Understanding Your Banner Health 403(b) Retirement Plan
If you're a Banner Health employee working through Banner Staffing Services, your 403(b) plan will likely be your primary retirement benefit. In this guide, we’ll walk you through everything you need to know to get the most out of this great plan.
Banner Health 403(b) Plan Overview
While many Banner Health employees have a 401(k) plan, team members working through Banner Staffing Services have a 403(b) plan instead. It’s similar to a 401(k), but does have some key differences. Like a 401(k), you will contribute a portion of your income to a tax-advantaged account, where it can grow through strategic investments.
Who Can Participate?
All registry employees working through Banner Staffing Services have access to a 403(b). You are eligible as soon as you are hired, with no waiting period. This means you can start saving for the future from day one of your employment, giving you a head start on retirement planning that many workers in other industries don't have.
2025 Contribution Limits
The federal government sets annual limits on how much you can save in your 403(b). In 2025, you can contribute up to $23,500 to your 403(b). If you're 50 or older, you can save an additional $7,500 annually through catch-up contributions, bringing your total to $31,000. (These are the same limits as the 401(k) plan.)
Healthcare workers who have dedicated 15 or more years to the same organization can contribute an additional $3,000 annually, up to a lifetime maximum of $15,000.
Investment Options
Banner Health partners with Fidelity Investments to manage their 403(b) plan. If you prefer a hands-off approach, the plan automatically invests your contributions in target date funds. These funds adjust their investment strategy as you get closer to retirement, becoming more conservative over time. Simply choose the fund with a date closest to when you plan to retire, and professional managers will handle the rest.
For those who want more control, Fidelity offers a range of investment options you can choose from to customize your portfolio based on your risk tolerance and long-term goals.
Choosing Your Contribution Type
Like a 401(k), your 403(b) offers two distinct approaches to managing taxes on your retirement savings: traditional pre-tax contributions and Roth after-tax contributions.
Traditional (Pre-Tax) Contributions
Traditional contributions are taken out of your paycheck before taxes are applied. This reduces your current taxable income, potentially lowering your tax bill. Your savings can grow tax-deferred until you’re ready to withdraw the funds in retirement, at which point your distributions are taxed as ordinary income.
This approach works well if you expect to be in a lower tax bracket during retirement than you are today, or if you want to reduce your current tax burden.
Roth (After-Tax) Contributions
Roth contributions come from money that has already been taxed. While this doesn't reduce your current tax bill, it offers a powerful long-term advantage. Everything you withdraw in retirement (including any gains on your investments) will be completely tax-free.
This strategy often benefits younger workers who expect their income (and tax bracket) to increase over time, or anyone who values the certainty of tax-free retirement income.
Combining Both Approaches
You're not limited to choosing just one contribution type. Many financial advisors recommend splitting contributions between traditional and Roth options for flexibility in retirement.
Getting Started and Managing Your Account
Participating in the Banner Health 403(b) plan is pretty easy. Fidelity's customer service team can help you enroll over the phone, and their online platform makes ongoing management convenient.
You can contact Fidelity at 800-343-0860 for English-speaking assistance or 877-297-3017 for Spanish-speaking support. Their website, accessible at netbenefits.com/BannerHealth, provides 24/7 access to your account information and management tools.
One of the plan's most flexible features is your ability to adjust contributions at any time. Unlike some retirement plans with restrictive enrollment periods, you can increase, decrease, or temporarily stop contributions whenever your financial situation changes.
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Withdrawal Rules and Retirement Planning
Generally, you'll want to leave your money invested until at least age 59½ to avoid early withdrawal penalties. After this age, you can begin taking distributions as needed, though you're not required to start withdrawals until age 73. (Even that only applies to pre-tax funds. Roth contributions are not subject to required minimum distributions.)
When you do retire or leave Banner Health, you have several options for your 403(b) funds. You can:
Leaving them in the plan
Roll them into a new employer's plan
Transfer them to an IRA for continued tax-advantaged growth
Withdraw the funds as a lump sum
A fiduciary financial advisor can help you make the best choice for your case.
Protecting Your Loved Ones
Your 403(b) account includes important estate planning features. By designating beneficiaries, you can ensure that your loved ones can claim your retirement savings if something happens to you.
This process is simple but crucial. Take a little time to complete beneficiary forms and update them after major life events like marriage, divorce, or the birth of children.
Maximizing Your Savings for Retirement
Building substantial retirement wealth through your 403(b) takes some smart planning. Consider these strategies for optimizing your results:
Start contributing as early as possible, even if you can only afford small amounts initially. The power of compound growth means that money invested in your twenties and thirties has decades to multiply.
Increase your contributions gradually over time. Many successful savers begin with modest contributions and increase them annually, often timing increases with salary raises so they barely notice the difference in their take-home pay.
If you’re eligible, take full advantage of catch-up contributions. These provisions exist because lawmakers recognize that many people need to accelerate their savings as retirement approaches.
Diversify your investments across asset classes. This helps reduce risk by not putting all your eggs in one basket.
Review your investment choices periodically. While target-date funds provide excellent default options, your needs may change over time, warranting adjustments to your investment strategy.
If you're approaching retirement, consider working with a fiduciary financial advisor. Fiduciary advisors are legally obligated to act in your best interests and disclose any conflicts of interest they may have. A qualified fiduciary can help you choose the best withdrawal strategy, optimize your Social Security timing, and coordinate your 403(b) with other retirement accounts to minimize taxes and maximize your income throughout retirement.
Banner Health's 403(b) vs. 401(k): What’s the Difference?
Banner Health’s 403(b) plan is similar to the company’s 401(k). So what’s the difference?
Eligibility Differences
The most significant distinction lies in who can access each plan. The 403(b) serves registry team members working through Banner Staffing Services, while Banner Health's 401(k) plan is available to regular full-time, part-time, per-diem, and flat-rate team members.
No Employer Matching
One of the most notable differences involves employer contributions. Under Banner Health's 401(k) plan, the company matches employee contributions dollar-for-dollar up to 4% of eligible compensation after an employee's one-year anniversary. Unfortunately, contributions to a 403(b) do not include this match.
Contribution Structure Variations
Both plans offer similar contribution limits ($23,500 for 2025), but they handle contribution requirements differently. The 401(k) plan requires that the first 4% of contributions be made on a pre-tax basis, with additional contributions allowed as either pre-tax or Roth. The 403(b) offers more flexibility, allowing you to choose any mix of pre-tax and Roth contributions from the start.
Special Catch-Up Opportunities
Both plans offer standard age 50+ catch-up contributions and the new super catch-up for ages 60-63. However, the 403(b) provides an additional benefit not available in 401(k) plans: the 15-year service catch-up, allowing eligible participants to contribute an extra $3,000 annually (up to a $15,000 lifetime limit) if they have 15 or more years of service at Banner Health.
Which Plan Is Better?
Neither the 403(b) or 401(k) is superior to the other. They're designed for different employee populations with different needs. 401(k) participants benefit from employer matching, which provides immediate guaranteed returns on their contributions. 403(b) participants enjoy greater contribution flexibility and the potential for 15-year service catch-up contributions.
Both plans partner with Fidelity Investments for professional investment management and offer similar investment options, including target-date funds and various mutual fund choices. This consistency ensures that regardless of which plan you're eligible for, you'll have access to quality investment options.
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Planning for a Better Future Today
Your Banner Health 403(b) is a great opportunity for financial independence and security in retirement. Every dollar you contribute today has the potential to grow significantly in the years to come.
Of course, planning your retirement can get complicated fast. It’s easy to make a costly mistake. If you’re nearing retirement age, TrueWealth Financial Partners can help you finalize your plans so you can retire with confidence when the time comes.
Don't wait to get started. Schedule a free consultation with one of our fiduciary financial advisors, and we’ll be happy to help you in any way we can.
FAQs
Who is eligible for the Banner Health 403(b) plan?
The Banner Health 403(b) plan is available to all registry employees working through Banner Staffing Services. You're eligible from day one of your employment with no waiting period.
How much can I contribute to my 403(b) in 2025?
You can contribute up to $23,500 in 2025.
If you're 50 or older, you can contribute an additional $7,500 ($31,000 total).
If you have 15+ years of service with Banner Health, you can contribute an extra $3,000 annually (up to a $15,000 lifetime limit).
Can I change my contribution amount or stop contributing?
Yes, one of the best features of the Banner Health 403(b) is its flexibility. You can increase, decrease, or temporarily stop contributions at any time.
Does Banner Health match my 403(b) contributions?
No, the 403(b) plan for registry employees does not include employer matching contributions. However, the tax advantages and investment growth potential still make it a valuable retirement savings tool.
Can I contribute to both traditional and Roth options?
Yes, you can split your contributions between traditional and Roth options. Many financial advisors recommend this approach for tax diversification in retirement.
What happens to my 403(b) if I leave Banner Health?
You have several options:
Leave the money in the plan (if allowed)
Roll it into a new employer's plan
Transfer it to an IRA
Withdraw the funds (subject to applicable taxes and penalties)
Can I contribute to both a 403(b) and an IRA?
Yes, you can contribute to both. However, your ability to deduct traditional IRA contributions may be limited based on your income level since you participate in a workplace retirement plan.
What are the fees for the plan?
Banner Health's 403(b) plan maintains relatively low costs compared to many retirement plans. Contact Fidelity for specific fee information related to your investment choices.
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