Navigating the Marshfield Clinic Health System Benefits Package
By Jared Andreoli, CFP®, CSLP®
As a physician with Marshfield Clinic Health Systems, you’re likely busy with your patients and practice. Perhaps you haven’t paid much attention to the comprehensive array of benefits the Clinic offers its physicians. Or maybe you’re not sure about all the rules and restrictions and how to apply these to your own financial situation.
Navigating these benefits can be a complex task due to the depth of what’s being offered. How much should you contribute to your 401(k) account? Should you participate in the 457(b) plan? (What is a 457 (b) or (f) plan, anyway?) What’s the difference between these and the “Retirement Plan” offered by the Clinic? What are the tax implications?
Here is a primer to summarize the basics and get you started.
Understanding the Marshfield Clinic Health System Retirement Plan (Mandatory)
The first benefit mentioned in the Physicians Benefit Summary is the Retirement Plan. This is an employer-sponsored and funded 401(a) retirement account for eligible physician-employees and a common benefit for government agencies and non-profit organizations. Marshfield contributes an annual amount up to 3% of your base salary, up to the Social Security wage base. An additional 3% of salary is contributed above this level to a maximum of your base salary or $305,000, whichever is less. You don’t make any contributions to this account.
Investment choices may be limited to more conservative selections. Upon retirement or severance (subject to a vesting schedule), the account may be rolled over to an IRA or other qualified plan.
Maximizing Your 401(k) Contributions with Marshfield Clinic (Voluntary)
Marshfield offers a payroll-deferred employer-sponsored 401(k) plan. You may contribute up to 100% of your compensation to the annual IRS maximum ($23,000 for 2024; projected to be $23,500 in 2025) with a $7,500 “catch-up” (projected to increase to $10,000 for 2025) contribution allowed if you’re age 50 or older. Accounts may be tax-deferred, after-tax Roth, or a combination. Marshfield will match 50% of your contributions up to a maximum of 6% of your salary or a salary level of $305,000, whichever is less.
As with most 401(k) accounts, you select your investments, allocations, the amount of your payroll deferrals, and their tax treatment.
Exploring Additional Savings Options: The 457(b) and 457(f) Plans
457 plans are additional retirement accounts that are often offered to highly compensated employees. The more common of these plan types is the 457(b) account (deferred compensation), where you may defer additional payroll dollars toward a tax-deferred retirement account. Contributions are flexible and can be started, stopped, reduced, or restarted at any time, and do not affect your other retirement contribution limits. You choose your investments and these can be changed at any time. Your account stays tax-deferred and inaccessible until your separation from service or retirement and can be rolled over to an IRA or other qualified account. Withdrawals at that time are at ordinary income tax rates.
A second variation, called a 457(f) plan, is available to physicians elected to Class A status and working at least 40% of full-time employment (FTE). Like the 401(a) retirement plan, this is an employer-funded account. Those who work at least 80% of FTE will receive an annual $10,000 (prorated quarterly) employer contribution to their (f) account, while those between 40-80% FTE will receive a partial contribution. Once enrolled, you would be fully vested with all contributions, but note that all contributions are taxable when deposited and you’ll be required to make an annual tax-related designation on the contributions.
Essential Disability, Accident, and Life Insurance Benefits for Physicians
To shield you and your family from the uncertainty in life, Marshfield offers insurance benefits to its physicians. You are automatically enrolled in the Group Life Insurance plan with a death benefit of 2x your salary to a maximum of $400,000. You have the option of purchasing (premiums paid through payroll deductions) both additional “term life insurance” and accidental death and dismemberment insurance. These are portable upon severance. Further, you are automatically with $250,000 of travel/accident insurance while on Clinic business.
Physicians at Marshfield are provided both short-term and long-term disability coverage. Short-term coverage takes effect after 7 days, with 80% of salary coverage from day 8-90. After 90 days, salary continuation drops to 60% through the 180th day. Long-term coverage benefits are 60% of salary up to a monthly maximum of $15,000.
Navigating Health and Dental Insurance Options at Marshfield
As you would expect, Marshfield offers several competitive health insurance plans as well as two choices of dental plans. For these, you should consider whether you require an individual or family plan and affordable deductibles. Remember that higher deductibles and copayments often reduce the monthly premiums you would pay through payroll deductions.
Professional Perks: License Fees, Liability Coverage, and Continued Education
MCHS covers your State licensing fee and DEA registration fees. The Clinic also provides a self-insurance Professional Liability program and supplemental professional liability coverage through the Wisconsin Patient Compensation Fund.
Marshfield provides a $5,800 travel allowance each year, comprising ten meeting days and two travel days of Continued Medical Education (CME). These days are incorporated into the Clinic’s annual work requirement for shift physicians.
Time Off and Relocation Benefits for Marshfield Clinic Physicians
Physicians on a Monday-through-Friday schedule are entitled to vacation time according to a schedule based upon years of service. If you are a part-time or new physician for Marshfield, you may be subject to a prorated schedule based upon months of service. Shift workers outside of the Monday-through-Friday schedule have their vacation time already factored into their work requirements.
The Clinic provides a relocation allowance up to $20,000 maximum, using a MCHS-approved professional moving service or self-move expenses. This allowance covers standard household goods and personal items. Note that this is a taxable expense at ordinary income rates.
Personalized Financial Guidance for Marshfield Clinic Physicians
Even with this summary, you may have questions on how these benefits apply to your own financial situation. We at Simplicity Financial LLC can help!
Reach out to us by emailing jared.andreoli@simplicityfinancialllc.com or calling 414-207-6473 and let our physician-focused team help you find the best answer.
About Jared
Jared Andreoli, CFP®, CSLP®, is president and financial planner at Simplicity Financial, a fee-only RIA dedicated to helping early-career physicians conceptualize their financial picture and achieve their financial goals. Jared specializes in devising individualized financial road maps for clients, and he loves nothing more than a full day meeting with clients who value his partnership to solve problems—big and small.
After college, Jared spent six years working as a mutual fund administrator for a large company. While he learned an immense amount about the financial world, he was missing the personal connection of working with individual clients. Combining his passion for finance and personal connection, he established Simplicity Financial in 2017.
Jared has a degree in finance with a concentration in financial planning from Western Kentucky University, along with the CERTIFIED FINANCIAL PLANNER™ (CFP®) and a Certified Student Loan Planner (CSLP®) certifications. Outside of work Jared enjoys cooking and traveling. He played baseball in college and still coaches occasionally. He and his wife recently welcomed a daughter, who occupies most of their time. To learn more about Jared, connect with him on LinkedIn.