This article summarizes and clarifies Northwell Health’s retirement benefits for physicians. It aligns with Northwell’s plan descriptions while removing ambiguity and adding clear action items physicians can follow to capture employer contributions and manage plan contingences.

Physicians at Northwell Health in 2026 have access to a robust, but often underutilized, retirement benefits package that offers pension benefits (for some), tax-advantaged savings plans, and supplemental options for high earners.

The problem? Most physicians are too busy practicing medicine to fully optimize these benefits, and that could cost you hundreds of thousands of dollars (or more) over the course of your career.
Our team has been providing financial planning and investment guidance to physicians at Northwell for decades. Below is a practical breakdown of each available retirement plan option, with some general thoughts on how to utilize them strategically.

Important Disclaimer This summary is intended for general informational purposes, and the benefits guide indicates it is for “Per-Diem, Part Time and Temporary Team Members.” Benefit details may vary based on your employment classification, hire date, and benefit group. Please consult your Summary Plan Description (SPD) or contact Northwell HR at (516) 734-7000 for information specific to your situation.

 

Northwell Health Pension Plan (For Eligible Physicians)

Physicians hired prior to July 1, 2018 who completed at least one year (975+ working hours) as a Northwell employee were automatically enrolled in the program. Each year that you work at least 975 hours, Northwell credits your account with the equivalent of 3% of your eligible pay.

Vesting Requirement: You must work for Northwell for three years (with at least 975 hours each year) to become vested in the plan; meaning you have earned the right to receive benefits when you retire. If you leave before completing three years of qualifying service, you forfeit your pension benefit.

Upon retirement, vested participants will begin receiving a specified benefit amount. Northwell considers the “normal” retirement age to be 65. If you are eligible, you may begin receiving benefits as early as age 55 with a minimum of five years of service, but your payment will be reduced to reflect the longer expected payout period.

Want to work past 65? Your benefit payments will begin once you retire, unless you work past age 70½, at which time you would begin receiving payments despite still working.

 

Pension Plan Pros and Cons

Eligible physicians do not contribute to the plan but will receive a specified benefit in retirement from the trust which holds the funds.

Because this benefit plan is controlled by the employer, Northwell physicians have no say in how their pension benefit dollars are invested. The plan also lacks much of the flexibility offered by other retirement plan options.

Physician Insight: Think of this as your “floor” and not your full retirement strategy. It provides stability but is highly unlikely to cover your expenses in retirement. Also, confirm your pension beneficiary designations annually.

 

401(k) or 403(b) Retirement Plans for Northwell Physicians

Depending on when you began working for the organization, you will have access to either a 401(k) or 403(b) retirement plan through Northwell. Northwell physicians are eligible once the initial year of service or 975 hours of service has been completed. This threshold is used to determine eligibility for every subsequent year as well.

 

Automatic Enrollment

Newly hired team members are automatically enrolled in the plan at 3% of their annual pre-tax salary, beginning 90 days from their hire date. Your contribution rate will automatically increase by 1% each year until you reach 10%. You may change or waive participation at any time through Northwell.

 

Employer Contributions

• Physicians who began working for Northwell prior to July 1, 2018: Employer basic contribution of 3% of eligible earnings
• Physicians who began working for Northwell on or after July 1, 2018: Employer basic contribution of 5.5% of eligible earnings

Additionally, Northwell will match 33.33% of your personal contributions up to 2% of your eligible pay. This means that to maximize employer benefits for this plan, you need to be contributing at least 6% of your annual salary to your 401(k) or 403(b) retirement plan.

 

Vesting Schedule for Employer Contributions

You are always 100% vested in your own contributions. Employer contributions vest according to the following schedule:
• 20% after 2 years of service
• 40% after 3 years of service
• 60% after 4 years of service
• 80% after 5 years of service
• 100% after 6 years of service

Note: Employees who attain age 65 while actively employed by Northwell will be fully (100%) vested in their basic and matching contributions regardless of years of service.

 

401(k) and 403(b) Pros and Cons

401(k) and 403(b) plans are a great way to save on a tax-advantaged basis over the course of your career to benefit from compounding interest.
IRS Contribution Limits: For 2026, IRS limits cap employee elective deferrals at $24,500 (or $32,500 if you are age 50 or older, which includes an $8,000 catch-up contribution). Total contributions from all sources, employee and employer combined, cannot exceed $72,000 (or $80,000 with catch-up contributions).

Physician Insight: SECURE 2.0 Act introduced a “super catch-up” provision allowing those ages 60-63 to contribute an additional $11,250 (instead of the standard $8,000 catch-up), which would mean $35,750 for that age group. Total contributions from all sources cannot exceed $83,250 (including super catch-up contributions).

Note: Contribution limits are set by the IRS and change annually.

These plans provide you with a curated list of mutual fund options that you can select within your retirement plan’s portfolio. But the available options are likely to be a small subset of what is available on the open market, meaning you may be somewhat limited in the overall growth potential and risk mitigation of your plan portfolio.

Physician Insight: Many physicians dramatically underfund this plan relative to their income. At the very least, you want to contribute at least 6% to capture full employer contributions to get maximum benefit from the Northwell employer match. However, if you are not maxing out your personal contributions, you are leaving long-term compounding value on the table.

 

457(b) and 409A Retirement Plans for Physicians

These options are available to Northwell physicians whose annual base pay and augmentation total at least $175,000 and who are classified in Benefit Group 1 or 1a. You should confirm your classification through Northwell HR if you are uncertain.

These plans allow employees to make additional pre-tax contributions to their retirement account. The goal is to give high-earning physicians a mechanism to fully maximize their annual tax-deferred savings.
• 457(b) Plan: Available to Northwell physicians working at a not-for-profit location
• 409A Plan: Available to Northwell physicians working at a for-profit location

These plans work similarly to 401(k) or 403(b) plans, but with some important differences. Most notably, these plans are considered property of Northwell rather than the employee until you withdraw the assets upon separation from employment.

 

457(b) and 409A Pros and Cons

The upside of the 457(b) plan and the 409A plan is that high earners can take advantage of additional compounding interest on pre-tax dollars. This can be a powerful tool in building toward retirement.

That said, because these plans are considered property of Northwell Health, the funds are at risk from creditors until you retire. Unlike the 401(k) or 403(b) benefits, these plans do not come with an employer match on contributions. Additionally, unlike 401(k) and 403(b) plans, 457(b) and 409A plans do not permit loans or allow for rollovers to an IRA or other retirement accounts.

Annual Plan Fee: There is a $90 annual fee for the 457(b) or 409A plan charged by Transamerica. This is a fixed fee, not a percentage of your balance. Individual investment funds within the plan also carry their own fees.

Physician Insight: This is often the most underutilized plan, and the biggest opportunity. Generally, if you choose to participate in the 457(b)/409A Plan, you should first consider maximizing your elective salary deferral contributions to the 401(k)/403(b) plan.

 

How You Should Think About Retirement Benefits

Northwell’s structure is not meant to be used in isolation. The real advantage comes from coordinating all three layers:
• Pension (if applicable): Stability and guaranteed income floor
• 401(k)/403(b): Core retirement savings + employer contributions
• 457(b)/409A: Advanced tax deferral and acceleration

The mistake we see repeatedly: physicians treat these as separate decisions instead of a unified strategy.

 

Where Most Northwell Physicians Leave Money on the Table

After working with physicians for decades, the patterns are clear:
• Contributing just enough for the employer match, but not optimizing total savings
• Ignoring 457(b)/409A options entirely
• Over-concentrating investments or defaulting into target-date funds without review
• Failing to integrate retirement planning with tax strategy, practice income, or outside investments
• Not understanding vesting schedules and leaving money behind when changing positions

These may seem like small oversights, but over the course of your career they compound and can have a significant impact on your future.

Physician Insight: All participants should confirm their beneficiary designations on an ongoing basis.

 

How Altfest Helps Northwell Physicians

At Altfest Personal Wealth Management, we specialize in helping physicians turn complex benefit systems into clear, actionable strategies. We go beyond simply “participating” in your retirement plan; we help you optimize it in the context of your entire financial life.

Our approach includes:

Retirement Plan Optimization: Determining exactly how much to allocate to your retirement accounts and taxable accounts based on your income, goals, and tax situation
Tax-Aware Planning: Coordinating retirement contributions with advanced tax strategies to reduce lifetime tax liability
Investment Oversight: Reviewing your plan allocations, not just default options, to ensure they align with your long-term objectives as well as running a coordinated plan analysis (401(k)/403(b)/457/409A + taxable accounts + pension) to set a target contribution rate and investment allocation.
Scenario Stress Testing: Modeling and monitoring your financial future across a wide range of real-world scenarios including early retirement, changes in practice income, dynamic withdrawal strategies, Social Security and pension optimization, long-term care events, the timing of Roth conversions, and other applicable scenarios unique to your situation, to ensure your plan remains resilient and adaptable over time.
Integrated Planning: Aligning retirement savings with estate planning, risk management such as life, long-term care, as well as property and casualty insurance planning, and overall wealth strategy to meet your legacy goals and values.

Northwell provides a strong retirement foundation, but it is not a complete strategy on its own. Physicians who take a proactive, coordinated approach can turn these benefits into a powerful engine for long-term wealth accumulation. Those who do not risk leaving significant value on the table.

 

Take the Next Step

If you are a Northwell physician and want clarity on whether you are making the most of your retirement benefits, we are happy to help. As a fee-only fiduciary advisor, we do not sell products or earn commissions. Our advice is objective and built entirely around your best interests.

Request a complimentary consultation to evaluate your current strategy and identify opportunities to strengthen your long-term financial plan.

Disclaimer: This document is for informational purposes only and does not constitute financial, tax, or legal advice. Investment advisory services provided by Altfest Personal Wealth Management. Altfest and Northwell are not affiliated entities. Investing in securities involves risks, including the potential for loss of principal. There is no guarantee that any investment plan or strategy will be successful. Benefit details described herein are based on Northwell Health’s 2026 Benefits Guide and may be subject to change. Individual circumstances vary. Please consult the official Summary Plan Description (SPD), Northwell HR at (516) 734-7000, or a qualified professional for guidance specific to your situation. IRS contribution limits are subject to annual adjustment; verify current limits at irs.gov.

Investment advisory services provided by Altfest Personal Wealth Management (“APWM”). All written content on this site is for information purposes only. Opinions expressed herein are solely those of APWM, unless otherwise specifically cited. Material presented is believed to be from reliable sources and no representations are made by our firm as to another parties’ informational accuracy or completeness. All information or ideas provided should be discussed in detail with an advisor, accountant or legal counsel prior to implementation. All investing involves risk, including the potential for loss of principal. There is no guarantee that any investment plan or strategy will be successful.