The cheapest year to start retirement
is the one you almost skipped.

The most important number in your benefits packet.

The structure of your employer match determines your minimum contribution. Common 2026 NP-employer structures:

• Dollar-for-dollar up to 4 percent. Most generous. Contribute 4 percent of salary, employer adds 4 percent. Hospital systems, large medical groups.
• 50 cents on the dollar up to 6 percent. Common at private practices. Contribute 6 percent, employer adds 3 percent.
• Tiered. 100 percent on first 3 percent, 50 percent on next 2 percent. Capture the full match by contributing 5 percent.
• Safe harbor 3 percent. Employer contributes 3 percent regardless of what you contribute. Still contribute on top.
• No match. Roughly 18 percent of NP employers, mostly small private practices and 1099 arrangements. Different math applies. See HSA and IRA below.

What this looks like in dollars

For an NP earning $118,000 in year one with a 50 percent match up to 6 percent of salary:

Compounded at 7 percent real return over 35 years, that single year's deposit grows to about $113,000. The same year skipped costs you that future balance. Multiplied across 3 to 4 skipped early years (very common), the gap reaches $400,000+.

The decision that flips around year 3.

Traditional 401(k) contributions reduce your taxable income today, taxed when you withdraw. Roth contributions are taxed today, tax-free when you withdraw. For a new NP the choice flips depending on your situation:

Year one as an NP, single, $115,000 to $130,000 income. You are firmly in the 24 percent federal bracket. Your future retirement bracket is likely 22 to 24 percent. Slight edge to Roth, especially in early years when contributions have the most time to grow tax-free.

Year two or three, married filing jointly, $200,000+ household income. You are at or near the 32 percent bracket. Future retirement bracket likely lower. Edge shifts to traditional.

If your employer offers Roth 401(k): for years 1 through 3 of your NP career, defaulting to Roth is often the cleaner choice. Tax rates are unlikely to be lower in 30 years, your peak earning years are still ahead, and Roth balances are not subject to required minimum distributions.

What to actually contribute, year by year.

Career year	Realistic target	Stretch target	What it gets you
Year 1	Match-capture %, often 4-6%	10%	Full match. Building habit.
Year 2	10%	15%	Crossing into meaningful build.
Year 3	15%	Max ($23,500 in 2026)	On track for retirement at 62-65.
Year 5+	Max 401(k) + IRA + HSA	Backdoor Roth IRA	FIRE-adjacent if you want it.

2026 contribution limits to know: 401(k) elective deferral $23,500, IRA $7,000, HSA self-only $4,400 / family $8,800. If you are over 50 there is a $7,500 catch-up on 401(k), but most NPs reading this are well under.

Where to put the dollars once the match is captured.

The standard priority order for a new NP after match capture:

1. Capture full 401(k) match.Whatever percentage gets the full employer contribution. This is non-negotiable.
2. Max HSA if eligible.Triple-tax-advantaged: deductible going in, tax-free growth, tax-free out for medical. Best account in the tax code. $4,400 self / $8,800 family in 2026.
3. Max Roth IRA.$7,000 in 2026. Use a backdoor Roth if your income is above the direct contribution phaseout ($165k single, $246k MFJ). Tax-free growth, no RMDs, broader investment selection than most 401(k)s.
4. Increase 401(k) toward the $23,500 max.If you have additional capacity after HSA and IRA, layer it back into the 401(k).
5. Taxable brokerage.For anything beyond, or for goals shorter than 59.5 years from now (down payment, sabbatical, etc.).

Why the HSA beats your 401(k).

An HSA is the only account in the U.S. tax code that is triple-tax-advantaged: contributions reduce taxable income, growth is tax-free, withdrawals for qualified medical expenses are tax-free. After age 65, withdrawals for any purpose are taxed like a traditional IRA, with no penalty.

To contribute, you need a high-deductible health plan (HDHP). Many NP employers offer HDHP options alongside PPOs. Run the math: a young, healthy NP with low expected medical use often comes out ahead by choosing the HDHP, banking the premium savings into the HSA, and treating it as a stealth retirement account.

Critically: do not spend the HSA on current medical bills if you can avoid it. Pay out of pocket, save the receipts, and reimburse yourself decades later (HSAs have no time limit on reimbursement). The dollars compound tax-free in the meantime.

Why student loans should not fully delay retirement.

The instinct to "wipe out the loans first, then start saving" feels disciplined. The math is rarely on its side. Three reasons:

• Compounding asymmetry. A dollar saved at 28 has 35+ years to compound. A dollar saved at 33 has 30 years. The 5-year delay roughly cuts the final balance by 30 percent at 7 percent real returns.
• Match is irreplaceable. You cannot back-fill prior years of employer match. Each year you skip, that match is gone.
• Federal loan rates are not catastrophic. Most federal loans for NPs sit in the 6 to 8 percent range. After-tax retirement returns historically average 5 to 7 percent. The gap is real but smaller than people assume, and the match plus tax deferral usually closes it.

The right behavior is parallel: meet the minimum loan payment, capture the full match, fund the HSA, then split additional dollars between aggressive loan payoff and retirement. Pure sequential approaches almost always lose.