule: subtract your age from 110 to get your target stock percentage. At age 30, that is 80 percent stocks and 20 percent bonds.

Index funds are the standard recommendation. A total U.S. stock market index fund, an international stock market index fund, and a total bond market index fund give you exposure to virtually the entire global economy for minimal cost. This three-fund portfolio is used by millions of investors and endorsed by most financial experts.

Dollar-cost averaging. Invest a fixed amount regularly, regardless of market conditions. This removes the temptation to time the market and ensures you buy more shares when prices are low and fewer when prices are high. For a deeper dive into investing mechanics, see our investing guide.

Rebalance annually. Once a year, check whether your stock-to-bond ratio has drifted from your target and adjust if needed.

Do not panic sell. Market drops are normal. The S&P 500 has dropped 20 percent or more many times in its history and has always recovered. Selling during a downturn locks in your losses. Stay the course.

Key Takeaways

Start contributing to retirement now. Even small amounts matter enormously over time thanks to compound interest
Open a Roth IRA as your foundation. It stays with you regardless of which agency you work for and offers tax-free growth
Take advantage of agency 401(k) matches when vesting allows, but do not rely on employer plans as your primary strategy
Roll over old agency 401(k) accounts into a single IRA to keep things organized and minimize fees
Aim to save at least 15 percent of gross income for retirement, and use travel nursing’s higher earning potential to accelerate your timeline
Choose low-cost index funds, automate your contributions, and resist the urge to tinker

Your future self is counting on the decisions you make today. Open that Roth IRA, set up automatic contributions, and let time do the rest.

Affiliate Placement Notes

Investment platform affiliate links (Fidelity, Vanguard, Schwab) in “Where to Open” section
Robo-advisor affiliate links (Betterment, Wealthfront) in “Where to Open” section
Financial advisor referral link in investment basics section
CPA referral link where backdoor Roth is discussed