Overview
Rady Children's Health helps you prepare for retirement with the easy-to-use, tax-advantaged 403(b) plan.
Key advantages
Rady Children's Health contributions
Rady Children's Health matches a portion of what you contribute to your account to help your savings grow faster.
Different contribution tax advantages
You’ll pay less in income taxes when you make pre-tax contributions from your paycheck, but you will owe taxes when you withdraw from your account. You will pay taxes on Roth post-tax contributions before they are deducted from your paycheck, but you will not owe taxes when you withdraw from your account.
Tax-deferred investment growth
Pre-tax and Roth post-tax contributions let your money grow without being taxed.
Wide range of investment options
You choose how you want to invest your money.
Eligibility and enrollment
You are immediately eligible upon your date of hire. You may enroll or change your contribution rate and investment elections at any time by visiting the Empower website, calling 833-246-2403, or by downloading the app today.
Your Contributions
You may contribute between 1% and 85% of your eligible pay to your plan account, up to annual IRS limits.
2026 contribution limits
- $24,500 if you’re under age 50
- $32,500 if you are age 50 or older this year (which includes an additional $8,000 in catch-up contributions)
- $35,750 if you are age 60 – 63 this year (which includes an additional $11,250 in catch-up contributions)
Pre-tax vs. Roth post-tax: What’s the difference?
The 403(b) plan gives you the flexibility to save for retirement with pre-tax contributions, Roth post-tax contributions, or both.
- With pre-tax contributions – the money goes into your account before taxes are deducted, so you keep more of your take-home pay
- With Roth post-tax contributions – the money goes into your account after taxes are withheld, but both your contributions and any associated earnings can be withdrawn tax-free in retirement*
*In order for Roth earnings to be withdrawn tax-free, you must be at least 59½ (or the withdrawal follows death or total disability), and at least five years must have elapsed since your first Roth contribution.
Catch up!
Take advantage of the opportunity to contribute up to an additional $8,000 in catch-up contributions if you are 50 or older this year, or an additional $11,250 if you are age 60 – 63.
Boost your retirement income with HSA savings
If you’re enrolled in an HDHP with a Health Savings Account (HSA), you can invest the money in your HSA to build long-term savings for retirement! An HSA is a tax-free way to save money and maximize how much of your 403(b) or other retirement accounts can be used to support your lifestyle.
Rady Children's Health Contributions
Rady Children's Health helps you reach your retirement goals faster by making valuable company contributions to your account:
- 0–9 years of service: Employer match of 100% on up to the first 3% of eligible pay you contribute
- 10+ years of service: Employer match of 200% on up to the first 3% of eligible pay you contribute
Please note that to receive the match, you must work 1,000 hours per year.
Note: Your vesting in employer matching contributions depends on your hire or rehire date and your years of service. Please contact the benefits team for more details.
Name a Beneficiary
It’s important to designate a beneficiary to receive the value of your 403(b) plan account in the event you die before beginning to receive your benefit. As personal circumstances change, be sure to keep that information up to date. Visit the Empower website to add or change your beneficiary.
Withdrawals and Loans
The money in your account is a long-term investment to help you prepare for your financial needs in retirement. However, under certain circumstances, you may be able to access money from your account before reaching retirement age. For more information, visit the Empower website or call 833-246-2403.
Think before you act
- If you’re considering taking a withdrawal or loan from your plan account, be sure to think about the impact it may have on your future. Taking money from your account now may lead to a smaller savings balance when you retire
- Not only are you taking money away from your retirement savings, but the burden of repaying the loan may make it harder to get back on track
- If you take a loan, you’ll also lose more money to taxes because the interest payments on your loan are made with money that has already been taxed, and it will be taxed again when withdrawn from your account
- If you withdraw pre-tax money from your plan account, in addition to paying current taxes on the money, you may have to pay an additional 10% penalty tax if you are younger than age 59½ (or, age 55 if you have retired or left Rady Children's Health)
- If you plan to take a leave of absence and are currently paying off a loan, contact the Benefits Department at benefits@choc.org or benefits@rchsd.org for stopping and also restarting your loan upon returning from your leave
Financial Counseling through Empower
Take an active role in your retirement planning with these helpful tools and resources. If you're an Orange County employee, reach out to our Empower consultant, Brian Hand, for help navigating the Empower website and app. If you're a San Diego employee, reach out to Melissa Diaz, available to help in both English and Spanish. Learn how to use online retirement plan tools, make contribution rate or allocation revisions, discuss retirement readiness, investment choices, account reviews, rollovers, and more.
To schedule an appointment, visit https://rady.empowermytime.com.
Tools & Resources
Online tools
Empower offers a variety of resources to help you maximize your retirement savings.
- Learn more about Empower
- Walk through the Empower website
- Empower yourself to reach your financial goals by exploring the The Empower Learning Center