If you’re planning your retirement from Bon Secours, look at your 403(b), 457 plan, pension, and other savings as one set of decisions. Each account follows different tax rules. The order you draw from them can affect your taxes and the income you keep.
Why Bon Secours Retirement Planning Feels Different
Bon Secours retirement planning rarely comes down to one account. Many clinical and administrative staff finish a career with a mix of savings. That often means a 403(b) you funded from each paycheck, a 457 plan if you were eligible, and in some cases a pension or service credit from earlier years. Add personal accounts and a spouse’s plan, and the picture gets busy fast.
The complexity is not a problem to fear. It is simply a reason to plan with intention. Each of these accounts follows its own tax rules and its own access rules, and those rules interact once you stop working. A clear retirement planning approach treats them as one connected system rather than separate piles of money.
Your Main Retirement Accounts at Bon Secours
Before you decide how to draw income, it helps to know what each account is built to do. Health system benefits change over time, and the Bon Secours Mercy Health structure has shifted across mergers, so confirm the current details with your benefits office.
The 403(b) That Anchors Your Savings
For many employees, the 403(b) holds the largest balance. Contributions and growth are usually tax deferred, which means you have not paid income tax on most of it yet. When you withdraw in retirement, the money tends to count as ordinary income. That timing matters, because pulling a large amount in a single year can lift you into a higher bracket.
The 457 Deferred Comp Plan
The 457 plan is a deferred compensation account some staff and physicians can use. It often allows access on a different schedule than other retirement accounts, which can give you flexibility in the first years after you leave. The rules vary by plan type, so read your plan document closely or ask an advisor to review it with you.
Pension and Outside Savings
If you earned a pension or hold older service credit, that becomes another income stream with its own start date and payout choices. Brokerage accounts, a health savings account, and a spouse’s plan round out the set. None of these should be planned in a vacuum.
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The Order You Draw Income Can Change Your Taxes
Once you retire, you choose which accounts to tap first. That sequence can have a real effect on your lifetime taxes, because each dollar carries a different tax cost depending on where it comes from. A thoughtful withdrawal order can help you smooth your taxable income across years instead of spiking it in any one year.
Notice that the same withdrawal can land very differently depending on the account. Pulling from a Roth in a high income year, then leaning on tax deferred accounts in a lower year, is one pattern many retirees consider. This also connects to sequence of returns risk, since the order and timing of withdrawals interact with how markets behave early in retirement.
Turning Your Accounts into Retirement Income
Building a paycheck in retirement means deciding how much to draw, from where, and in what order, year after year. The goal is steady income you can rely on while keeping an eye on taxes and longevity. Our retirement income planning approach starts with your spending needs and works backward to the accounts.
This is one pattern, not a rule. The right order depends on your brackets, your other income, and what you want your money to do. A plan that fits a physician with a large 457 balance may look different from one built for a nurse with a pension and a smaller 403(b).
A Bon Secours Retirement Planning Checklist
If you are within a few years of leaving, a short list can keep the work grounded. Use it as a starting point, then tailor it with a professional who can see your full picture.
- Confirm your current 403(b) balance, contribution rate, and investment lineup.
- Check whether you have a 457 plan and review its access rules before your last day.
- Track down any pension or older service credit and request a payout estimate.
- List outside accounts: brokerage, a health savings account, and a spouse’s plan.
- Map a draft withdrawal order and review the tax effect of each step.
- Decide whether rolling over an older account fits your goals, using a clear rollover review.
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Frequently Asked Questions
Can I Keep My 403(b) After I Leave Bon Secours?
In many plans you can leave the balance where it is, roll it to an IRA, or move it to a new employer plan if one is available. Each choice has tradeoffs around fees, investment options, and access. Review your plan document and your goals before you decide.
How Does the 457 Plan Differ from a 403(b)?
Both let you defer income, but a governmental or eligible 457 plan often allows withdrawals on a different schedule once you separate from service. The exact rules depend on your plan type, so confirm the details with your benefits office.
When Can I Access 457 Money Without a Penalty?
Access rules vary by plan. Some 457 plans allow penalty free withdrawals after you leave employment, regardless of age, while others follow different terms. This is worth checking carefully, since it can affect your early retirement income.
Should I Roll My 403(b) into an IRA?
A rollover can simplify your accounts and widen your investment choices, but it is not always the better move. Plan fees, creditor protection, and access rules all factor in. A side by side review of costs and features can help you weigh it.
Does Bon Secours Offer a Pension?
Pension availability has changed across the Bon Secours Mercy Health system over the years. Some longer tenured employees hold a pension or frozen service credit, while newer staff may not. Your benefits office can confirm what applies to you.
How Much Can I Contribute to My 403(b)?
Annual limits are set by the IRS and can change each year, with additional catch up amounts once you reach a qualifying age. Check the current figures before you set your contribution rate, especially in your final working years.
Is Retirement Planning at Bon Secours Different for Physicians?
Often, yes. Physicians may carry larger 457 balances, variable income, and different tax brackets, which can change the withdrawal order that makes sense. The core ideas are the same, but the numbers and timing tend to differ.
Where Can I Get Help with Bon Secours Retirement Planning?
An independent, fiduciary advisor can review your accounts as one system and build a withdrawal and income plan around your goals. You can learn more about our retirement income planning work and how it may fit your situation.
