Year-by-Year Projection
| Age | Salary | You + Match | Balance |
|---|
The 4% Rule
William Bengen's famous rule says you can withdraw 4% of your retirement portfolio in Year 1, adjust for inflation each year after, and have a 95% chance of not running out of money over 30 years. So a $1M portfolio provides $40,000/year in retirement income (before Social Security).
2026 Contribution Limits
- 401(k) employee: $23,500 (under 50) / $31,000 (50+) / $34,750 (60-63 catch-up)
- 401(k) total (including employer): $70,000
- IRA: $7,000 (under 50) / $8,000 (50+)
- HSA: $4,400 single / $8,750 family (55+: +$1,000)
Always Get the Full Match
If your employer matches 5% of salary and you only contribute 3%, you are leaving free money on the table. A 100% match is a 100% instant return — no investment on earth beats that. Contribute at least enough to get the full match, always.
Traditional vs Roth 401(k)
Traditional: contribute pre-tax, pay tax when you withdraw. Best if you expect to be in a lower tax bracket in retirement.
Roth: contribute after-tax, withdraw tax-free. Best if you expect to be in a higher tax bracket in retirement, or you are early in your career with a low current tax rate.
Most experts now recommend splitting between both to hedge tax-rate uncertainty. Read our full Roth vs Traditional guide.