Retirement Calculator USA

Traditional 401(k): contributions are pre-tax now, taxed on withdrawal in retirement. Roth 401(k): contributions are post-tax now, withdrawals tax-free in retirement. Pick Traditional if you're in a high tax bracket now and expect lower in retirement. Pick Roth if you're early-career, expect higher future income, or want tax-free withdrawals. Many people split — take the full employer match in whichever, then contribute extra to a Roth IRA if eligible.

Bare minimum: enough to capture your full employer match — typically 5-6% of salary to get a 3-4% match. That's free money you'd otherwise leave on the table. Aim higher: financial advisors generally suggest 10-15% of pre-tax income for retirement (employer match counts toward this). 2026 IRS limit: $23,500 ($31,000 if you're 50+). Beyond the 401(k) limit, also consider Roth IRA ($7,000 limit) and HSA.

Age 59½ for most withdrawals. Earlier withdrawals trigger a 10% IRS penalty plus regular income tax. Exceptions: Rule of 55 (left employer in/after the year you turn 55 — applies only to that employer's 401(k)), SEPP/72(t) substantially equal periodic payments, hardship withdrawals (medical, primary home), and certain qualified disasters. Roth contributions (not earnings) can be withdrawn anytime tax-free.

No — this calculator focuses on your personal retirement accounts (401k, IRA, taxable brokerage). Social Security is a separate pillar. Full Retirement Age (FRA) is 67 for anyone born 1960+. Average monthly SS benefit in 2026 is ~$1,950. To estimate your specific benefit, use the SSA's Quick Calculator at ssa.gov. Most retirees combine 401k withdrawals + Social Security + maybe pension to fund retirement.

Historical US stock market (S&P 500) returns: ~10% nominal / ~7% real (after inflation) over 100+ years. For a typical retirement portfolio (target-date fund or 80/20 stocks/bonds), use 7% as a baseline. Conservative: 6%. Aggressive (heavy equity): 8%. Inflation has averaged ~3% over long periods. The calculator separates nominal and real values so you can see both.

Originated from the 1994 Trinity Study: withdrawing 4% of your portfolio in year 1 then adjusting for inflation annually has historically lasted 30+ years across most US market scenarios. So a $1M portfolio = $40k year 1 income, growing with inflation. Recent research (Bengen, Kitces) suggests 4% is conservative but solid for a 30-year retirement. Adjust down to 3-3.5% for early retirement (40+ year horizon).

For most people: target-date funds. They auto-adjust your stock/bond allocation as you approach retirement (e.g. Vanguard Target Retirement 2055). Low fees, hands-off, behaviorally smart. Pick individual funds only if you know what you're doing AND have a clear reason (lower fees, specific allocation, tax-loss harvesting). The 'three-fund portfolio' (total US stock + international + bond) is a classic alternative.

Yes — IRS catch-up contributions let you add $7,500 extra to your 401(k) and $1,000 extra to your IRA each year from age 50. So a 55-year-old can contribute up to $31,000 to 401(k) + $8,000 to IRA = $39,000 in tax-advantaged retirement savings annually. Starting late means catching up matters: even 15 years of $30k+ contributions at 7% returns becomes $750k by 65.