If you’re a Mayo Clinic employee getting close to retirement, your 403(b) plan is likely one of your biggest financial tools. The Mayo Clinic 403(b) is a tax-advantaged retirement account funded through your paycheck, with automatic enrollment starting at 4%. Before retiring, you’ll want to understand how enrollment works, how employer contributions are structured, and what steps you can take to prepare your account for the transition into retirement.
At Tiarks Financial, we work with countless employees across Rochester, MN, Pine Island, MN, and the greater Southeast Minnesota region who want a clearer, more confident path into retirement. This guide breaks down the essentials in plain, everyday language—no jargon or complicated fine print.
What the Mayo Clinic 403(b) Plan Actually Is
The Mayo Clinic 403(b) works a lot like a workplace savings plan, similar to a 401(k) but designed specifically for nonprofit organizations. You contribute a percentage of your paycheck, Mayo contributes additional money on your behalf, and your savings grow tax-deferred while you’re still employed. Fidelity is the recordkeeper, meaning your account is held and managed through Fidelity’s platform.
Automatic Enrollment and Why Most Employees Never Change It
New Mayo employees are automatically enrolled in the 403(b) at a 4% contribution rate unless they actively choose something different. This default is meant to get people saving right away, but in practice, most employees never change their contribution percentage—even after their financial situation improves or their retirement goals evolve.
In Southeast Minnesota, we meet so many people who say, “I’m still at 4% because that’s what I started with years ago.” Unfortunately, that number may not be enough to create the retirement comfort they want. As you get closer to retirement, knowing your contribution rate—and whether you should adjust it—becomes increasingly important. This is one of the first things we review with Mayo Clinic employees during our 403(b) Planning
process.
How the Employer Match Works
Mayo Clinic contributes to your retirement account in two different ways:
- A core contribution that Mayo makes no matter what you put in
- A matching contribution based on how much you contribute from your paycheck
The exact percentages depend on your position and years of service, but the important thing is this: if you’re only contributing the automatic 4%, you may be leaving employer money on the table. Making sure you’re receiving the full match is one of the simplest ways to boost long‑term retirement savings without increasing your financial stress.
Fidelity Investment Options: Active, Passive, and a Brokerage Window
One of the strengths of the Mayo Clinic 403(b) is the wide range of investment options available through Fidelity. You can choose:
- Passive funds—lower‑cost options that track broad markets
- Active funds—professionally managed investments with more hands‑on oversight
- A self‑directed brokerage option—a feature many employees don’t realize exists
The brokerage window opens the door to an even wider selection of Fidelity investments, beyond the standard choices listed on the main menu. For some employees, especially those with larger balances or specific investment preferences, this added flexibility can be meaningful.
The Little‑Known Fact: An Outside Advisor Can Help You While You’re Still Employed
This is one of the biggest surprises for Mayo Clinic employees across Rochester and Southeast Minnesota: you can work with an outside financial advisor—like Tiarks Financial—to review and manage your 403(b) while you’re still working at Mayo. Many employees assume they must wait until retirement to get help, but that’s simply not the case.
We can walk you through your specific Fidelity investment menu, help you compare active vs. passive options, discuss whether the brokerage account makes sense, and make sure your contributions and risk level match your retirement timeline. You don’t have to guess, and you don’t have to do it alone.
More details for Mayo employees are available here: Mayo Clinic Employees.
Rollover Strategy When You Retire from Mayo
When you retire, you’ll have a decision to make: keep your 403(b) at Fidelity under Mayo’s plan or roll it over to an individual retirement account (IRA). There’s no one-size-fits-all answer, but here are the most common reasons people choose to roll over:
- Simplification: many retirees prefer having all accounts in one place
- More investment options: IRAs usually offer wider flexibility
- Easier distributions: setting up retirement income is often smoother in an IRA
On the other hand, some retirees keep funds in the Mayo plan because they like the structure or specific investment choices. The key is making the choice that aligns with your long‑term plan, taxes, and income needs.
When you work with Tiarks Financial, we walk you through each option so you feel confident about whichever path you choose. Our team has more than 20 years of experience helping Mayo Clinic retirees in Rochester, Pine Island, and throughout Southeast Minnesota make this transition smoothly.
FAQ
Can an outside advisor help me with my Mayo 403(b)?
Yes. You can work with an independent financial advisor at any time—even while you are still employed at Mayo Clinic. An advisor can help with investment selection, contribution strategy, and preparing for retirement.
What happens to my 403(b) when I retire from Mayo?
Your account stays with Fidelity unless you choose to roll it over to an IRA. You’ll also be able to set up withdrawals or income strategies depending on your retirement needs.
Do I have to keep contributing at the default 4%?
No. You can change your contribution rate at any time, and raising it may help you take full advantage of the Mayo employer match.
Are the Fidelity investment options customizable?
Yes. You can choose from active funds, passive funds, target‑date funds, or use a self‑directed brokerage account for additional choices.
Can I meet with someone locally for help?
Absolutely. Tiarks Financial works with employees across Rochester, Pine Island, and surrounding Southeast Minnesota communities.
Wondering What to Do With Your Mayo 403(b)?
Tiarks Financial has 20+ years advising Mayo Clinic employees. If you’re approaching retirement and want clear, friendly guidance, schedule a free conversation here.
