The Best Financial Accounts for a Travel Physical Therapist: Where to Put Your Money

Travel physical therapy can be a great way to accelerate your financial goals. Between competitive weekly pay, opportunities to take time off between contracts, and the ability to keep expenses relatively low, travel PTs have a unique opportunity to build wealth early in their careers.

Here are five financial accounts that travel physical therapists should understand and prioritize.

Note: The ideal order depends on your employer benefits, tax situation, emergency savings, and financial goals.

1. 401(k)

A 401(k) is one of the most effective ways to invest for retirement, and travel PTs will have access to one through their staffing agency. The biggest advantages are tax benefits, the ability to invest consistently, and receiving matching contributions from your employer

Traditional vs. Roth 401(k)

Some plans offer a traditional 401(k), while others offer both traditional and Roth contributions. The main difference is when you pay taxes.

Traditional 401(k): Contributions generally reduce your current federal taxable income, and you pay ordinary income tax on withdrawals in retirement.

Roth 401(k): Contributions are made with after-tax money. Qualified withdrawals in retirement are tax-free, including investment growth.

Choosing between a traditional and Roth 401(k) largely comes down to whether you expect your tax rate to be higher now or in retirement. However, nobody can predict future tax rates with certainty, so contributing to both can provide greater tax flexibility in retirement.

This decision is especially important for travel PTs because their taxable hourly wages may be relatively low compared with their total weekly compensation. If your current taxable income and marginal tax rate are relatively low, Roth contributions may make sense because you pay taxes now in exchange for tax-free qualified withdrawals in retirement.

On the other hand, traditional contributions may be more beneficial if you want to reduce your taxable income today. This could be a good option if you're already contributing to a Roth IRA and want to diversify the tax treatment of your retirement savings.

Don't leave an employer match on the table

If your agency offers a 401(k) match, make sure you understand the requirements to receive it. Employer matching contributions are effectively additional compensation, making them a strong reason to prioritize the account.

Pay attention to the vesting schedule. Some employer contributions become yours immediately, while others require you to work for a specified period. Because travel PTs frequently change employers, you should understand whether you will keep the match if you leave before becoming fully vested. Whatever you contributed already, you obviously keep.

Waiting periods with travel agencies

One challenge with travel physical therapy is that some staffing agencies have a waiting period before you're eligible to participate in their 401(k) plan. Depending on the agency, you may need to wait a certain amount of time after starting your assignment before you can begin contributing.

This is where an IRA (discussed below) can be especially useful. Rather than waiting to start investing for retirement, you can open your own Roth or traditional IRA and begin contributing while you wait for your employer-sponsored plan to become available.

How much can you contribute?

For 2026, the employee contribution limit is $24,500 for most workers under age 50. That's approximately $2,042 per month if you spread contributions evenly throughout the year.

Maxing out a 401(k) is obviously a significant challenge, especially if you're paying down student loans and have other priorities. Start with a sustainable contribution rate and increase it as your finances allow. If your employer offers a match, prioritize contributing enough to receive the full match (usually 3-5%).

2. Health Savings Account (HSA)

If you have access to a Health Savings Account (HSA), it can be one of the most powerful tools available for long-term wealth building.

An HSA offers a unique triple tax advantage:

• Tax-deductible contributions: Contributions are generally deductible on your federal tax return or made through payroll on a pre-tax basis.

• Tax-free growth: You can invest your HSA balance, allowing it to grow without taxes on investment gains.

• Tax-free withdrawals: Withdrawals for qualified medical expenses are tax-free.

Why HSAs can be harder to find as a travel PT

Not many travel therapy agencies offers an HSA-eligible health insurance plan. These accounts generally require enrollment in a qualifying high-deductible health plan (HDHP), and your agency's available insurance options may limit your choices. We do have companies we have worked with that offer one if you are interested.

If you're comparing agency benefits, look beyond the weekly pay package. Consider the cost of premiums, deductible, out-of-pocket maximum, and whether an HSA-eligible plan makes sense for your healthcare needs.

How to use an HSA for long-term growth

If you can comfortably cover current medical expenses out of pocket, one strategy is to invest your HSA balance and allow it to grow for the future. Make sure you keep records of qualified medical expenses for reimbursement later.

An HSA should not come at the expense of having enough cash for emergencies or healthcare costs. If you're eligible and can afford the health plan, an HSA is worth serious consideration. Just make sure the insurance plan itself is a good fit before choosing it for the tax benefits alone.

3. High-Yield Savings Account (HYSA)

A high-yield savings account is especially important for travel PTs because your income and expenses will likely change when you take time off between contracts. Unlike retirement accounts or stock market investments, an HYSA gives you a place to keep cash accessible while earning interest.

Build an emergency fund

A common guideline is to maintain three to six months of essential living expenses in an emergency fund. For travel PTs, you may want to hold more depending on how many weeks you work a year, your household expenses, and any vacation plans you have. Although the risk is relatively low, contracts can end early, or start dates can be delayed, making it important to have cash readily available to cover your expenses between assignments.

Having cash available helps you avoid selling investments at an inconvenient time or relying on credit cards to cover expenses.

Save for planned time off and short-term goals

If you routinely take several weeks off between assignments, consider setting aside additional money specifically for those periods. This allows you to enjoy your time off without disrupting your long-term investment plans.

An HYSA is also useful for goals such as:

• Saving for a house down payment

• Buying a car

• Paying for a wedding

• Planning a major trip

• Covering any expenses you expect within the next few months to several years

Money you expect to need soon generally shouldn't be exposed to stock market risk and volatility. A savings account provides more predictable access to your cash.

Where can you open an HYSA?

One option to consider is Marcus by Goldman Sachs, which we personally use as traveling physical therapists.

At the time of writing, Marcus advertises a 3.50% APY, with a promotional 1.00 percentage-point APY boost for three months when an eligible new customer opens an account through a qualifying referral. That brings the rate to 4.50% APY during the promotional period. Rates can change, so verify the current offer before opening an account.

You can check out the offer through our Marcus referral link.

4. Individual Retirement Account (IRA)

An Individual Retirement Account, or IRA, is another valuable tool for retirement savings. It can be especially useful if you want more investment choices than your employer-sponsored 401(k) provides or you simply have more money to invest.

There are two main types: traditional and Roth.

Traditional IRA: Contributions may be tax-deductible, depending on your income and whether you or your spouse have access to a workplace retirement plan. Investments grow tax-deferred, and withdrawals are generally taxable.

Roth IRA: Contributions are made with after-tax money. Qualified withdrawals in retirement are tax-free, including investment gains. Eligibility to contribute directly depends on your income and filing status.

How to choose between a traditional and Roth IRA

The same general principle applies here as with your 401(k): consider whether the tax deduction today or tax-free withdrawals in retirement are likely to benefit you more.

You can also use your IRA to balance the tax treatment of your workplace retirement account. For example, someone making traditional 401(k) contributions might choose a Roth IRA, assuming they are eligible, to build a pool of tax-free retirement assets. Alternatively, someone making Roth 401(k) contributions might consider a traditional IRA if the contribution is deductible and the deduction is worthwhile for their tax situation.

How much can you contribute?

For 2026, the IRA contribution limit is $7,500 for those under age 50, or $625 per month if you contribute evenly throughout the year. That can make an IRA a more approachable goal than maxing out a 401(k).

One common approach is to receive the full employer 401(k) match first, then fund an IRA, and subsequently return to increasing your 401(k) contributions.

5. Taxable Brokerage Account

A taxable brokerage account is where you can invest money outside of retirement-specific accounts.

Unlike a 401(k) or IRA, a standard taxable brokerage account has no annual contribution limit and generally doesn't impose an early-withdrawal penalty simply because you sell investments or withdraw your money. That flexibility will be valuable if you want to build wealth while keeping your options open before retirement age.

Why consider a brokerage account?

A brokerage account can help you invest for long-term goals that don't fit neatly into a retirement account, such as financial independence, a future career change, or having the flexibility to work less later in life. You can buy and sell a wide range of investments, including stocks, index funds, and exchange-traded funds (ETFs). However, the flexibility comes with a trade-off: there are no special tax benefits on contributions, and dividends, interest, and realized capital gains may be taxable.

What if you've maxed out your other accounts?

If you've built a sufficient emergency fund, taken advantage of your employer's 401(k) match, and made contributions to your HSA and IRA where appropriate, you may have additional money available to invest. This is where a taxable brokerage account becomes particularly useful.

For travel PTs who earn more than they need to cover their expenses, investing extra money in a brokerage account can help accelerate long-term wealth building. However, you don't have to max out every retirement account before opening a brokerage account, either. If you've met your essential savings goals and want to invest money for long-term growth, a brokerage account can be a reasonable choice.

Where can you open a brokerage account?

Charles Schwab, Fidelity, and Vanguard are three of the biggest names in investing and are all great options for opening a brokerage account. Robinhood is another option to consider if you prefer a more hands-on approach to investing through a user-friendly platform. You can use our Robinhood referral link to get a free stock.

So where should your money go first?

There isn't one perfect order for everyone. Your financial situation, employer benefits, plans for time off, and short- and long-term goals all matter. However, the following is a useful starting framework for many travel PTs:

1. Build an emergency fund. Keep enough cash available to cover essential expenses and potential gaps between contracts.

2. Capture your full employer 401(k) match. Take advantage of matching contributions when available, while understanding the vesting schedule.

3. Consider an HSA. If you're eligible for a qualifying plan and it makes sense for your healthcare needs, take advantage of its triple tax benefit.

4. Fund an IRA. Choose traditional or Roth based on your tax situation and retirement goals. An IRA can also help you continue investing if you face a waiting period before your agency's 401(k) becomes available.

5. Increase your 401(k) contributions. Work toward the annual limit as your income and budget allow.

6. Invest in a taxable brokerage account. Use this for additional long-term investing and goals that require greater flexibility.

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