Back-to-School Retirement Planning Checklist for Professors
The start of a new academic year is exciting, demanding, and full of competing priorities. It is also a natural point for professors to pause and make sure their retirement, tax, and benefit elections are still aligned with their goals. A few intentional adjustments now can help reduce surprises later and may create meaningful long-term planning opportunities.
As academic-year payroll resumes, use this checklist to review the benefit decisions that may have an impact on your financial plan:
1. Review your retirement plan contributions – Start by checking your voluntary retirement plan contributions and confirming that you are contributing as much as your personal budget allows. The IRS regularly increases the annual maximum deferral amount for 401(k) and 403(b) plans, so last year’s election may fall short of the current limit. For 2026, the maximum voluntary contribution amount is $24,500. If you are age 50 or older, you may be eligible for an additional $8,000 catch-up contribution, for a total of $32,500.
2. Do not overlook the “super catch-up” window – Professors ages 60 through 63 may be eligible for a larger catch-up contribution. The 2026 super catch-up amount is $11,250 instead of the standard $8,000 catch-up, bringing the total potential contribution for this age group to $37,750. If you are in this window, this may be a chance to accelerate retirement savings during peak earning years.
3. Revisit the 457(b) plan – Many universities also offer a 457(b) deferred compensation plan. For high-income earners who are already maximizing their main university retirement plan, a 457(b) may provide another way to defer income in the current tax year. Be sure to understand your specific plan’s distribution rules, especially because governmental and non-governmental 457(b) plans can work differently at retirement.
4. Decide between pre-tax and Roth contributions – Most university retirement plans now allow participants to contribute on a pre-tax basis, a Roth basis, or a combination of both. Roth contributions are taxed up front but may provide tax-free growth and tax-free qualified withdrawals in the future if plan rules are followed. The right mix depends on your current tax bracket, expected retirement income, estate planning goals, and broader financial picture. Taking time to evaluate this decision may help align your retirement contribution strategy with your broader tax and estate planning objectives.
5. Plan ahead for consulting income – If you earned consulting income this year, consider how that additional income may affect your tax situation. Extra income can unexpectedly push you into a higher tax bracket or increase exposure to certain surtaxes. Depending on your circumstances and eligibility, retirement plan options such as a SEP IRA may allow you to defer a portion of that income, which could affect your current-year taxable income.
6. Check your tax withholding – If your income has changed this year, now is a good time to review the withholding on your paychecks. No one wants an unpleasant tax surprise in April, and increasing withholding now may help reduce the amount owed if your income increased. The reverse is also true: if you or your spouse’s income decreased, over-withholding may create a larger refund, but it also means giving the IRS an interest-free loan throughout the year.
7. Use open enrollment strategically – Fall also brings open enrollment for benefits such as health insurance, group life insurance, disability coverage, and other employee benefits. University group life insurance plans may sometimes provide meaningful coverage at attractive rates, and many offer guaranteed coverage without a medical exam. If prior health issues have made private life insurance expensive or difficult to obtain, reviewing group options through the university may be especially important.
8. Maximize the value of your HSA – If you participate in a high-deductible health plan, double-check your HSA contribution amount during open enrollment. HSAs can serve as a long-term savings vehicle for eligible individuals because unused funds may remain available through retirement and may be used for qualified medical expenses subject to applicable rules. If cash flow allows, increasing HSA contributions may help build another tax-advantaged resource for future healthcare costs.
Summary
The start of the academic year is a natural checkpoint for professors to review retirement contributions, catch-up opportunities, Roth versus pre-tax elections, 457(b) options, consulting income, tax withholding, and open enrollment benefits. These decisions may seem small in isolation, but together they can meaningfully affect taxes, cash flow, retirement readiness, and long-term financial flexibility. Taking action before the semester gets busy gives you time to confirm your elections still reflect your goals. If you need help reviewing your university retirement planning strategy, schedule a complimentary call with one of our university advisors today.
Savant University Wealth Management (“Savant”) is an SEC registered investment adviser headquartered in Rockford, Illinois, serving clients in academia nationally. Our advisers have specific and in-depth knowledge about university employee benefit programs and retirement plans. We work with university faculty, physicians, and other professionals. We are not associated with any university, or any retirement vendor and we have no access to your private retirement or personnel information. Past performance may not be indicative of future results. Different types of investments involve varying degrees of risk. A copy of our current written disclosure Brochure discussing our advisory services and fees is available upon request or at www.savantwealth.com.
James M. Haygood
Financial Advisor
CFP®, AWMA®