Retirement comes down to three decisions: how much to save, which accounts to save it in, and how to turn the balance into income without paying more tax than you need to. This hub covers 401(k)s and IRAs, Roth strategy, Social Security, Medicare, required minimum distributions and early retirement (FIRE), with the 2026 limits and every DigitalWealthSource guide and tool on the subject.
2026 limits from the IRS, Social Security figures from the SSA and Medicare figures from CMS, as recorded in the site's figures registry.
These figures reset every year. The 2027 retirement limits usually arrive in November and the Social Security adjustment in October; this page is updated when they do.
Saving comes first, and the order matters more than the product. Take any employer match before anything else, because it is an instant return no investment can promise. An HSA, if your health plan allows one, is the only account that can be tax-free going in, while it grows and on the way out for medical costs. After that the choice is between Roth and traditional money: pay tax now at today's rate, or deduct now and pay at whatever your rate is in retirement. Most people end up with some of each, which gives them room to choose which bucket to draw from later.
Social Security is the largest asset many households own, and the claiming age is one of the few levers you control. Full retirement age is 67 for anyone born in 1960 or later. Claiming at 62 cuts the monthly benefit by 30%; each year you wait past full retirement age adds 8%, until 70. For married couples the higher earner's decision also sets the survivor benefit, so it often pays for that spouse to wait.
Medicare starts at 65, and the enrollment window matters: the initial period runs for seven months around your 65th birthday month, and missing it can mean a late-enrollment penalty that lasts for life. Premiums for higher earners are set by income from two years earlier, so a Roth conversion or a large capital gain at 63 can raise Part B and Part D costs at 65.
Required minimum distributions start at 73, or 75 for anyone born in 1960 or later, and they are taxed as ordinary income. Missing one costs an excise tax of 25% of the amount not taken, cut to 10% if you correct it within two years. The years between retiring and your first distribution are often the cheapest time to convert traditional money to Roth.
Early retirement changes the math. The 4% rule, withdrawing 4% of the starting balance in year one and raising it with inflation, comes from historical 30-year periods; a 40- or 50-year retirement needs a lower rate or more flexibility. Early retirees also need a way to reach retirement money before 59½ without the 10% penalty: the rule of 55 for a 401(k) left at a job, a Roth conversion ladder, whose conversions can be withdrawn penalty-free after five years, or substantially equal periodic payments.
Each path is a short reading order. Start at step 1 and stop when your question is answered.
For deciding where each retirement dollar goes.
For anyone within ten years of claiming.
For a retirement that starts before the usual age.
For turning savings into income in retirement.
Employees can put $24,500 into a 401(k), 403(b) or the federal Thrift Savings Plan in 2026, plus an $8,000 catch-up at 50 or older, or $11,250 at ages 60 through 63. The IRA limit is $7,500, plus a $1,100 catch-up at 50 or older. Direct Roth IRA contributions phase out between $153,000 and $168,000 of income for single filers and between $242,000 and $252,000 for joint filers.
A common starting point is 15% of gross pay, counting any employer match, from your twenties onward; starting later means saving more. The target most planners use is enough to cover your expected spending after Social Security, which a 4% first-year withdrawal rate turns into a rough goal of 25 times the gap. The Am I On Track tool compares your savings with benchmarks for your age.
You can claim from 62, but the benefit is 30% lower than at a full retirement age of 67, and it grows 8% for each year you wait past full retirement age, up to 70. Waiting usually pays if you expect to live into your mid-80s or longer, and for married couples the higher earner's claiming age also sets the survivor benefit.
Required minimum distributions from traditional IRAs and most workplace plans start at 73, or at 75 for anyone born in 1960 or later. Missing one triggers an excise tax of 25% of the amount you should have taken, reduced to 10% if you correct it within two years. Roth IRAs have no required distributions during the owner's lifetime.
Traditional contributions save tax now and are taxed when withdrawn; Roth contributions are taxed now and come out tax-free. Roth tends to win when your tax rate today is lower than you expect it to be in retirement, and traditional when it is higher. Holding both gives you room to manage your taxable income once you retire.
The 4% rule comes from historical 30-year retirements. For a retirement of 40 years or more, many planners use 3.25% to 3.5%, or a flexible rule that cuts spending after bad market years. The FIRE Withdrawal Backtester tests your own rate against past markets.