If you're retiring from AdventHealth, retirement planning means treating your 403(b), 457(b), and deferred comp as one plan, not three. Each is taxed in its own way. The order you tap them can change how much income you keep. Sequencing them well matters.
If you have spent your career inside AdventHealth, you have likely built savings across more than one account. AdventHealth retirement planning starts by seeing those accounts as one connected income plan rather than three separate buckets. Your 403(b), your 457(b), and any deferred compensation each follow their own rules, and the way they work together can affect the income you keep.
This guide walks Florida healthcare professionals through how those accounts differ, why withdrawal order matters, and what tends to deserve attention before you leave. At Holland Capital Management, our approach follows one idea: Preserve. Strengthen. Grow.™
Your AdventHealth Accounts at a Glance
Healthcare employers often layer several savings vehicles, and AdventHealth is no exception. Before you map a withdrawal order, it helps to know what each account is built to do.
- 403(b): The core workplace plan for many nonprofit healthcare employees. Contributions are usually pre-tax, and growth is tax-deferred until you withdraw.
- 457(b): A supplemental plan offered to certain higher-earning staff. It can carry different early-access rules than a 403(b), which can matter if you retire before the traditional age.
- Deferred compensation: A nonqualified arrangement that may pay out on a fixed schedule you elected earlier. Leaving AdventHealth can start that schedule, so the timing deserves a close look.
How the 403(b) and 457(b) Differ
On paper the two plans look similar, yet a few differences can change your strategy. A 403(b) generally follows the same early-withdrawal treatment as many workplace plans, so taking money out well before retirement age can carry an extra penalty in addition to income tax.
A governmental or nonqualified 457(b) can behave differently. In some arrangements, funds may become available after separation from service without the same early-withdrawal penalty. That single distinction can make a 457(b) a useful early bridge for someone who retires from AdventHealth before drawing on other accounts. The rules vary by plan document, so confirm the terms that apply to you.
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Deferred Compensation and Your Exit
Deferred compensation is where timing tends to matter most. Many nonqualified plans pay out on a schedule you chose years earlier, and that schedule can land a large sum in a single tax year. Good AdventHealth retirement planning treats the deferred comp payout as a tax event to plan around, not a surprise to absorb later.
If a payout arrives in the same year as other income, it can push part of your earnings into a higher bracket. Spreading income across years, where your plan allows, may help you manage that. A review of your election well before your exit date gives you more room to adjust.
Building Your Withdrawal Order
The order you draw from accounts can affect your lifetime tax bill. AdventHealth retirement planning works best when the withdrawal order is set before the first distribution, not after. A common starting frame is to fill lower tax brackets first, then decide whether a Roth conversion makes sense in lower-income years.
This sequence is illustrative, not a promise of any result. Your own order depends on your age, your other income, and whether a 457(b) bridge or a phased deferred comp payout fits the picture. A broader look at retirement income planning shows how these pieces connect, and a dedicated withdrawal strategy can put the order on paper.
Taxes Across Your Retirement Years
Taxes do not stop the day you retire. Required minimum distributions can begin later in retirement and may raise your taxable income just as deferred comp winds down. Higher income can also affect Medicare premiums through income-related adjustments. None of this is a reason to avoid saving, and a balanced plan weighs these costs against the benefit of steady, tax-aware income.
Drawing income earlier from a 457(b) bridge, when available, can sometimes ease pressure in later years. The trade-off is that you use that account sooner. Weighing both sides is part of our retirement planning work, and understanding sequence of returns risk helps explain why early years carry extra weight.
What Should You Do First?
Start by gathering your current statements and your deferred comp election. Confirm the early-access rules on your 457(b) and the payout schedule on your deferred comp. From there, AdventHealth retirement planning becomes a question of order: which account funds the first years, and which ones grow a little longer. A fiduciary review can map that order around your timeline and goals.
Getting Started with Holland Capital Management
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Frequently Asked Questions
Can I Keep My AdventHealth 403(b) After I Leave?
In many cases you can leave a 403(b) in place after you separate, though options vary by plan. You may also be able to roll it into another tax-deferred account. Each path has different costs and access rules, so compare them before you move funds.
How Is My 457(b) Taxed When I Retire?
Distributions from a 457(b) are generally taxed as ordinary income in the year you receive them. A governmental 457(b) may let you access funds after separation without the early-withdrawal penalty that often applies to other plans. Confirm the rules in your plan document.
What Happens to Deferred Comp If I Change Jobs?
Nonqualified deferred compensation usually pays out on the schedule you elected, and leaving can start that schedule. Because a large payout can land in one tax year, reviewing your election early gives you more room to manage the timing.
Should I Roll My 403(b) into an IRA?
A rollover can simplify your accounts and widen your investment choices, yet it can also change creditor protection and fees. The right answer depends on your situation. If a Roth path interests you, our guide to a Roth conversion strategy walks through the trade-offs.
Do I Need a Financial Advisor for This?
You can manage these accounts on your own, and many people do. A fiduciary advisor may help when several accounts, tax brackets, and timing decisions overlap, which is common for AdventHealth professionals nearing retirement.
When Should I Start Retirement Planning?
Earlier tends to give you more options. Reviewing your withdrawal order a few years before you retire leaves time to adjust deferred comp elections and consider conversions in lower-income years.
What Is a 457(b) Plan?
A 457(b) is a supplemental retirement plan offered to certain employees. It lets you set aside additional pre-tax income beyond a 403(b), and its access rules after separation can differ in useful ways. The specifics depend on whether your plan is governmental or nonqualified.
