Question 1

How much should I contribute to my 401(k)?

Accepted Answer

The first priority is contributing enough to capture any employer match — this is an immediate return that no market investment can reliably match. Beyond the match, general guidance suggests saving 15% of gross income toward retirement across all accounts, including any employer contribution. If you are starting later or have a large gap to cover, higher rates are warranted. The 2026 IRS 401(k) contribution limit is $23,500 for employees (with an additional $7,500 catch-up for those 50 and older). The 401(k) calculator lets you model different contribution rates and return assumptions to project your balance at a target retirement age.

Question 2

What is the difference between a traditional IRA and a Roth IRA?

Accepted Answer

A traditional IRA allows pre-tax contributions that reduce your taxable income today; withdrawals in retirement are taxed as ordinary income. A Roth IRA takes after-tax contributions — no upfront deduction — but qualified withdrawals in retirement are completely tax-free, including all accumulated growth. The better choice depends on whether your current marginal rate is higher or lower than your expected rate in retirement. If you expect to be in a lower bracket in retirement (common for high earners early in their career), the traditional IRA's deduction today may be more valuable. If you expect a higher bracket in retirement, or if tax rates rise generally, the Roth's tax-free withdrawals become more valuable.

Question 3

What are required minimum distributions (RMDs) and why do they matter?

Accepted Answer

The IRS requires account holders with traditional IRAs, 401(k)s, and most other pre-tax retirement accounts to begin taking minimum distributions at age 73 (as of the SECURE 2.0 Act). The RMD amount for each year is calculated by dividing the account balance as of December 31 of the prior year by a life expectancy factor from the IRS Uniform Lifetime Table. Failing to take RMDs results in a 25% penalty on the amount that should have been withdrawn. RMDs matter for tax planning because large balances generate large RMDs, which count as ordinary income — potentially pushing retirees into higher brackets and triggering income-related Medicare premium surcharges (IRMAA).

Question 4

What is a safe withdrawal rate in retirement?

Accepted Answer

The 4% rule — from the Trinity Study (1994) — suggests that a retiree with a balanced stock-and-bond portfolio can withdraw 4% of the initial balance annually, adjusted for inflation each year, with a high historical probability of the portfolio lasting 30 years. More recent research suggests that lower initial withdrawal rates (3% to 3.5%) may be prudent given current valuations and lower expected bond returns. The safe withdrawal rate is not a fixed number; it depends on your asset allocation, expected retirement duration, flexibility to reduce spending in downturns, and other income sources like Social Security. The retirement withdrawal calculator models these variables directly.

Question 5

When should I claim Social Security benefits?

Accepted Answer

You can claim Social Security as early as 62 or as late as 70. Claiming early permanently reduces your monthly benefit relative to your full retirement age (FRA) amount; waiting past your FRA increases it by 8% per year up to age 70, at which point delayed credits stop. The optimal age depends primarily on your health and life expectancy: someone with a shorter expected lifespan breaks even faster by claiming early; someone in good health expecting to live into their mid-80s or longer typically maximizes lifetime benefits by waiting. Spousal dynamics also matter — in a married couple, the higher earner delaying benefits maximizes the survivor benefit for a longer-lived spouse.

Question 6

Can I withdraw from my 401(k) or IRA before retirement without penalty?

Accepted Answer

Withdrawing from a traditional 401(k) or IRA before age 59½ generally triggers a 10% early withdrawal penalty on top of ordinary income tax on the amount withdrawn. There are exceptions: substantially equal periodic payments (Rule 72(t)), first-time home purchase (IRA only, up to $10,000 lifetime), qualified higher education expenses (IRA only), total and permanent disability, and certain medical expenses exceeding a threshold. Roth IRA contributions (not earnings) can be withdrawn at any time without tax or penalty since contributions were already taxed. Early withdrawals are expensive and should be a last resort — the loss of tax-advantaged compounding compounds the cost over time.

Question 7

How does an employer 401(k) match work?

Accepted Answer

An employer match is a contribution the employer makes to your 401(k) based on your own contribution, up to a specified limit. A common structure is 100% match on the first 3% of salary, or 50% match on the first 6% of salary. In the first example, contributing 3% of a $70,000 salary ($2,100) earns a $2,100 employer contribution — effectively doubling your contribution at no additional cost. Vesting schedules determine when you legally own the employer's contributions: some employers use immediate vesting, others require two to six years of service. Contributing at least enough to capture the full match is universally recommended because it represents a guaranteed 50% to 100% return on the matched portion.

Calculator	Best for / use when	Link
401(k) Calculator	Projecting how your workplace retirement account grows over time given your contribution rate, employer match, return assumption, and years until retirement	Open →
Traditional vs. Roth IRA Calculator	Deciding whether to contribute to a traditional (pre-tax) or Roth (after-tax) account based on your current versus expected retirement tax rate	Open →
RMD Calculator	Computing the required minimum distribution you must take from traditional IRAs and 401(k)s each year starting at age 73, per IRS Uniform Lifetime Table rules	Open →
Retirement Withdrawal Calculator	Estimating how long a retirement portfolio will last — or what monthly withdrawal it can sustain — given your balance, return assumption, and expected retirement duration	Open →
Social Security Calculator	Estimating your monthly Social Security benefit and modeling the impact of claiming at different ages (62 through 70) on your total lifetime benefit	Open →

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