Retirement Planning for Mercy Hospital Joplin Employees: Turning a Healthcare Career Into Lasting Income

Here's what most healthcare workers never hear from HR: the years between your last paycheck and age 73 — when required minimum distributions begin — are often your single best opportunity for tax planning.

Picture a 62-year-old Mercy Joplin registered nurse who retires in 2026. Her income drops from $75,000 a year to near zero. She hasn't claimed Social Security yet, and her 403(b) sits at $480,000. In tax terms, she's suddenly in a much lower bracket than she's been in for 30 years. That gap may last 5 to 10 years.

That window could be used for Roth conversions — moving money from her pre-tax 403(b) (or a rolled-over IRA) into a Roth IRA and paying taxes now at a lower rate, in exchange for tax-free withdrawals later, while employees 50 and older may still boost savings through catch-up contributions before retiring. A thoughtful Roth conversion strategy during these gap years may reduce the size of required minimum distributions at age 73 and potentially reduce total lifetime taxes — but actual results depend on income, filing status, and tax rates at conversion time.

The window is also the right time to evaluate whether to delay Social Security to age 70. Every year you delay past full retirement age (67 for those born in 1960 and later), your Social Security benefit grows by approximately 8%. For a healthy 62-year-old, that math often favors waiting — but only if you have assets to live on in the interim and have maximized contributions before leaving work to capture the full employer match when available.

Roth conversions are taxable events. The decision to convert should be modeled with a tax professional who understands your full income picture, including health insurance costs before Medicare eligibility. This is not a one-size-fits-all move.

Missouri is not a zero-tax retirement state, and that matters for Joplin-area retirees. Missouri taxes 403(b) and IRA withdrawals as ordinary state income. Missouri's top individual income tax rate in 2026 is 4.8% — the result of several years of rate reductions passed by the state legislature. On a $70,000 annual 403(b) distribution, that's roughly $3,360 in Missouri state income taxes, on top of the federal liability.

Social Security benefits, however, are not taxed by Missouri at the state level. That's a meaningful benefit compared to several other states.

Missouri provides a partial public pension exemption for qualifying distributions from government plans like MOSERS (Missouri State Employees' Retirement System) and PSRS (Public School Retirement System). Mercy Joplin is a private employer, so its 403(b) distributions do not qualify for those government pension exemptions. That means withdrawals will be taxed as ordinary Missouri income.

The practical takeaway: 403(b) withdrawals from Mercy's plan will likely be fully taxable at both the federal and state level in the year taken. That makes timing and sequencing of withdrawals more important, not less. Lower-income years early in retirement may be the best years to take larger withdrawals or Roth conversions at lower marginal rates.

The goal of retirement income planning isn't to protect the balance — it's to create a reliable income stream you can live on without running out of money. Here's how healthcare retirees in Joplin typically approach this.

Step 1: Map your income gap. Start with your fixed monthly expenses — housing, utilities, food, healthcare, transportation. Then subtract any guaranteed income you'll receive: Social Security (when you claim it), any pension, a spouse's income. The difference is your monthly income gap — the amount your 403(b) must cover. If you're still working, you can revisit and change your contribution percentage at any time as part of your income planning.

Step 2: Decide on a withdrawal order. Most retirees benefit from a tax-aware sequence: pull from taxable accounts first (lowest tax impact), then from tax-deferred accounts (like your 403(b) or IRA), and preserve Roth accounts for last since those withdrawals are tax-free in retirement. The right sequence depends on your specific account balances, expected income, and tax situation. Review your retirement account allocation periodically so it still aligns with your goals and planned withdrawal timeline.

Step 3: Coordinate Social Security timing. Claiming at 62 locks in a permanently reduced benefit. Waiting until 67 or 70 increases your monthly Social Security income and reduces the pressure on your 403(b). For many Mercy Joplin nurses and staff approaching age 62 with adequate savings, delaying Social Security while drawing carefully from the 403(b) can result in a higher floor of guaranteed income for the rest of your life.

Step 4: Plan for healthcare costs. This is where healthcare workers sometimes underestimate the future. Even with a career in medicine, your personal health insurance costs between retirement and Medicare eligibility at 65 can run $800 to $1,500 per month or more depending on your plan and health status. ACA marketplace plans are an option, and income management in this window can affect your marketplace subsidy eligibility. That's another reason to plan 403(b) withdrawals carefully around your income.

Step 5: Address required minimum distributions before they arrive. At age 73, the IRS requires you to begin taking minimum distributions from your 403(b) or IRA regardless of whether you need the money. For large balances, RMDs can push you into higher tax brackets and increase Medicare IRMAA surcharges. Planning ahead — through Roth conversions or structured early withdrawals — may help reduce the RMD impact before it hits.

Leaving everything in the 403(b) and doing nothing. This sounds safe but it means you haven't planned. The balance grows, RMDs arrive at 73, and suddenly you have a forced tax event in a year when you may have other income. Planning your drawdown in advance gives you control.

Rolling over without checking the fine print. Some older 403(b) contracts include surrender periods, fixed annuity provisions, or employer contribution vesting schedules that affect when and how you can move funds. For example, service thresholds and benefit enrollment completion can affect access to employer money: some systems require 1,000 hours for matching contributions or full vesting after three years, and employees are fully vested in Children's Mercy contributions after three years. Before you sign any rollover paperwork, confirm whether a direct IRA rollover is the right move and what you may be giving up, and verify Mercy-specific terms before moving funds.

Claiming Social Security too early because it feels like "free money." Social Security is your money — you earned it. But claiming at 62 reduces your monthly benefit permanently, often by 25% to 30% compared to waiting until full retirement age. For a healthy 62-year-old with savings to bridge the gap, that reduction can cost significant lifetime income. Run the break-even math with a financial professional.

Ignoring the spouse. If you're married, survivor benefits matter. A lower Social Security benefit means your surviving spouse — and the loved ones who depend on that income — receives less. Some pension elections can also reduce or eliminate survivor benefits. These decisions are made once and can rarely be undone.

If you're 59 to 67 and working at Mercy Hospital Joplin, here's the short list of actions that matter right now:

1. Pull your current 403(b) balance and contribution history. Also check whether Mercy matches 401(k) contributions for eligible employees, and confirm any employer match details plus eligibility rules tied to your employment status, including whether you regularly work at least 32 hours per pay period if you're full time. Know your number.

2. Get a Social Security statement. Create an account at ssa.gov and review your projected benefit at 62, 67, and 70.

3. Estimate your expenses in retirement. Don't guess — actually list them.

4. Identify your healthcare bridge plan. What covers you between your last Mercy paycheck and Medicare at 65?

5. If you have federal student loans, verify whether Public Service Loan Forgiveness applies to your service at Mercy. For deadlines that can change by October, visit your benefits resources to learn what Mercy offers.

6. Talk to a fiduciary financial advisor who serves the Joplin region and understands the Missouri tax picture. Not a product salesperson — an advisor who is legally required to act in your interest.

Revolutionary Wealth is a fiduciary advisory firm serving the four-states region, including Joplin and the surrounding area. We help healthcare professionals who are approaching retirement — nurses, hospital administrators, allied health staff — build retirement income plans that coordinate their 403(b) accounts, Social Security timing, tax strategy, and healthcare cost bridge.

Our process starts with your real numbers: your 403(b) balance, your estimated expenses, your Social Security statement, and your tax picture. We build a year-by-year income plan that shows you which accounts to draw from and when, how Roth conversions may fit into your lower-income years, and what your estimated tax burden looks like under different scenarios.

We don't sell products. We plan. The first conversation is always free.

If you're a Mercy Joplin employee within 10 years of retirement and you haven't sat down with a fiduciary advisor yet, now is the right time — not two years before you sign retirement papers.

This blog contains general information that may not be suitable for everyone. The information contained herein should not be construed as personalized investment advice. There is no guarantee that the views and opinions expressed in this blog will come to pass. Investing in the stock market involves gains and losses and may not be suitable for all investors. Information presented herein is subject to change without notice and should not be considered as a solicitation to buy or sell any security. Revolutionary Wealth LLC does not offer legal or tax advice. Please consult the appropriate professional regarding your individual circumstance. Past performance is no guarantee of future results.

Mutual Funds are sold by prospectus. Please consider the investment objectives, risks, charges, and expenses carefully before investing in Mutual Funds. The prospectus, which contains this and other information about the investment company, can be obtained directly from the Fund Company or your financial professional. Be sure to read the prospectus carefully before deciding whether to invest. An investment in the Fund involves risk, including possible loss of principal.

Rebalancing/Reallocating can entail transaction costs and tax consequences that should be considered when determining a rebalancing/reallocation strategy.

A REIT is a security that sells like a stock on the major exchanges and invests in real estate directly, either through properties or mortgages. REITs receive special tax considerations and typically offer investors high yields, as well as a highly liquid method of investing in real estate. There are risks associated with these types of investments and include but are not limited to the following: Typically no secondary market exists for the security listed above. Potential difficulty discerning between routine interest payments and principal repayment. Redemption price of a REIT may be worth more or less than the original price paid. Value of the shares in the trust will fluctuate with the portfolio of underlying real estate. Involves risks such as refinancing in the real estate industry, interest rates, availability of mortgage funds, operating expenses, cost of insurance, lease terminations, potential economic and regulatory changes. This is neither an offer to sell nor a solicitation or an offer to buy the securities described herein. The offering is made only by the Prospectus.

Diversification does not guarantee a profit or protect against a loss in a declining market. It is a method used to help manage investment risk.

Converting an employer plan account or Traditional IRA to a Roth IRA is a taxable event. Increased taxable income from the Roth IRA conversion may have several consequences including but not limited to, a need for additional tax withholding or estimated tax payments, the loss of certain tax deductions and credits, and higher taxes on Social Security benefits and higher Medicare premiums. Be sure to consult with a qualified tax advisor before making any decisions regarding your IRA.

Indexed annuities are insurance contracts that, depending on the contract, may offer a guaranteed annual interest rate and some participation growth, if any, of a stock market index. Such contracts have substantial variation in terms, costs of guarantees and features and may cap participation or returns in significant ways. Any guarantees offered are backed by the financial strength of the insurance company. Surrender charges apply if not held to the end of the term. Withdrawals are taxed as ordinary income and, if taken prior to 59 ½, a 10% federal tax penalty. Investors are cautioned to carefully review an indexed annuity for its features, costs, risks, and how the variables are calculated.

Not associated with or endorsed by the Social Security Administration, Medicare or any other government agency. Maximizing your Social Security Benefits assumes foreknowledge of your date of death. If as an example you wait to claim a higher monthly benefit amount but predecease your average life expectancy, it would have been better to claim your benefits at an earlier age with reduced benefits.

Please consider the investment objectives, risks, charges, and expenses carefully before investing in Variable Annuities. The prospectus, which contains this and other information about the variable annuity contract and the underlying investment options, can be obtained from the insurance company or your financial professional. Be sure to read the prospectus carefully before deciding whether to invest.

The investment return and principal value of the variable annuity investment options are not guaranteed. Variable annuity sub-accounts fluctuate with changes in market conditions. The principal may be worth more or less than the original amount invested when the annuity is surrendered.

QLACs cannot be purchased with Roth or Inherited IRA dollars; value of such IRAs cannot be included in determining 25% premium limit. If Funding Source is Traditional IRA, 25% limit is calculated by combining the total value of all Traditional IRAs as of December 31st of the previous year. If Funding source is Employer sponsored qualified plan (401k, 403b and governmental 457b), 25% limit is calculated on an individual plan basis based on the plan's account value on the previous day's market close. If you previously purchased a QLAC, the calculation of your 25% limit is more complicated. Please contact an attorney or tax professional for additional details. Any guarantees of the annuity are backed by the financial strength of the underlying insurance company.

The projections or other information generated by Monte Carlo analysis tools regarding the likelihood of various investment outcomes are hypothetical in nature, are based on assumptions that you provide which could prove to be inaccurate over time, do not reflect actual investment results, and are not guarantees of future results. Results may vary with each use and over time.