The Penn Medicine acquisition of Doylestown Hospital has left many employees wondering: What does this mean for my retirement savings? For years, you’ve been saving diligently through a 403(b) plan, and with this merger, there’s a strong chance that Penn’s retirement structure—built around a 403(b) as well—will replace Doylestown’s current setup in important ways. These changes can feel complicated, but with the right understanding and guidance, they also open up new opportunities.
This blog is designed to help Doylestown Hospital employees navigate the transition from Doylestown’s 403(b) + 457 arrangement to Penn’s 403(b) system. We’ll explain the key differences, outline what will change, and provide actionable strategies for making the most of this shift.
What is a 403(b) Plan and Why Do Hospitals Use It?
The 403(b) plan has long been a staple of retirement savings for nonprofit organizations such as hospitals, schools, and charities. Employees contribute pre-tax dollars, reducing taxable income today and growing investments tax-deferred until retirement.
Many Doylestown employees have been participating in these plans for years, and for good reason: 403(b)s are straightforward, accessible, and allow for steady retirement savings.
How Penn Medicine’s 403(b) Is Structured
Here is where the most meaningful differences show up. Doylestown offers a 403(b) plus a 457; Penn uses a 403(b) only, but with a different and more generous employer contribution formula. Doylestown’s match has been 100% of the first 2% you contribute and 50% of the next 4% (a total of 4%). Penn’s design pairs age-based employer contributions (for example, 5% for age 40 and up) with a matching plan up to an additional 5%, creating the potential for materially higher employer dollars going into your account each year.
Penn does not offer a 457 plan. Instead, eligible employees may have access to a Supplemental Retirement Annuity (SRA) and, for certain highly compensated roles, a Supplemental Executive Retirement Plan (SERP).
What Happens to Your Existing Retirement Accounts?
This is one of the most pressing concerns for Doylestown employees: Do I lose my 403(b)? What happens to the money I’ve already saved?
The good news: Your money is yours. As the merger completes, your qualified plan assets will transfer to Penn’s new custodian at TIAA—not disappear. This is an administrative transition, which means you won’t need to request a distribution to move your retirement savings. After the transfer, you will make elections within the Penn 403(b) to align contributions and investments with your goals.
While the mechanics are handled for you, it is still an ideal moment to review and update your investment mix, contribution rate, and beneficiary designations to ensure they reflect your strategy under Penn’s plan design.
The Importance of a Thoughtful Transition Strategy
This transition is not just clerical. How you re-optimize within Penn’s structure can have significant long-term implications.
Maximize employer money: Understand Penn’s age-based contribution and match structure and set your contribution rate to capture the full employer amounts.
Last-chance deferrals: If you are still eligible to contribute to Doylestown’s 457 before the changeover, that can be a valuable, time-limited tax-deferred opportunity that won’t exist under Penn.
Revisit allocation: A new custodian is a natural time to confirm your portfolio fits your goals, risk tolerance, and time horizon.
The Tax Angle: More Than Just Investments
The biggest tax change for many Doylestown employees will be the loss of the 457 as an additional tax-deferred “bucket,” which can increase current-year taxable income once contributions stop. Planning ahead by calibrating your 403(b) deferral rate under Penn and, where applicable, using the SRA or other supplemental options can help keep your long-term plan on track. If you’ve built up meaningful balances, coordination with your broader tax strategy (Roth vs. pre-tax, future RMDs, and Social Security timing) becomes even more important.
Self-Directed Brokerage Options: More Choice, More Customization
Both Doylestown’s current plan and Penn’s 403(b) design allow participants to use a Self-Directed Brokerage Account (SDBA). An SDBA sits alongside the plan’s core investment lineup and opens access to a broader universe of funds and ETFs within the retirement plan’s tax-advantaged wrapper.
For employees who want a more tailored approach—or who have complex needs—this is where a firm like Rockwood can help. Through the SDBA, we can implement best-in-class, customized portfolios that go beyond the standard target-date or index fund choices, while keeping costs and risk in view.
Why Professional Guidance Matters
For many employees, the decisions tied to this transition represent hundreds of thousands of dollars in lifetime savings potential. Small missteps—like missing part of the match, taking the wrong level of investment risk, or letting old allocations drift—can have lasting consequences. A fiduciary partner like Rockwood can help translate Penn’s plan structure into a clear, personalized strategy.
Sam is committed to delivering comprehensive, conflict-free financial advice to individuals and their families. He joined Rockwood in 2016 and brings more than 15 years of experience guiding physicians at both the University of Pennsylvania and Doylestown Hospital. Today, he leads Rockwood’s initiative to support physicians and executives as they navigate the financial transitions brought on by the UPenn merger. Sam lives in Buckingham with his wife, Ellie—a physician now practicing at Doylestown after many years at UPenn—and their two sons.