Frequently Asked Questions
Straight answers to the questions we get most about the calculators and about 401(k) rules, checked against current IRS limits. For the formulas behind every number, see our methodology page.
About the calculators
Are the calculators free? Do you store my inputs?
Yes, free — no account needed. The numbers you enter stay in your browser; we do not store them on our servers.
What return rate should I use?
We default to 7% — close to the S&P 500’s long-run real (after-inflation) average. The nominal long-run average is roughly 10%, but planning on the best recent decade (15%+) is how projections go badly wrong. Use 6% if you hold a bond-heavy mix.
How accurate is the projection?
The math is exact; the future isn’t. A fixed-rate projection is a planning anchor, not a promise — real markets deliver returns unevenly, which matters most in the last years before retirement (sequence-of-returns risk).
2026 limits & rules
What are the 2026 contribution limits?
$24,500 employee deferral; +$8,000 catch-up at 50+ (total $32,500); +$11,250 instead of the standard catch-up at ages 60–63 (total $35,750). IRA: $7,500 (+$1,100 at 50+). Source: IRS annual notice.
I earn over $150,000 — what changed for my catch-up?
Starting in 2026, if your prior-year FICA wages exceeded $150,000, any catch-up contributions must be Roth (after-tax). If your plan has no Roth option, you can’t make catch-ups in that plan at all — check with HR.
When do RMDs start?
Age 73 today; rising to 75 for people born in 1960 or later. Roth 401(k)s no longer have lifetime RMDs (since 2024). Full walk-through in our RMD guide.
Does a hardship withdrawal avoid the 10% penalty?
No — that’s a common myth. A hardship withdrawal lets you take the money out, but unless you separately qualify for a statutory exception you still owe income tax plus the 10% penalty. Details in our early-withdrawal guide.
Common decisions
Roth or Traditional?
One rule decides it: if your tax rate in retirement will be higher than today’s, Roth wins; if lower, Traditional wins; if equal, it’s a mathematical tie. Our Break-Even Tax Rate framework shows the proof with numbers.
401(k) or IRA first?
401(k) up to the full employer match first — always (it’s an instant 50–100% return). Then IRA for flexibility, then back to max the 401(k). Full ranking in our Priority Score guide.
I’m changing jobs — what about my 401(k)?
Two things before you resign: check your vesting date (leaving weeks early can forfeit five figures of employer match) and use a direct rollover — never let the check come to you.
About this site
Who writes the content?
Articles are written and fact-checked by Daniel Reyes, our retirement research editor, against IRS publications and primary data. He is not a licensed advisor and the content is educational — see our editorial standards.
Found an error?
Tell us — factual corrections are priority and we fix them within 24 hours.