NBA Retirement Benefits Plan Advisors Need To Know
Playing in the NBA is a dream come true — but what happens when your time on the court comes to an end?
At Caldwell Wealth Management, we help athletes prepare for life after basketball by maximizing the benefits available to them. The NBA, in partnership with the NBPA (National Basketball Players Association), offers one of the most comprehensive retirement and benefits packages in professional sports.
Here’s a complete breakdown of what’s available and how to make the most of it.
Understanding Eligibility: What Are “Years of Service”?
Before diving into the benefits, it’s important to know if you qualify.
In the NBA, benefits are earned based on "Years of Service". A "Year of Service" is credited when you’re listed on an NBA Active or Inactive roster for at least one day during the regular season.
To access most retirement benefits, you must earn a minimum of three (3) Years of Service.
Key NBA Retirement Benefits
The 2023 Collective Bargaining Agreement (CBA), effective through the 2029–30 season, expanded player benefits. If you’ve earned at least 3 Years of Service, here are the benefits available to you:
NBA Pension Plan
NBA 401(k) Plan
NBA Health & Wellness Benefits
NBA Post-Career Income Plan
Let’s take a closer look at each one.
1. NBA Pension Plan
The NBA Pension Plan provides guaranteed retirement income once your playing days are over.
Key Points:
Minimum requirement: 3 Years of Service
You can start collecting: As early as age 45 (full benefits at age 62)
Annual benefit at age 62:
3 Years of Service: $56,988/year
10+ Years of Service: Up to $215,000/year
Your payout depends on Years of Service, age when you start, and your average NBA salary.
Tip: Timing your pension start date strategically can increase your long-term income. Work with a financial advisor who specializes in athlete wealth to find your ideal strategy.
2. NBA 401(k) Plan
The NBA 401(k) Plan is one of the best in professional sports. It includes:
A) Salary Deferral Contributions
You can defer part of your salary into your 401(k), automatically saving for retirement without lifting a finger.
2024 maximum pre-tax contribution: $23,000
Reduces your taxable income — potential tax savings of $8,500+ if you're in the top tax bracket
B) Matching Contributions
The NBA offers a 140% match on your 401(k) contributions.
Example:
You contribute: $23,000
NBA contributes: $32,200
Total annual savings: $55,200
Important: The NBPA must request the match in writing before the season starts for you to receive it.
C) After-Tax Contributions
In addition to pre-tax contributions, you can also contribute on an after-tax basis to boost your savings even more.
Bottom Line: The NBA 401(k) Plan is a slam dunk for long-term wealth — make sure you’re maximizing every component.
3. NBA Health & Wellness Benefits
The NBA is a physically demanding league — and the health toll can last long after retirement. That’s why the league offers strong post-career health support.
A) Health Reimbursement Arrangement (HRA)
Available to players since the 2000–01 season
Not traditional insurance — it’s employer-funded to reimburse eligible medical expenses
Unused funds roll over year-to-year
This gives you peace of mind, knowing medical expenses can be covered without dipping into your own pocket.
B) Insurance & Retiree Medical Plan
Even after retirement, you can maintain medical coverage and adjust your plan based on your personal needs.
C) Tuition Reimbursement
If you’re looking to transition to a new career or finish your education:
Must have at least 3 Years of Service
Eligible for up to $62,500 per calendar year
This benefit supports personal growth and career reinvention after basketball.
4. NBA Post-Career Income Plan
This lesser-known benefit provides supplemental income after you retire.
Funded by both teams and players
Used to purchase Post-Career Annuities — regular payments after retirement
Contributions come from a portion of Basketball Related Income (BRI)
Tip: The Post-Career Income Plan can be complex. We recommend speaking with your team’s HR department or a financial advisor to understand how this fits into your retirement strategy.
Start Planning Now
Retirement may seem far off, but the earlier you plan, the more you can maximize your benefits. At Caldwell Wealth Management, we specialize in helping professional athletes navigate retirement and long-term financial planning.
Need help building your retirement game plan?
Let’s talk — our team is ready to help you make every benefit count.
