How much do I need in my 401(k) to retire?
Most rule-of-thumb guidance is 10–12 times your final annual salary by age 65. For a $100,000-earner, that's $1.0M–$1.2M. The 4% rule says a $1M portfolio supports about $40,000/year in inflation-adjusted withdrawals. Add Social Security for a typical mid-career earner ($30,000–$45,000/year at FRA) and the $1M–$1.5M target replaces 70–80% of pre-retirement income.
Should I do Roth or traditional 401(k)?
Traditional if you're in a high bracket now and expect a lower bracket in retirement. Roth if you expect higher rates later, want tax diversification, or want to leave tax-free money to heirs. Most planners recommend a mix. at least some Roth so you have tax-free withdrawal flexibility in retirement.
What is the catch-up contribution for 2026?
Workers age 50+ can contribute an extra $7,500 above the base limit, totaling $31,000. SECURE 2.0 added a "super catch-up" for ages 60–63 of $11,250 above the base, totaling $34,750. After age 63, you revert to the standard 50+ catch-up.
Can I contribute to both a 401(k) and an IRA?
Yes, the limits are separate. The 2026 IRA contribution limit is $7,000 ($8,000 if 50+). However, IRA deduction limits phase out at higher incomes when you have a 401(k). fully phased out at $103,000 (single) or $172,000 (MFJ) MAGI. Consider a backdoor Roth if your income exceeds the deduction limit.
When can I withdraw from my 401(k) without penalty?
Age 59½ for full penalty-free access. The "Rule of 55" allows penalty-free 401(k) withdrawals if you separate from your employer in or after the year you turn 55. but only from that employer's 401(k), and you can't roll into an IRA first. Public-safety workers (police, firefighters) get age 50.