What is the UC 457(b) and how is it different from a private employer 457(b)?

UCLA Health physicians participate in the UC 457(b) plan, which is a governmental plan. This means it rolls to an IRA when you leave UC employment — with no 10% early withdrawal penalty before age 59½. This is a significant advantage over non-governmental 457(b) plans such as USC Keck's, which cannot roll to an IRA and remain subject to the employer's creditors.

Can Qubera manage my UCLA Health retirement accounts while I'm employed?

Not directly. UC accounts held at Fidelity NetBenefits cannot be managed by an outside advisor while you're actively employed by UC. Qubera provides a detailed investment blueprint and contribution strategy — including specific fund recommendations within the Fidelity lineup — while you're employed. After separation, we manage the rolled-over accounts directly.

How much can a UCLA Health physician contribute to retirement accounts in 2026?

A UCLA Health physician can contribute: $24,500 to the UC 403(b), $24,500 to the UC 457(b) (governmental), and after-tax contributions to the UC DCP up to the IRC 415(c) limit of $72,000 total (minus 403(b) deferral and any UCLA employer contributions). For most attendings, total tax-advantaged contributions can reach $94,000–$109,000 per year when including Backdoor Roth IRAs for both spouses.

What is the UC DCP and how does it work?

The UC Defined Contribution Plan (DCP) is a after-tax savings vehicle available to UC employees. After-tax contributions to the DCP count toward the total IRC 415(c) annual additions limit of $72,000 for 2026. Once in the DCP, those after-tax dollars can be converted to Roth in-plan within Fidelity NetBenefits — creating tax-free growth. The typical space available is the $72,000 ceiling minus your 403(b) deferral and UCLA's employer contribution, usually leaving $42,000–$47,000 per year.

UCLA Health Physician Financial Planning | UC 403(b), 457(b) & DCP Strategy

2026 contribution limits

What UCLA Health physicians can save in 2026

Total tax-advantaged capacity for a dual-physician household can exceed $200,000 per year when all three buckets are used.

$24,500

UC 403(b) elective deferral

$24,500

UC 457(b) deferral — separate limit

~$45K

UC DCP after-tax → Roth (typical space)

$72,000

IRC 415(c) annual additions ceiling

UC 403(b)

403(b) — $24,500, first priority

The UC 403(b) holds at Fidelity NetBenefits with a broad fund lineup. Employee elective deferral limit is $24,500 in 2026; catch-up is $8,000 at age 50+ and $11,250 at 60–63. Most UCLA attendings are in the 35% federal + 11.3% California bracket, which makes pre-tax contributions more efficient than Roth unless you plan to retire out of state.

UCLA makes no employer match to the 403(b). What UCLA does contribute counts toward the $72,000 IRC 415(c) ceiling — confirm your specific contribution amount with HR before calculating DCP space.

UC 457(b) — Governmental

457(b) — $24,500, separate limit, rolls to IRA

The UC 457(b) is a governmental plan — and this distinction matters more than most physicians realize. It has a completely separate $24,500 contribution limit from the 403(b): you can contribute the full $24,500 to each, for $49,000 total pre-tax. Same catch-up rates apply: $8,000 at 50+, $11,250 at 60–63.

When you leave UC employment, the governmental 457(b) rolls cleanly to a traditional IRA with no 10% early withdrawal penalty before 59½. For physicians considering early retirement or career transitions, this portability is a real financial advantage that the USC Keck 457(b) does not have.

Mega Backdoor Roth

UC DCP after-tax — up to $72,000 total

The UC Defined Contribution Plan (DCP) accepts after-tax contributions. The math: the IRC 415(c) ceiling is $72,000 for 2026. Subtract your 403(b) deferral ($24,500) and UCLA's employer contribution — the remaining capacity flows into the DCP as after-tax dollars, then converts to Roth in-plan within Fidelity the same day.

For most UCLA attendings, this creates $42,000–$47,000 of additional Roth conversion space per year. Compounded over 20 years at a 7% return, that's over $1.7 million in additional tax-free wealth — from a bucket most physicians leave entirely unused.

The most common UCLA gap: Physicians max the 403(b), stop, and assume they're done. The 457(b) ($24,500) and DCP after-tax ($42K–$47K) sit untouched. This is tens of thousands per year in unused tax-advantaged capacity.

What Qubera does

Blueprint while employed · Full management after separation

Fidelity NetBenefits does not allow outside advisors to manage UC accounts while you're employed by UCLA. Qubera provides a written investment blueprint — specific fund recommendations, contribution amounts across all three buckets, and a DCP after-tax conversion setup — that you can implement yourself within Fidelity.

After you separate from UCLA, we manage the rolled-over accounts directly at Schwab, including the 403(b) and governmental 457(b) IRA rollovers. We also coordinate Backdoor Roth IRAs alongside the employer plan to maximize total tax-advantaged exposure.

Common mistakes at UCLA Health

What we fix in the first engagement

Using only the 403(b)

The UCLA plan has three separate contribution buckets. The 457(b) has a completely separate $24,500 limit — it does not reduce your 403(b) capacity. Most new attendings don't know the 457(b) exists as a separate account, let alone the DCP. We set up all three in the first engagement.

Skipping the DCP after-tax conversion

The DCP after-tax to Roth conversion is the single highest-value action available to UCLA Health physicians who have no student loan strategy competing for the same dollars. Yet it requires a specific setup sequence in Fidelity that most physicians never initiate. We walk through this setup in the initial meeting.

Pre-tax IRA balances blocking the Backdoor Roth

UCLA physicians who rolled an old IRA into a Traditional IRA — or who made non-deductible IRA contributions without converting — can trigger the pro-rata rule when they attempt a Backdoor Roth. The fix is usually a reverse rollover of pre-tax IRA balances into the UC 403(b), which accepts incoming rollovers. We verify eligibility and sequence this correctly.

UCLA Health specific questions

What UCLA physicians ask before working with us

Does UCLA Health allow a Mega Backdoor Roth in 2026?

Yes. UC physicians can contribute after-tax dollars to the UC DCP up to the total IRC 415(c) limit of $72,000 for 2026, minus 403(b) deferral and any employer contributions, then convert to Roth in-plan within Fidelity NetBenefits. For most UCLA Health attendings, this creates approximately $42,000–$47,000 of additional Roth conversion space per year — one of the most generous Mega Backdoor Roth structures available to any employed physician.

What is the UC 457(b) and how is it different from USC's?

The UC 457(b) is a governmental plan held in a government trust. When you leave UC employment, it rolls cleanly to a traditional IRA with no 10% early withdrawal penalty before age 59½. USC Keck's 457(b) is non-governmental — it is deferred compensation owed by USC, cannot roll to an IRA, remains subject to USC's creditors, and must be distributed on the schedule elected at enrollment. The governmental vs. non-governmental distinction is arguably the most important employer plan difference between UCLA and USC physicians.

Can Qubera manage my UCLA retirement accounts while I'm employed?

Not directly. Fidelity NetBenefits does not allow outside registered investment advisers to trade or manage UC accounts while you're an active UC employee. Qubera provides a written investment blueprint — specific Fidelity fund recommendations, exact contribution amounts across the 403(b), 457(b), and DCP, and step-by-step DCP after-tax conversion setup. After you separate from UCLA, we manage the rolled-over accounts at Schwab.

How much can a UCLA Health physician save for retirement in 2026?

A UCLA Health physician using all available buckets can contribute: $24,500 to the UC 403(b), $24,500 to the UC 457(b), and approximately $42,000–$47,000 to the UC DCP after-tax (converted to Roth). That's $91,000–$96,000 per year in tax-advantaged savings — not counting Backdoor Roth IRAs for both spouses (an additional $15,000/yr for a couple). A dual-physician UCLA household can exceed $200,000 per year in combined tax-advantaged contributions.

Should I choose pre-tax or Roth for my UCLA 403(b) and 457(b)?

For most UCLA Health attendings, pre-tax contributions to the 403(b) and 457(b) are more efficient than Roth at the current bracket. At $400,000+ income, the combined federal (35–37%) and California (11.3%) marginal rate often exceeds 46%. Pre-tax deferral saves tax at that rate today; you'll pay taxes on withdrawals in retirement, likely at a lower rate — especially if you retire to a state without income tax. The exception: if you plan to remain in California in retirement, or if Roth diversification is a strategic priority, a portion of Roth may make sense. We model this specifically for your situation.

Other LA physician employers

Not at UCLA Health?

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UCLA Health Physicians Have Three Retirement Buckets.
Most Use Only One.