Retirement Planning
Understand 401(k)s, IRAs, Roth accounts, and contribution limits. Build a tax-efficient retirement strategy that compounds for decades.
2026 contribution limits
Know your maximums — these reset every January 1
401(k) / 403(b)
$23,500
$7,500 (age 50+)
$69,000
IRA / Roth IRA
$7,000
$1,000 (age 50+)
$7,000
SEP IRA
—
—
$69,000 or 25% comp
Solo 401(k)
$23,500
$7,500
$69,000
Account types compared
Tax treatment and who each account type works best for
Roth IRA
$7,000/yrTraditional IRA
$7,000/yr401(k)
$23,500/yrRoth 401(k)
$23,500/yrSolo 401(k)
$69,000/yrWhat most people get wrong
Four retirement concepts that change outcomes dramatically
Compound growth makes early contributions 10x more powerful
A $5,000 contribution at 25 grows to ~$108,000 by 65 at 8% returns. The same $5,000 invested at 45 grows to only ~$23,000. Starting early is worth more than investing more later.
The Roth backdoor for high earners
If your income exceeds Roth IRA limits ($161K single / $240K married in 2026), you can contribute to a Traditional IRA with no deduction, then immediately convert it to Roth — legally avoiding the income limit.
Required Minimum Distributions (RMDs) at 73
Traditional 401(k) and IRA accounts require minimum withdrawals starting at age 73. These are taxed as income and can push you into higher brackets. Roth IRAs have no RMDs — ever.
Social Security strategy matters enormously
Claiming at 62 vs. 70 can mean a 76% difference in monthly benefit. Each year you delay past full retirement age adds 8% to your benefit. If you're healthy, delaying to 70 often pays off within 12 years.