Working at Cleveland Clinic comes with a variety of financial perks—chief among them are the retirement plans that can help you build long-term wealth. Understanding how to leverage each plan fully can feel overwhelming. Below, we break down the key features of the 401(a), 403(b), and 457(b) plans, plus the Equity Accumulation (EA) program. We’ll also explain how to implement a “mega backdoor Roth” strategy within the 403(b), so you can take your retirement savings to the next level.

The 401(a) Cash Balance Plan (CBP)

• Fully Funded by Cleveland Clinic: You don’t contribute to the CBP; Cleveland Clinic automatically makes contributions each pay period based on your age.

Age	Contribution Percentage
Under 35	2.5%
35 – 39	5%
40+	7%

 

• Vesting: You’re fully vested after three years of service. “Vesting” means the funds are yours to keep if you leave after meeting that time requirement.Key Takeaway: Think of the 401(a) as a no-brainer boost to your retirement savings. Stay employed for at least three years, and you’ll lock in all employer-contributed funds.

The 403(b) Savings & Investment Plan (SIP)

The 403(b) (SIP) can supercharge your retirement savings through pre-tax, Roth, and after-tax contributions.

Automatic Enrollment

• Enrolled at 3% pre-tax contributions 31 days after your start date.You can adjust this at any time through Fidelity’s website.

Employer Match

• Half of your pre-tax or Roth contributions, up to 6% of your pay.That means contributing at least 6% ensures the maximum 3% employer match each pay period.A three-year vesting period applies to the Clinic’s contributions, but your own contributions are always 100% yours.

Maximum Contributions (2025)

• Pre-Tax + Roth Limit: $23,500 if you’re under 50; $31,000 if 50+ (includes catch-up).
• Employer Match Limit: $10,500.
• Total 403(b) Limit: $70,000 for all contributions combined—pre-tax, Roth, after-tax, and the employer match (this excludes the age 50 catch-up).

Mega Backdoor Roth StrategyOne of the most powerful features of Cleveland Clinic’s 403(b) is the option to contribute after-tax funds—beyond your pre-tax/Roth and employer match—and then convert them to a Roth account. This is often referred to as the “Mega Backdoor Roth” because it allows high-income earners to potentially add thousands of extra dollars of tax-free growth each year.

• How It Works:
  Contribute up to the plan’s total limit of $70,000. This includes your pre-tax, Roth, after-tax, and the employer match.Any funds you put in after-tax (above the standard $23,500 pre-tax/Roth limit) can then be automatically converted to Roth inside the plan (“in-plan Roth conversion”).Future growth on these converted amounts can accumulate tax-free—a big advantage if you’re looking for long-term growth and expect higher taxes in retirement.
• Why Consider It: If you’re already maxing out the regular pre-tax/Roth limit and you still have room under the $70,000 cap, after-tax contributions can be a game-changer. However, it does involve more complexity, so consider consulting a financial advisor before opting in to the Mega Backdoor Roth strategy.

 

The 457(b) Plan

• Who’s Eligible: Staff members with a base salary of $350,000 or higher in 2025.
• Contribution Limit: You can contribute up to $23,500 (pre-tax only) in 2025.
• No Employer Match / No Catch-Up: Unlike the 403(b), there’s no match, and no age 50 catch-up.
• Non-Qualified Plan: Assets in a 457(b) are subject to the general creditors of Cleveland Clinic—a key difference from qualified plans like the 403(b).

Key Takeaway: If you’re a high earner, the 457(b) can help you defer even more income. Just be aware of the nuances of a non-qualified plan.

Equity Accumulation (EA)

• Bridging the Gap: If your earnings exceed the IRS annual compensation limit ($350,000 in 2025), Cleveland Clinic may provide an Equity Accumulation (EA) payment of up to 10% of the pensionable compensation above that limit.
• Vesting & Timing: Typically paid in January after you complete three years of service.
• Benefits to You: The EA program helps offset the limitation on qualified plan contributions, helping to ensure you can still build a robust retirement fund even if you earn above the IRS cap.

Ready to Explore the World Your Wealth Makes Possible?

Schedule a Free Consultation: Talk to our knowledgeable financial advisors about your 401(a), 403(b), and even 457(b) and how these retirement plan options fit into your broader financial plan.

Take charge of your financial future. Contact us today to build a strategy that meets your personal goals and secures your path to retirement success!