US Retirement Savings Priority Optimizer

Where should the next dollar go — 401(k), HSA, Roth IRA, or Mega Backdoor? Enter your income, age, monthly savings, and 401(k) match terms to get the standard Bogleheads-flavored priority waterfall under 2026 IRS limits, with catch-up and Roth-phase-out handling baked in.

Last reviewed Apr 29, 2026 · Editorial

2026 limits · IRS Notice 2025-67 · Rev. Proc. 2025-22

For information only — not investment, financial, or tax advice. This calculator estimates results based on the inputs you provide. It does not constitute professional advice and infoz.com is not a CPA, EA, attorney, or registered investment adviser. Tax laws change. Individual circumstances vary. Consult a qualified professional licensed in your jurisdiction before making any financial decision.

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Bookmark or share this URL to revisit your scenario. CSV breaks down every bucket's recommended annual allocation.

Annual savings to allocate

$48,000

Tax-advantaged capacity: $31,500

Free employer match: $4,500
HSA cap: $0
Roth IRA cap (effective): $7,000
Mega Backdoor headroom: n/a

You're saving above your tax-advantaged cap — the overflow goes to taxable brokerage. Consider whether you can enable Mega Backdoor Roth at your employer (see the toggle).

Priority waterfall

Every dollar you save flows top-down through these buckets in order. The first one fills before the next one starts.

401(k) — to employer match (6.0% of salary)
$9,000/ $9,000
Free money. Always take the full employer match before doing anything else.
Roth IRA
$7,000/ $7,000
Tax-free growth + tax-free withdrawal in retirement. Use for after-tax dollars now (post-401k-deduction).
401(k) — fill to employee deferral limit
$15,500/ $15,500
Tax-deferred growth. Diversifies your tax exposure relative to the Roth IRA bucket.
4
Mega Backdoor Roth (plan does not permit)
$0/ $42,000
Only ~40% of 401(k) plans permit after-tax contributions and in-plan conversions. Ask your plan administrator — if available, this dramatically boosts tax-advantaged room.
Toggle "Mega Backdoor Roth available" if your plan permits this.
5
Taxable brokerage
$16,500
After all tax-advantaged room is filled. Use index funds with low turnover; long-term capital-gains rates beat ordinary income.

2026 IRS limits at a glance

Account	Base limit	Catch-up
401(k) employee deferral	$24,500	+$7,500 (age 50+) · +$11,250 (age 60–63)
§415 total (incl. employer + after-tax)	$71,000	—
IRA (Traditional / Roth)	$7,000	+$1,000 (age 50+)
HSA (self-only HDHP)	$4,300	+$1,000 (age 55+)
HSA (family HDHP)	$8,550	+$1,000 (age 55+)

Roth IRA phase-out 2026: single $150,000–$165,000 · MFJ $236,000–$246,000.

How this calculator works

The optimizer routes your annual savings through six buckets in priority order. Each bucket fills to its cap before the next starts. The ordering is the Bogleheads consensus and is appropriate for most W-2 employees.

1. 401(k) up to the employer match
Free money, always first. We use grossIncome × matchCapPct as the dollar threshold to capture the full match.
2. HSA (if HDHP-eligible)
Triple tax advantage — deductible going in, tax-free growth, tax-free withdrawal for qualified medical. Cap depends on coverage tier (self-only / family) and age 55+ catch-up.
3. Roth IRA (subject to income phase-out)
Tax-free growth + tax-free withdrawals in retirement. Above the phase-out, contribution drops to zero and we recommend a Backdoor Roth (warning shown in the bucket label).
4. Fill the rest of the 401(k) employee deferral cap
Tax-deferred growth. Cap reflects age-50+ catch-up and the SECURE 2.0 super-catch-up for ages 60–63.
5. Mega Backdoor Roth (if plan permits)
After-tax contributions + in-plan Roth conversion up to the §415 total cap. Headroom = §415 − employee deferral − employer match dollars.
6. Taxable brokerage
Once tax-advantaged buckets are filled. Use index funds with low turnover; long-term capital-gains rates beat ordinary income.

bucket_n_allocation = min(remaining_capacity, bucket_n_cap) remaining_capacity ← remaining_capacity − bucket_n_allocation

Worked example: Single, 35, $150K gross, $4K/mo savings, 50% match up to 6%, no HSA, no Mega Backdoor

Annual savings capacity: 4,000 × 12 = $48,000 1. 401(k) match cap = $150,000 × 6% = $9,000 → fill $9,000 (capacity left $39,000) 2. HSA: not enabled → skipped 3. Roth IRA: gross $150K = at the phase-out floor; full $7,000 cap → fill $7,000 (left $32,000) 4. 401(k) rest: $24,500 cap − $9,000 already used = $15,500 headroom → fill $15,500 (left $16,500) 5. Mega Backdoor: not available → $0 6. Taxable: $16,500 Result: $31,500 in tax-advantaged buckets + $16,500 in taxable. Free employer match dollars: $9,000 × 50% = $4,500. Verdict: capacityExceedsCap = true (could absorb more if Mega Backdoor were available).

Sources & methodology

Every numeric input to this calculator traces back to one of the following authoritative documents.

IRS — 401(k) and IRA cost-of-living adjustments (Notice 2025-67)primary · accessed 2026-04-29 · Source for 2026 401(k) employee deferral, catch-up, and §415 total limits.
IRS Rev. Proc. 2025-22 — 2026 HSA limitsprimary · accessed 2026-04-29 · Self-only $4,300 / family $8,550 / age-55 catch-up $1,000.
Bogleheads wiki — Prioritizing investmentssecondary · accessed 2026-04-29 · The community-vetted ordering this calculator implements.
SECURE 2.0 Act — Section 109 super-catch-up (60–63)primary · accessed 2026-04-29 · The 150%-of-catch-up special rule for ages 60 through 63.

Frequently asked questions

Why isn't this just 'max the 401(k)'?: Because not all tax-advantaged dollars are equal. Free employer match dollars are 100% return. HSA dollars get a triple tax advantage no other account has. Roth IRA dollars are diversification against future tax rates. The 401(k) limit is large but it's not always the next-best dollar — only after the more efficient buckets are filled. The waterfall captures that ordering.
Why does HSA come before Roth IRA?: Because the HSA is unique in US tax law: the contribution is deductible going in, growth is tax-free, AND qualified medical withdrawals are tax-free out. Every other account is taxed on the way in OR on the way out — never both exempt. After age 65 you can also withdraw HSA funds for non-medical purposes at ordinary income rates (effectively another traditional IRA). This dominance gives HSA priority over Roth IRA.
I'm above the Roth IRA income phase-out. What now?: Use a Backdoor Roth: contribute non-deductible to a Traditional IRA (no income limit), then convert to Roth (no income limit on conversion). Watch the pro-rata rule — if you have other pre-tax IRAs, the conversion is partly taxable. The optimizer flags this case in the Roth bucket label but doesn't auto-execute the math; consult a CPA on pro-rata mechanics.
What's the Mega Backdoor Roth and why isn't it always available?: After-tax contributions to a 401(k) (separate from the employee deferral limit and the Roth bucket) plus an in-plan conversion to Roth, up to the §415 total cap of $71,000 in 2026. Only ~40% of plans allow it; the plan needs explicit support for after-tax contributions AND in-plan Roth conversions or in-service rollovers. Ask your plan administrator. If available, it dramatically expands tax-advantaged room.
Does the catch-up logic include the SECURE 2.0 super-catch-up?: Yes. Ages 50–59 and 64+ get the standard $7,500 catch-up. Ages 60–63 get the SECURE 2.0 super-catch-up at $11,250 (the higher of $10,000 or 150% of the standard catch-up, indexed for 2026). The optimizer applies whichever is higher for your age and never stacks them.
Is Roth IRA contribution income limited based on AGI or gross income?: Strictly speaking it's modified AGI (MAGI), but for most W-2 households gross income and MAGI are close enough that the optimizer uses gross. If you have above-the-line deductions or rental losses that significantly lower your MAGI, the actual phase-out cap will be slightly higher than the calculator shows.
How are the 2026 limits set?: 401(k) and IRA limits come from IRS Notice 2025-67, the cost-of-living-adjustment notice for 2026 plans. HSA limits follow Rev. Proc. 2025-22. The Roth phase-out windows are the inflation-indexed brackets for the 2026 calendar year. We re-publish on the day the IRS releases each year's notice.
Is this financial advice?: No. The waterfall is the textbook Bogleheads ordering and is appropriate for most W-2 employees. State-specific tax breaks (NY 529, MA HSA non-conformity, CA HSA non-conformity), self-employment situations (SEP-IRA, Solo 401(k)), and high-income strategies (deferred compensation) are not modelled. Consult a fee-only fiduciary for personalized advice.

Important disclaimers

Calculation logic is based on data verified for 2026 IRS contribution limits (Notice 2025-67, Rev. Proc. 2025-22).

No professional advice. This calculator is provided for informational and educational purposes only and does not constitute investment, financial, or tax advice. infoz.com is operated by Web Publishing Corp, which is not a certified public accountant, enrolled agent, attorney, registered investment adviser, or licensed financial professional in any jurisdiction. Use of this calculator does not create any professional, fiduciary, or advisory relationship.

No warranties. Results are best-effort estimates based on the inputs you provide and the data sources cited. Tax law and financial regulations change without notice; data may be revised, withdrawn, or superseded between releases. We make no warranty, express or implied, that the result is accurate, current, complete, or suitable for your situation.

No liability. To the maximum extent permitted by law, infoz.com, Web Publishing Corp, and the authors disclaim liability for any direct, indirect, consequential, or incidental loss arising from use of this calculator or reliance on its output. You assume all risk of your reliance on the result.

Assumptions baked in:

Single-employer 401(k) plan; assumes the employee deferral limit, not the SIMPLE/SEP-IRA limits.
Bogleheads ordering: match → HSA → Roth IRA → 401(k) → Mega Backdoor → taxable.
Roth phase-out uses gross income as a MAGI proxy; deductions can shift the actual phase-out.
Catch-ups: standard age 50+ ($7,500), super-catch-up ages 60–63 ($11,250). Mutually exclusive — we apply the higher, never both.
Mega Backdoor headroom assumes you fully fill the employee deferral first.

What this calculator does NOT cover:

Self-employed retirement (SEP-IRA, Solo 401(k), Defined Benefit plans).
State-specific tax treatment of HSA contributions (CA, NJ don't conform).
529 plans, ABLE accounts, deferred compensation (NQDC).
Pro-rata rule mechanics for the Backdoor Roth when other Traditional IRAs are present.
Investment selection / asset allocation within each account.
Sequence-of-returns risk and Monte Carlo on the saved balance.

Talk to a professional. For decisions that involve real money — filing a return, structuring compensation, choosing an investment strategy — consult a qualified, licensed professional who can review your full circumstances. The cost of one consultation is almost always less than the cost of a wrong decision.

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Editorial review

Last reviewed

April 29, 2026

Reviewed by

infoz Editorial Team — Editor, Web Publishing Corp

Bogleheads-flavored priority waterfall — limits sourced from IRS Notice 2025-67 + Rev. Proc. 2025-22 + SECURE 2.0 §109. Re-checked annually when the IRS publishes the next year's COLA notice.

Numbers, schedules, and source citations on this page are checked against primary sources during each review cycle. Spot something outdated or wrong? Report an inaccuracy — we triage every report within 7 days.

US Retirement Savings Priority Optimizer

Last reviewed Apr 29, 2026 · Editorial

2026 limits · IRS Notice 2025-67 · Rev. Proc. 2025-22

2026 IRS limits at a glance

Account	Base limit	Catch-up
401(k) employee deferral	$24,500	+$7,500 (age 50+) · +$11,250 (age 60–63)
§415 total (incl. employer + after-tax)	$71,000	—
IRA (Traditional / Roth)	$7,000	+$1,000 (age 50+)
HSA (self-only HDHP)	$4,300	+$1,000 (age 55+)
HSA (family HDHP)	$8,550	+$1,000 (age 55+)

Roth IRA phase-out 2026: single $150,000–$165,000 · MFJ $236,000–$246,000.

Frequently asked questions

Why isn't this just 'max the 401(k)'?

Because not all tax-advantaged dollars are equal. Free employer match dollars are 100% return. HSA dollars get a triple tax advantage no other account has. Roth IRA dollars are diversification against future tax rates. The 401(k) limit is large but it's not always the next-best dollar — only after the more efficient buckets are filled. The waterfall captures that ordering.

Why does HSA come before Roth IRA?

Because the HSA is unique in US tax law: the contribution is deductible going in, growth is tax-free, AND qualified medical withdrawals are tax-free out. Every other account is taxed on the way in OR on the way out — never both exempt. After age 65 you can also withdraw HSA funds for non-medical purposes at ordinary income rates (effectively another traditional IRA). This dominance gives HSA priority over Roth IRA.

I'm above the Roth IRA income phase-out. What now?

Use a Backdoor Roth: contribute non-deductible to a Traditional IRA (no income limit), then convert to Roth (no income limit on conversion). Watch the pro-rata rule — if you have other pre-tax IRAs, the conversion is partly taxable. The optimizer flags this case in the Roth bucket label but doesn't auto-execute the math; consult a CPA on pro-rata mechanics.

What's the Mega Backdoor Roth and why isn't it always available?

After-tax contributions to a 401(k) (separate from the employee deferral limit and the Roth bucket) plus an in-plan conversion to Roth, up to the §415 total cap of $71,000 in 2026. Only ~40% of plans allow it; the plan needs explicit support for after-tax contributions AND in-plan Roth conversions or in-service rollovers. Ask your plan administrator. If available, it dramatically expands tax-advantaged room.

Does the catch-up logic include the SECURE 2.0 super-catch-up?

Yes. Ages 50–59 and 64+ get the standard $7,500 catch-up. Ages 60–63 get the SECURE 2.0 super-catch-up at $11,250 (the higher of $10,000 or 150% of the standard catch-up, indexed for 2026). The optimizer applies whichever is higher for your age and never stacks them.

Is Roth IRA contribution income limited based on AGI or gross income?

Strictly speaking it's modified AGI (MAGI), but for most W-2 households gross income and MAGI are close enough that the optimizer uses gross. If you have above-the-line deductions or rental losses that significantly lower your MAGI, the actual phase-out cap will be slightly higher than the calculator shows.

How are the 2026 limits set?

401(k) and IRA limits come from IRS Notice 2025-67, the cost-of-living-adjustment notice for 2026 plans. HSA limits follow Rev. Proc. 2025-22. The Roth phase-out windows are the inflation-indexed brackets for the 2026 calendar year. We re-publish on the day the IRS releases each year's notice.

Is this financial advice?

No. The waterfall is the textbook Bogleheads ordering and is appropriate for most W-2 employees. State-specific tax breaks (NY 529, MA HSA non-conformity, CA HSA non-conformity), self-employment situations (SEP-IRA, Solo 401(k)), and high-income strategies (deferred compensation) are not modelled. Consult a fee-only fiduciary for personalized advice.

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