What to Know About Retirement
What are my retirement account options?
The most common retirement account options are 401(k)s and IRAs (individual retirement accounts). 401(k)s are workplace retirement plans, and IRAs are available regardless of where you work. Both options come in traditional and Roth. The difference between Roth and traditional, and what to consider about all four account types, is laid out in the chart below:
IRA:
| What It Means | Contribution Limits | Required Minimum Distributions | What to Consider | |
|---|---|---|---|---|
TRADITIONAL |
Allows you to invest pre-tax and reduces your taxable income. You'll pay taxes on what you withdraw in retirement. | For 2026: Under 50: $7,500 50 and older: $8,600 Limit applies to the total of all your traditional and Roth IRA contributions for the year, not each account separately. High earners may be restricted from contributing the full amount—see note 1 below for more information. |
Traditional IRAs have required minimum distributions (RMDs), meaning the minimum amount you must withdraw from the account each year. You generally have to start taking these at age 73. | Focus on your tax bracket—if you think you’ll retire in a lower tax bracket, traditional may be the way to go because your withdrawals will be taxed at the lower rate. |
ROTH |
Contributions are after-tax dollars. Your withdrawals in retirement will be tax-free. | For 2026: Under 50: $7,500 50 and older: $8,600 Limit applies to the total of all your traditional and Roth IRA contributions for the year, not each account separately. High earners may be restricted from contributing the full amount—see note 1 below for more information. |
No RMDs for the original owner. You can invest your money longer, and you can pass a Roth IRA to your heirs tax-free. | If you think your tax bracket will be higher when you retire, Roth could be the better choice. Your contributions will be taxed at your current income tax, and they’ll be tax free when you withdraw them in retirement. |
401(k):
| What It Means | Contribution Limits | Required Minimum Distributions | What to Consider | |
|---|---|---|---|---|
TRADITIONAL |
Allows you to invest pre-tax and reduces your taxable income. You'll pay taxes on what you withdraw in retirement. | For 2026: Under 50: $24,500 50 and older: Eligible for an additional $8,000 of catch-up contributions, bringing the total to $32,500 Age 60 to 63: Some plans allow for "super catch-up contributions," which are a total of $35,750 for 2026. Limit applies to the total of all your traditional and Roth 401(k) contributions for a year, not each account seperately. |
Traditional 401(k)s have required minimum distributions (RMDs), meaning the minimum amount you must withdraw from the account each year. You generally have to start taking these at age 73. Unless you're a 5% owner of the business sponsoring the plan, you may delay taking your RDMs until the year you retire. |
Focus on your tax bracket—if you think you’ll retire in a lower tax bracket, traditional may be the way to go because your withdrawals will be taxed at the lower rate. |
ROTH |
Contributions are after-tax dollars. Your withdrawals in retirement will be tax-free. | For 2026: Under 50: $24,500 50 and older: Eligible for an additional $8,000 of catch-up contributions, bringing the total to $32,500 Age 60 to 63: Some plans allow for "super catch-up contributions," which are a total of $35,750 for 2026. High earners may be restricted from contributing the full amount—see note 1 below for more information. Limit applies to the total of all your traditional and Roth 401(k) contributions for a year, not each account seperately. |
No RMDs for the original owner. You can invest your money longer, and you can pass a Roth 401(k) to your heirs tax-free. | If you think your tax bracket will be higher when you retire, Roth could be the better choice. Your contributions will be taxed at your current income tax, and they’ll be tax free when you withdraw them in retirement. |
1: High earners may be restricted from contributing the full amount to an IRA. For example, those who are married and filing jointly must have a modified adjusted gross income (MAGI) below $242,000 to make the full contribution. Those with a MAGI between $242,000 and $252,000 can make a partial contribution, and those with a MAGI above $252,000 cannot make a contribution. Contact your local financial advisor to talk through your specific situation and contribution amount that’s the best fit for your income and lifestyle.
Where should I start when it comes to saving for retirement?
The best (and simplest) place to start is with your workplace retirement plan, especially if your employer matches contributions. Contribute up to the level that your employer matches, then, when you want to or are able to contribute more, prioritize an IRA. Once you hit your IRA contribution limit, go back to the workplace retirement account. If you’re self-employed, a freelancer, or a business owner and can’t open a 401(k), you can start saving for retirement by leveraging a simple IRA.
I’m not sure if I’m saving enough for retirement. How can I figure out whether I’m on track?
Our team can double check your plan to make sure your current strategy will get you to your retirement goals. We’ll meet one-on-one with you to review your accounts and offer a second opinion to make sure you’re set up for success.
