A catheter assembly including a catheter carried by a catheter adapter, a needle having a sharp distal tip and disposed in the catheter such that in a first needle position, the needle extending beyond the catheter, a needle hub fixed adjacent to a proximal end of the needle, a clip disposed in the catheter adapter and cooperating with the needle, and a barrel assembly including an inner diameter, wherein when the needle is in a second needle position, the clip encloses the distal tip of the needle, and when the needle moves to a third needle position, the clip and the needle is disposed in the inner diameter of the barrel assembly.