Your Final Year at Mayo Clinic: Retirement Deadlines to Know
Mayo Clinic's generous benefits package includes several time-sensitive decisions that can't be changed once made. Missing these deadlines can cost you thousands of dollars or result in coverage gaps.
Here are the critical deadlines every Mayo employee should know when planning retirement.
Notify Mayo Clinic: 30 Days Before Retirement
At least 30 days before your planned retirement date, you will need to formally notify Mayo Clinic of your intention to retire. This isn't just a courtesy, either. Mayo needs time to calculate your final pension benefits, process your healthcare transitions, and prepare your retirement benefit elections.
The 30-day window also gives you time to make informed choices about your pension options rather than rushing into decisions you can't change.
Deadline: You must notify Mayo at least 30 days before your intended retirement date.
Why it matters: Mayo requires this advance notice for proper benefit processing and pension calculations.
What happens if you miss it: You may experience delays in pension processing, potential gaps in benefit transitions, and rushed decision-making.
What to do:
Notify your supervisor and HR officially through proper channels.
Submit formal retirement paperwork through HR Connect.
Schedule exit interviews and knowledge transfer meetings with your team.
Begin coordinating the handoff of your responsibilities.
Pension Benefit Elections: 60–90 Day Window
You will have to choose how to receive your Mayo Clinic pension benefits, either as a lump sum payment or monthly payments for life. You’ll also need to decide what survivor benefits you want to set for your spouse.
These elections are completely irrevocable once your first payment is issued, making this one of the most important financial decisions of your retirement.
Deadline: Elections must be completed within 90 days of your benefit commencement date.
Why it matters: These elections cannot be changed after your first payment is made.
What happens if you miss it: You forfeit your right to choose and automatically receive the default 50% joint and survivor annuity (if married) or life only annuity (if single).
What to do:
Model lump sum versus monthly payment scenarios based on your financial situation.
Decide on the joint and survivor percentage if married (50%, 75%, or 100%).
Complete beneficiary designations for any remaining benefits.
Obtain spousal consent if choosing options that reduce spousal benefits.
Spousal Consent for Pension Elections: 90 Days Maximum
Under federal law, your spouse must give notarized permission if you want to choose pension options that reduce their potential benefits. This protects spouses from being cut out of retirement benefits without their knowledge and consent.
The consent must be witnessed by a notary public and signed within 90 days of your benefit commencement. It cannot be completed before the 90-day window begins, and if you miss this deadline, you're limited to options that provide spousal protection.
Deadline: This must be completed within 90 days of your pension benefit start date.
Why it matters: Federal law requires spousal consent for pension elections that could reduce spousal benefits.
What happens if you miss it: You cannot elect options that don't provide spousal protection (like a life-only annuity or a lump sum).
What to do:
Discuss the financial impact of your preferred pension election with your spouse.
Schedule an appointment with a notary public for the consent signing.
Ensure the consent form is signed within the 90-day window (cannot be done earlier).
Keep copies of all signed and notarized documents.
Medicare Enrollment: 3 Months Before Age 65
Medicare becomes available when you turn 65, and you must enroll during specific time windows to avoid permanent penalties. Missing Medicare deadlines results in penalties that last for the rest of your life, making this one of the most expensive mistakes retirees can make.
If you delay Medicare Part B enrollment by just two years, you'll pay an extra 20% in premiums for the rest of your life. On a $175 monthly Part B premium, that's an extra $35 per month forever.
Deadline: Apply three months before your 65th birthday.
Why it matters: Avoid permanent late enrollment penalties and healthcare coverage gaps.
What happens if you miss it: Permanent monthly penalties for Medicare Part B (10% for each 12-month period you were eligible but didn't enroll) and potential gaps in prescription drug coverage.
What to do:
Apply for Medicare Parts A and B three months before your 65th birthday.
Research and enroll in Medicare Part D (prescription coverage) if needed.
Shop for Medigap supplemental insurance within six months of Part B enrollment.
Coordinate your Medicare effective date with the end of Mayo coverage to avoid gaps.
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COBRA Health Insurance Election: 60 Days After Coverage Loss
COBRA allows you to continue your Mayo health insurance temporarily after retirement by paying the full premium plus administrative fees. This can provide bridge coverage if you're not yet Medicare eligible, though it's typically expensive.
COBRA typically costs $600–$1,500+ monthly for individual coverage, or $1,200–$2,500+ for family coverage. You pay the full premium plus a 2% administrative fee, making it one of the most expensive coverage options.
Deadline: You must enroll within 60 days after losing Mayo health coverage.
Why it matters: It provides bridge healthcare coverage if you're not yet Medicare eligible.
What happens if you miss it: No access to COBRA coverage; you must find individual health insurance.
What to do:
Compare COBRA costs to marketplace plans and Mayo retiree health options.
Understand that COBRA can last up to 18 months (sometimes 36 months in special circumstances).
Submit COBRA election forms within 60 days of coverage loss.
Arrange payment method for monthly premiums.
HSA Contribution Cutoff: Medicare Enrollment
If you are contributing to a health savings account (HSA), you will have to discontinue the month you enroll in Medicare. The IRS considers Medicare enrollment incompatible with HSA contributions, and continuing to contribute results in a 6% penalty on excess contributions for each year they remain in the account.
You can contribute up to the month you enroll in Medicare, and you can still use HSA funds for medical expenses after Medicare enrollment. HSAs provide tax-free withdrawals for medical expenses throughout retirement.
Deadline: You must stop HSA contributions the month you enroll in Medicare.
Why it matters: Avoid IRS penalties for excess contributions.
What happens if you continue: You will incur a 6% penalty on excess contributions for each year they remain in the account.
What you need to do:
Stop HSA contributions the month Medicare coverage begins.
Notify your payroll department if HSA contributions are automatic.
Consider maximizing final year contributions before Medicare enrollment.
Plan an ongoing HSA investment strategy for retirement healthcare expenses.
Social Security Benefits Application: 3 Months Before Benefits Start
You will need to apply for Social Security retirement benefits if you plan to claim them immediately upon retirement. If possible, delaying Social Security from full retirement age to 70 can increase your lifetime benefits significantly.
Many Mayo employees can afford to delay Social Security because of their pension and 403(b)/457(b) savings, but if you're claiming immediately, the sooner you start the process, the better.
Deadline: Apply three months before you want benefits to begin.
Why it matters: This ensures benefits start when you want them and maximizes your planning time.
What happens if you miss it: You may experience delays in the first payment, though you can request to backdate your application by up to six months.
What to do:
Create your Social Security account at ssa.gov to access benefit estimates.
Review your earnings record for accuracy and report any discrepancies.
Analyze claiming strategies for you and your spouse to maximize household benefits.
Apply online, by phone, or in person three months before your desired start date.
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Required Minimum Distributions (RMDs): Age 73
The IRS requires you to start taking minimum annual withdrawals from your traditional pre-tax 403(b) and IRA accounts at age 73. This is done to ensure you eventually pay taxes on tax-deferred savings. The penalties for missing these withdrawals are severe, too.
If you're still working at Mayo past age 73, you can delay RMDs from your current Mayo 403(b) until you actually retire. However, RMDs from IRAs and previous employer plans still apply.
Deadline: Make withdrawals by April 1 of the year after you turn 73.
Why it matters: Avoid massive IRS penalties on retirement account balances.
What happens if you miss it: You will incur a 25% penalty on the amount you should have withdrawn (reduced to 10% if corrected within two years), plus regular income tax.
What to do:
Calculate required withdrawal amounts based on IRS life expectancy tables.
Determine which accounts require distributions (403(b), traditional IRAs, but not Roth accounts).
Set up systematic withdrawals or take annual lump sum distributions.
Plan tax withholding strategy to avoid underpayment penalties.
Year-End Tax Considerations: December 31
Your retirement year often involves complex tax planning opportunities that must be completed by December 31. This year typically involves the highest income (partial salary plus retirement distributions) and the most tax planning opportunities, creating both risks and opportunities for tax optimization.
Poor planning can result in higher taxes and missed opportunities that can't be recovered, such as Roth conversions that must be completed by year-end and cannot be reversed.
Deadline: All year-end tax strategies must be executed by December 31 of your retirement year.
Why it matters: Optimize your tax situation during the retirement transition year.
What you lose if you miss it: Tax planning opportunities can't be recovered.
What you need to do:
Consider Roth conversions before December 31 (cannot be reversed after year-end).
Maximize final 403(b)/457(b) contributions to reduce current year taxable income.
Adjust tax withholding on retirement income to avoid underpayment penalties.
Plan charitable giving if you want current-year tax deductions.
When Professional Help Makes Sense
As you can see, these deadlines interact with each other in complex ways. Your pension election affects your taxes, which affects your Social Security strategy, which affects your Medicare supplemental insurance needs. A mistake in timing or coordination can cost thousands in penalties or lost opportunities.
The cost of getting it wrong is steep, too. Missing Medicare deadlines can cost hundreds monthly for life. Wrong pension elections can cost tens of thousands in spousal protection or tax efficiency. Poor RMD planning can trigger 50% penalties on large account balances.
This makes working with a financial advisor who understands Mayo's specific benefits all the more important. A fiduciary financial advisor can help you navigate these deadlines and optimize your retirement strategy.
Get Help from a Trusted Team of Fee-Only Fiduciary Financial Advisors
At TrueWealth Financial Partners, we specialize in helping employees like you coordinate these complex deadlines while optimizing their retirement benefits. Our fee-only fiduciary approach ensures you receive objective guidance on timing and decision-making.
We understand Mayo's specific requirements and can help you create a timeline that maximizes your benefits while meeting all mandatory deadlines.
Schedule a free consultation today, and we can help make informed decisions about your retirement strategy on time, every time.
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