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Physician Contract Glossary · Benefits & Leave

Retirement Plan

A retirement plan is the employer-sponsored savings vehicle, such as a 401(k), and the match and vesting schedule drive its value.

The retirement plan is the employer-sponsored savings program, commonly a 401(k) or 403(b), sometimes with profit sharing or a cash balance plan in physician practices. The real value lives in the employer match and the vesting schedule. A generous match that vests over many years is worth far less if you leave before vesting, and high earners should check contribution limits and any deferred plans.

WHAT TO WATCH FOR

Read the match formula and the vesting schedule together. A strong match on a long vesting cliff can vanish if you leave early, so factor your realistic tenure into how much the plan is actually worth to you.

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