Retirement
401k, IRA, Roth IRA, and planning for a financially secure retirement.
Retirement planning in the U.S. is built on three layers: tax-advantaged accounts (401(k), 403(b), IRA, Roth IRA, HSA), Social Security, and any pension or other income. The IRS sets contribution and distribution rules; the Social Security Administration sets benefit eligibility and timing. SECURE 2.0 (signed December 2022) updated several of the most important numbers — the RMD start age, catch-up contribution limits, and Roth treatment of employer matches.
Key laws
Key agencies and resources
Important deadlines and limits
| IRA / Roth IRA contribution deadline | Tax filing deadline of the following year (typically April 15) |
| 401(k) / 403(b) elective deferral deadline | December 31 |
| Required Minimum Distributions (RMD) start age | 73 (born 1951–1959); 75 (born 1960 or later) |
| Earliest Social Security retirement claim | Age 62 (with reduced benefit) |
| Full Social Security retirement age | 67 for those born 1960 or later |
| Delayed retirement credit cap | Age 70 |
All retirement questions (16)
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Can I use an HSA as a retirement account?
Yes. An HSA's triple tax advantage — pre-tax contributions, tax-free growth, tax-free medical withdrawals — makes it more tax-efficient than a traditional IRA or Roth IRA for healthcare expenses. After 65, you can withdraw for any purpose and pay only income tax, making it function like a traditional IRA for non-medical spending.
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How do I open a Roth IRA?
Opening a Roth IRA takes about 15 minutes online — choose a brokerage (Fidelity, Vanguard, or Schwab are the top picks), complete the application, fund the account, and buy index funds. The main requirement is having earned income and falling below the Roth IRA income limits.
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How does a 401k work?
A 401k lets you contribute pre-tax income to a retirement account through your employer — money grows tax-free until withdrawal after 59½. Always contribute at least enough to capture the full employer match.
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How much should I save for retirement?
Save 15% of your gross income for retirement as a starting target — including any employer match. If you started late, aim higher. The exact number depends on your desired lifestyle and retirement age, but 15% invested consistently from your 20s puts you in strong shape.
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What are catch-up contributions?
Catch-up contributions let people aged 50 and older contribute extra money to retirement accounts beyond the standard annual limits. For 2025, the catch-up for 401(k) and 403(b) plans is $7,500, with a special higher catch-up of $11,250 for ages 60–63 introduced by the SECURE 2.0 Act.
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What are the IRA contribution limits?
In 2026, you can contribute up to $7,500 per year to an IRA if you're under 50, or $8,600 if you're 50 or older. This limit is shared across all your IRAs — you cannot contribute $7,500 to a Roth and another $7,500 to a traditional IRA in the same year.
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What happens to my 401k if I quit my job?
Your 401k money is yours when you quit — you do not lose it. You have four options: roll it to your new employer's plan, roll it to an IRA, leave it in the old plan, or cash it out. Cashing out triggers income taxes plus a 10% early withdrawal penalty and is almost always the wrong move.
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What is a 403(b) plan?
A 403(b) is a tax-advantaged retirement plan for employees of public schools, nonprofits, and certain other tax-exempt organizations. It works nearly identically to a 401(k): contributions reduce taxable income, grow tax-deferred, and are taxed as income when withdrawn in retirement.
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What is a required minimum distribution (RMD)?
A required minimum distribution (RMD) is a mandatory annual withdrawal the IRS requires you to take from traditional IRAs, SEP IRAs, and most 401k accounts starting at age 73. The amount is calculated each year based on your account balance and IRS life expectancy tables — failing to take your RMD triggers a 25% penalty on the amount you should have withdrawn.
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What is a Roth IRA vs a traditional IRA?
A Roth IRA uses after-tax dollars and grows tax-free — you pay no tax on withdrawals in retirement. A traditional IRA gives you a tax deduction now and you pay taxes on withdrawal. Choose Roth if you expect to be in a higher tax bracket in retirement; choose traditional if you want the deduction today.
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What is a SEP IRA?
A SEP IRA (Simplified Employee Pension) is a retirement account for self-employed people and small business owners that allows contributions up to $72,000 in 2026 — far more than a regular IRA. It works like a traditional IRA: contributions are tax-deductible and withdrawals in retirement are taxed as ordinary income.
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What is a solo 401(k)?
A solo 401(k) — also called an individual 401(k) or one-participant 401(k) — is a retirement plan for self-employed people with no full-time employees (other than a spouse). It allows much higher contributions than a SEP-IRA at the same income level, because you can contribute as both the employee and employer.
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What is Social Security and how does it work?
Social Security is a federal program that pays monthly retirement income to workers who have accumulated at least 40 credits (roughly 10 years of work). Your benefit amount is based on your highest 35 years of earnings — you can claim as early as 62 (reduced benefit) or as late as 70 (maximum benefit). The longer you wait, the larger your monthly check.
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What is the 4% rule in retirement?
The 4% rule says you can withdraw 4% of your portfolio in the first year of retirement, then adjust for inflation each year, and statistically your money will last 30 years. It is a useful planning benchmark, not a guarantee — lower withdrawal rates (3–3.5%) are safer in today's low-return environment.
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When can I withdraw from my IRA without penalty?
You can withdraw from any IRA without the 10% early withdrawal penalty at age 59½. For a Roth IRA, earnings also need to have been in the account for at least 5 years (the '5-year rule') to be tax-free. Roth IRA contributions — but not earnings — can be withdrawn at any age with no tax or penalty.
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When should I claim Social Security?
Claiming at 62 reduces your benefit by up to 30% permanently. Waiting until 70 increases it by 24% above your full retirement age benefit. The decision hinges on health, life expectancy, other income sources, and spousal strategy — not a single right answer.