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

Not directly. TIAA accounts cannot be managed by an outside adviser while you're actively employed. Qubera provides a detailed investment blueprint — specific TIAA fund recommendations across the 403(b) and 457(b), after-tax contribution setup — that you implement yourself. After separation, we manage any TIAA balances rolled to an outside IRA and coordinate the distribution schedule planning for the non-governmental 457(b).

What is the biggest financial planning mistake USC Keck physicians make?

The most consequential mistake is making the 457(b) distribution election without planning for the tax impact of separation-year income. A physician who separates in June after earning $250,000 in W-2 income and receives a $400,000 457(b) lump sum in the same year will pay 37% federal + 11.3% California on a large portion of that distribution — a total tax bill that could exceed $175,000 on the lump sum alone. The right distribution schedule depends on your expected income in the separation year and the years immediately following.

USC Keck Physician Financial Planning | 457(b) Distribution Election & TIAA 403(b)

Q: What happens to my USC 457(b) if I leave USC Keck?

The USC 457(b) is a non-governmental plan, which means it cannot be rolled to an IRA when you leave USC. It must be distributed on the schedule you elected at enrollment — a lump sum or installments over 5, 10, or 15 years — and distributions are subject to ordinary income tax. Unlike UCLA's governmental 457(b), the USC 457(b) also remains a general asset of USC, meaning it is technically subject to USC's creditors in insolvency.

Q: How does the USC 457(b) distribution election work?

At USC Keck, you must elect how you want your 457(b) distributed before you begin participating. You can typically choose a lump sum within 60–90 days of separation, or installments over 5, 10, or 15 years starting at separation or a deferred date (no later than age 70½ in most cases). The election is difficult or impossible to change once made. For physicians who may have USC income in the same year they separate, a lump sum distribution could push taxable income above $700,000, compressing into the 37% bracket.

Q: Does USC Keck have a Mega Backdoor Roth option?

USC Keck offers after-tax contributions to the 403(b) that can potentially be converted to Roth in-plan, depending on plan document provisions at the time. This provides additional Roth conversion space beyond the $24,500 elective deferral limit, up to the IRC 415(c) ceiling of $72,000 for 2026 minus employer contributions. Whether this conversion is available is plan-specific and can change — confirm with USC HR before setting up.

The most important financial decision USC Keck physicians make

When you enroll in the USC 457(b), you must elect your distribution schedule — typically a lump sum, or installments over 5, 10, or 15 years. This election governs when and how your 457(b) is paid out when you separate from USC. It is very difficult to change after enrollment. For many physicians, getting this election wrong creates a six-figure tax problem at separation.

2026 contribution limits

What USC Keck physicians can save in 2026

USC Keck offers two primary retirement savings vehicles: the TIAA 403(b) and the non-governmental 457(b). Each has a separate contribution limit.

$24,500

403(b) elective deferral (TIAA)

$24,500

457(b) deferral — separate limit

$72,000

IRC 415(c) total annual additions ceiling

≠ IRA

457(b) does NOT roll to IRA at separation

TIAA 403(b)

403(b) — $24,500, standard structure

USC Keck's 403(b) is held at TIAA and follows the standard 403(b) structure. Employee elective deferral is $24,500 in 2026; catch-up is $8,000 at 50+ and $11,250 at 60–63. USC makes employer contributions that count toward the IRC 415(c) limit — confirm your specific amount with HR. Pre-tax or Roth options are available within the TIAA platform.

TIAA's investment lineup includes both TIAA Traditional (fixed annuity with guaranteed rate) and variable account options. TIAA Traditional has surrender rules — withdrawing from it during employment or within 10 years of separation may be restricted to 10 annual installments. Understand these restrictions before allocating a large portion of your 403(b) there.

Non-Governmental 457(b)

457(b) — $24,500, but NOT like UCLA's

USC's 457(b) is a non-governmental deferred compensation plan. This means three important things. First, it cannot be rolled to an IRA when you leave USC — distributions are taxable ordinary income in the year paid, on USC's schedule. Second, the money remains a general asset of the university until distributed — it is technically subject to USC's creditors. Third, you must elect the distribution schedule at enrollment, and changing it later is restricted by IRS 409A rules.

Contrast with UCLA's 457(b): governmental plans roll to IRAs, have no creditor risk from the employer, and can be distributed at any time after separation without the 10% penalty. The USC 457(b) offers the same upfront tax deferral, but with fundamentally different distribution mechanics.

Separation-year tax trap: If you separate from USC in a year where you've already earned $250,000+, and your 457(b) lump sum is $300,000–$500,000, the combined income in that tax year can push a large portion into the 37% federal bracket + 11.3% California. An installment election over 5–10 years spreads the income and can reduce total tax paid by $50,000–$120,000.

After-Tax / Mega Backdoor

403(b) after-tax contributions — check plan availability

USC Keck's 403(b) plan document may allow after-tax contributions beyond the $24,500 elective deferral, up to the IRC 415(c) ceiling of $72,000 (minus employer contributions). If available, these after-tax contributions can be converted to Roth in-plan. Plan provisions can change year to year — confirm with USC HR or the Summary Plan Description before modeling this into your contribution strategy.

For USC Keck physicians who are already maxing the 403(b) and 457(b), this after-tax bucket (if available) can add $20,000–$30,000 in Roth conversion space annually.

What Qubera does

457(b) election modeling · Blueprint while employed · Post-separation rollover

For USC Keck physicians who are new to the plan or haven't yet elected a distribution schedule, Qubera models the expected tax impact of each election scenario — lump sum vs. installments — based on your projected income in separation year and the years following. This single analysis often prevents a six-figure tax mistake.

While employed, we provide a written investment blueprint for your TIAA platform, including fund allocation across the 403(b) and 457(b). After separation, we coordinate TIAA 403(b) rollovers to Schwab, and we plan around your 457(b) distribution timing to minimize tax year-by-year.

Common mistakes at USC Keck

What we fix in the first engagement

Wrong 457(b) distribution election

Most USC Keck physicians elect a lump-sum distribution without modeling the tax impact. If you separate in a year with significant USC income — especially in the middle of a calendar year — a lump-sum 457(b) distribution on top of your salary creates a compressed income year. A 5- or 10-year installment schedule often saves $50,000–$120,000 in lifetime taxes. This decision is made once, at enrollment.

Allocating too much to TIAA Traditional

TIAA Traditional's guaranteed rate attracts physicians who want stability. But withdrawing from TIAA Traditional during employment or within 10 years of separation is typically restricted to 10 equal annual installments. Physicians who plan to leave USC within 5–10 years and want full investment flexibility should understand the liquidity constraints before concentrating savings there.

Ignoring after-tax contributions in the 403(b)

USC Keck physicians who max the 403(b) ($24,500) and 457(b) ($24,500) often stop there — unaware that the plan may allow additional after-tax contributions to the 403(b) up to the $72,000 ceiling. If your employer contribution is $5,000, you potentially have $42,500 of after-tax capacity. Whether Roth conversion is available in-plan is plan-specific — confirm before assuming it's available.

USC Keck specific questions

What USC Keck physicians ask before working with us

What happens to my USC 457(b) if I leave USC Keck?

The USC 457(b) is a non-governmental plan. It cannot be rolled to an IRA when you separate from USC. It must be distributed according to the schedule you elected at enrollment — lump sum within 60–90 days of separation, or installments over 5, 10, or 15 years starting at or after separation. Distributions are taxable ordinary income in the year paid. The money also remains a general asset of USC until distributed, which is different from a governmental plan held in a trust.

How does the USC 457(b) distribution election work, and can I change it?

At enrollment, you elect how your 457(b) will be distributed when you eventually separate from USC. Options typically include a lump sum or installments over 5, 10, or 15 years beginning at separation or a deferred date. IRS Section 409A rules govern when and how this election can be changed. Most plan documents require any change to be made at least 12 months before the originally scheduled distribution date, and the new distribution must be deferred an additional 5 years from the original date. In practice, for most physicians this means the election is effectively permanent once separation is imminent.

Is the USC 457(b) worth contributing to despite the distribution restrictions?

For most USC Keck physicians, yes — with the right distribution election. You defer $24,500 at a combined 46%+ marginal rate (37% federal + 11.3% California). Even if you pay 37% federal on the distribution in retirement, you come out ahead on the deferred tax compounding alone. The risk is separation-year income compression: if the same year you receive your 457(b) lump sum you also have significant earned income, you may pay the same or higher marginal rate on distributions as you deferred. An installment election spread over 5–10 years typically avoids this problem.

Does USC Keck have a Mega Backdoor Roth option?

USC Keck's 403(b) may allow after-tax contributions up to the IRC 415(c) ceiling of $72,000 for 2026, which can then be converted to Roth in-plan. This depends on the current plan document. Available space is the $72,000 ceiling minus your $24,500 elective deferral and USC's employer contribution. For most USC Keck attendings, this creates $20,000–$30,000 in additional Roth conversion capacity. Confirm the current plan document with USC HR before modeling this into your strategy — plan provisions can change.

How does USC Keck compare to UCLA Health for physician retirement savings?

The key difference is the 457(b) structure. UCLA Health's 457(b) is governmental — it rolls to an IRA with no 10% penalty and is held in a trust protected from UCLA's creditors. USC Keck's 457(b) is non-governmental — it cannot roll to an IRA, remains a USC asset, and must be distributed on your elected schedule. UCLA physicians also have the UC DCP after-tax bucket, which creates a significantly larger Mega Backdoor Roth capacity (typically $42,000–$47,000/year) compared to USC's after-tax 403(b) provision (which may or may not include in-plan Roth conversion). Overall contribution capacity is roughly comparable, but the distribution mechanics and Roth capacity at UCLA are more favorable.

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Working at USC Keck? Let's review your 457(b) election.

If you haven't made your 457(b) distribution election yet — or if you made it without modeling the tax impact — let's talk. Bring your TIAA account statements to a complimentary 30-minute call.

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USC Keck's 457(b) Has a Decision You Can't Take Back.
Most Physicians Don't Know Until It's Too Late.