Travel Nurse Retirement Plan: How to Save for the Future

Retirement Planning When You Change Employers Every 13 Weeks

Retirement planning is one of the biggest blind spots in travel nursing. You earn great money, you are focused on your next assignment, and there is no HR department enrolling you in a 401(k) on your first day. So retirement savings quietly falls to the bottom of the priority list, year after year.

That is a costly mistake. Every year you delay investing for retirement, you lose the most powerful force in personal finance: compound interest. A 25-year-old who invests $400 per month at average market returns will have over $1 million by age 65. Wait until 35, and that same $400 per month only gets you about $500,000. Same effort, half the result.

The travel nurse lifestyle makes retirement planning harder, but it does not make it impossible. You just need a strategy built for how you actually work. This guide gives you one.

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

Why Travel Nurses Struggle With Retirement Savings

Understanding the obstacles is the first step to overcoming them.

Short contracts mean frequent employer changes. Every 13 weeks, you might be working with a new agency. Traditional retirement plans are built around long-term employment, which does not describe travel nursing at all.

Agency 401(k) plans come with strings attached. Many agencies require waiting periods of 60 to 90 days before you can enroll, and by then your contract may be nearly over. Vesting schedules mean you might not keep the employer match even if you do contribute.

Variable income makes consistent saving feel difficult. Your pay changes with every contract. One assignment pays $2,800 per week, the next pays $2,200. It is hard to set a fixed savings amount when the number keeps moving.

Tax-free stipends reduce your W-2 income. This is great for your tax bill, but it also means lower reported earnings to Social Security, which could reduce your future benefits.

The temptation to live assignment-to-assignment. When you are earning well and moving constantly, it is easy to adopt a “live for today” mentality. That works until you are 55 and realize you have not saved enough.

Retirement Account Options for Travel Nurses

Agency 401(k) Plans

Many major staffing agencies offer 401(k) plans, but the details vary widely. Some agencies provide employer matching (typically 25 to 50 percent of your contribution up to a certain percentage of your salary), while others offer the account with no match at all.

Watch out for waiting periods. If an agency requires 60 or 90 days before you can enroll, and your contract is only 13 weeks, you may barely get started before the assignment ends. Also pay attention to vesting schedules. If the employer match vests over three to four years, you will likely forfeit those contributions when you move to a new agency.

When you leave an agency, your own contributions are always yours. But those unmatched employer dollars may vanish. For a full breakdown of agency 401(k) details, see our 401(k) retirement guide.

Traditional IRA

A Traditional IRA lets you contribute up to $7,000 per year ($8,000 if you are 50 or older) and potentially deduct those contributions from your taxable income. You pay taxes when you withdraw the money in retirement.

This account works well alongside a 401(k) or as a standalone if you do not have access to an employer plan. The tax deduction is particularly valuable if you are in a higher tax bracket right now than you expect to be in retirement.

Roth IRA

The Roth IRA is the retirement account most financial experts recommend for travel nurses, and for good reason. You contribute after-tax dollars, but your money grows tax-free and withdrawals in retirement are completely tax-free.

Here is why this matters for travel nurses specifically: your tax-free stipends lower your W-2 income, which often puts you in a lower tax bracket than your actual earning power suggests. Paying taxes at that lower rate now, then withdrawing tax-free later, is a winning strategy.

Contribution limits for 2026 are the same as a Traditional IRA: $7,000 per year, or $8,000 if you are 50 or older. Income limits apply, but most travel nurses qualify.

SEP-IRA

If you work as a 1099 independent contractor, a SEP-IRA (Simplified Employee Pension) allows much higher contribution limits, up to 25 percent of your net self-employment income, with a cap of $69,000 for 2026. Contributions are tax-deductible.

This is a powerful tool for 1099 nurses who want to shelter a significant portion of their income from taxes. It is simple to set up and maintain compared to other self-employed retirement options.

Solo 401(k)

Also for 1099 nurses, the Solo 401(k) offers the highest contribution limits of any retirement account. You can contribute as both the employee and the employer, potentially putting away over $69,000 per year. A Roth option is available too.

The Solo 401(k) is the best choice for high-earning 1099 nurses who want to maximize their retirement savings. It does require more paperwork than a SEP-IRA, but the higher limits make it worthwhile. For more on W-2 versus 1099 considerations, read our W-2 vs. 1099 guide.

How Much Should You Save for Retirement?

The standard guideline is to save at least 15 percent of your gross income for retirement. But as a travel nurse, you need to think about this differently.

In your 20s: Aim for 10 to 15 percent. Time is on your side and compound interest does the heavy lifting. Even modest contributions now grow enormously over 35-plus years.

In your 30s: Target 15 to 20 percent. If you started late, you need to make up ground. The good news is travel nursing income gives you the capacity to save aggressively.

In your 40s: If you are behind, push for 20 to 25 percent or more. Use catch-up contributions available after age 50.

In your 50s: Maximize every available account. Catch-up contributions in both 401(k) and IRA accounts give you extra room.

The “pay yourself first” approach works especially well for travel nurses. When each new contract starts, set up automatic contributions before you adjust your lifestyle to the new paycheck. Use our budget guide and pay calculator to determine how much you can realistically save from each assignment.

Building a Retirement Strategy

Here is a step-by-step approach that works regardless of which agency you are with:

Step 1: Evaluate your agency’s 401(k). Does it have a match? What is the waiting period? What are the vesting terms? If there is an immediate match with reasonable vesting, contribute enough to get the full match. That is free money.

Step 2: Open a Roth IRA as your foundation. This is the account that stays with you no matter which agency you work for. It is your retirement anchor. Open one with Fidelity, Vanguard, or Schwab.

Step 3: Max out the employer match first. If your agency offers a 50 percent match on the first 6 percent of your contributions, contribute at least 6 percent to that 401(k). Then direct additional savings to your Roth IRA.

Step 4: Increase contributions as your income grows. Every time you take a higher-paying contract, bump your savings rate by at least 1 percent.

Step 5: Automate everything. Set up automatic transfers from your checking account to your Roth IRA. Enroll in automatic contributions for your agency 401(k). Remove the decision-making from the process.

Step 6: Review and rebalance annually. Once a year, check your investment allocation and make sure it still matches your timeline and risk tolerance.

Managing Multiple 401(k) Accounts

After a few years of travel nursing, you might have 401(k) accounts scattered across three, four, or more agencies. This is one of the biggest retirement pitfalls for travel nurses.

Small, forgotten accounts get eaten alive by fees. You lose track of them. You cannot manage your overall allocation effectively when your money is in five different places.

The best solution: roll everything into a single IRA. Contact your brokerage (Fidelity, Vanguard, or Schwab) and request a direct rollover from each old 401(k). The keyword is “direct,” meaning the money transfers from the old plan directly to your IRA without ever hitting your bank account. This avoids the 20 percent mandatory withholding that comes with an indirect rollover.

The process takes about 15 to 30 minutes per account. You will need the old plan’s account number and the new IRA’s account details. Once consolidated, you have one place to manage, one set of investments to monitor, and one login to remember.

The Social Security Consideration

Here is something most travel nurses do not think about: your tax-free stipends do not count toward Social Security credits. Only your taxable W-2 wages do.

If a significant portion of your compensation comes from stipends, your reported income to Social Security is lower than what you actually earn. Over a full career, this could meaningfully reduce your Social Security benefits in retirement.

You can check your projected benefits at ssa.gov. Log in and review your earnings record. If you see years of lower-than-expected income, that is the stipend effect.

This makes personal retirement savings even more critical for travel nurses. You cannot rely on Social Security alone, and you may receive less than a staff nurse earning the same total compensation. Your Roth IRA and other retirement accounts need to fill that gap.

Investment Basics for Retirement Accounts

Once your accounts are open, you need to choose investments. Keep it simple.

Index funds over actively managed funds. Low-cost index funds consistently outperform expensive actively managed funds over the long term. Look for expense ratios under 0.10 percent.

Target-date funds for simplicity. If you want a set-it-and-forget-it approach, choose a target-date fund matched to your expected retirement year. It automatically adjusts your stock-to-bond ratio as you age.

Keep fees low. The expense ratio is the annual fee charged by a fund. A difference of 0.50 percent per year might sound tiny, but over 30 years it can cost you tens of thousands of dollars.

Consider a financial advisor for complex situations. If you have 1099 income, multiple state tax obligations, or a high net worth, a fee-only fiduciary financial advisor can help you optimize your strategy. Read more in our financial planning guide.

Frequently Asked Questions

Should I contribute to my agency’s 401(k) on a short contract? Only if there is no waiting period and there is an employer match you can keep. If the match vests immediately, contribute enough to get the full match from day one. Otherwise, focus your dollars on your Roth IRA.

How do I roll over a 401(k) from a previous agency? Contact your new brokerage and ask for a direct rollover. They will guide you through the process and often handle most of the paperwork for you.

Is a Roth IRA or Traditional IRA better for travel nurses? For most travel nurses, the Roth IRA wins. Your tax-free stipends keep your taxable income lower, making it smart to pay taxes now at the lower rate and enjoy tax-free withdrawals later.

How much should I save if I started late? As much as you can. If you are starting at 40, aim for 20 to 25 percent of gross income. Take advantage of catch-up contributions once you turn 50. The higher earning potential in travel nursing gives you a real chance to catch up.

Can I contribute to both a 401(k) and an IRA? Yes. The contribution limits are separate. You can max out a 401(k) and a Roth IRA in the same year.

Key Takeaways

• Do not skip retirement savings just because you change employers every 13 weeks
• A Roth IRA is your retirement anchor because it stays with you regardless of your agency
• Consolidate old 401(k) accounts into a single IRA to simplify management and reduce fees
• Automate contributions so saving happens without relying on willpower
• Your Social Security benefits may be lower than expected due to tax-free stipends, making personal savings even more important
• Start now, even if the amount feels small, because compound interest rewards early action more than anything else

Ready to take the first step? Open a Roth IRA today and set up a $200 automatic monthly contribution. You can always increase it later, but the most important thing is to start.

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Related Internal Links

• Travel Nurse Financial Planning
• Travel Nurse Investing Guide
• Travel Nurse Budget and Save
• Should Travel Nurses Have an LLC
• Travel Nurse W-2 vs. 1099

Affiliate Placement Notes

• Investment platform affiliate links (Fidelity, Vanguard, Schwab) in account options sections
• Financial advisor referral link in investment basics section
• Budgeting app link where automatic savings is discussed