FinaBench Labs

⚙️ Overlay Cohorts:

Global 🧪 Experimental U.S. National

State:

🧪 Global Top 1.5% Worldwide

🇺🇸 U.S. National Top 42.3% 131M HHs

💵 Annual Household Income ($) Pre-tax total annual cash income across all household members

U.S. Household Income Distribution Curve

Your position along the household income probability density curve. Hover over the chart to inspect details.

🎚️ Slide Rule: $100,000

$0 $250k $500k $750k $1M+

Percentile Benchmarks Comparison

10th Percentile$22,000

25th Percentile$42,000

Median (50th)$80,000

You (Your Income) (Top 42.3%)$100,000

75th Percentile$145,000

90th Percentile$235,000

99th Percentile$650,000

💡 Do your numbers look off? How to calculate total household income accurately

To get the most accurate demographic percentile rank, make sure your annual income figure includes all working members and all revenue streams across your household:

👥 Combine Household Members: Include pre-tax annual earnings for everyone living in your household (spouse, partner, or working dependents).
💼 Multiple Jobs & Side Gigs: Combine income from all jobs, W-2 wages, hourly pay, side hustles, freelancing, 1099 contracts, overtime, and bonuses.
🏠 Rental & Property Revenue: Include net rental property income, real estate leasing profits, and distribution payouts.
📈 Investment & Passive Income: Add stock dividends, interest earnings, capital gains distributions, annuities, business profits, or pensions.

💡 Annual Investable Savings ($) Total annual dollars available to invest across tax-advantaged accounts

🎚️ Slide Rule: $20,000

$0 $50k $100k $150k+

Auto-calculate from income:

Investable Pool $20,000

                      Sheltered in Tax Accounts
                      $20,000
                    

Taxable Overflow $0

🏆 The Wealth Building Waterfall

IRS Contribution Limits: Fiscal Year 2026

Dynamic tax shelter allocation calibrated for 2026 IRS contribution limits.

How to systematically invest your annual savings pool to maximize tax-sheltered growth. Change the Annual Investable Savings ($) input on the left to test different savings amounts!

Health Savings Account (HSA)

Cap: Family ($8,550)

Maximize your contributions to get the triple-tax advantage (tax-deductible contributions, tax-free growth, and tax-free withdrawals for medical expenses). Ideal if you have a High Deductible Health Plan (HDHP).

$0 / $8,550 (0%)

401(k) Initial Match

Cap: 4% of income

Contribute exactly enough to your employer-sponsored 401(k) to capture the maximum employer match. This is an instant, guaranteed 50% to 100% return on your money.

$0 / $0 (0%)

Individual Retirement Account (IRA)

Cap: Two IRAs ($14,000)

Contribute to a Traditional or Roth IRA to expand your investment options and gain tax-advantaged growth. Maximize this before completing your 401(k) to avoid high plan fees.

$0 / $14,000 (0%)

401(k) Full Amount

Cap: $23,500

Go back to your employer 401(k) and increase your contributions up to the annual pre-tax contribution limit to significantly lower your taxable income.

$0 / $23,500 (0%)

401(k) Mega Backdoor Roth

Cap: After-tax ($46,500)

If your plan allows, make after-tax contributions to your 401(k) and immediately convert them into a Roth 401(k) or Roth IRA. This lets you contribute up to the higher IRS limit.

$0 / $46,500 (0%)

Trump Accounts (530A) & 529 Education Savings

Trump Accounts (530A) & 529

For family financial growth and dependent planning:

Trump Accounts (530A) / ABLE Savings (Section 529A/530A): Special tax-free investment accounts for children, dependents, and individuals with disabilities or special needs. Contributions grow 100% tax-free and do not jeopardize government support or benefit eligibility.
529 College & Education Savings: Tax-free growth and tax-free withdrawals for college, tuition, trade programs, and books. SECURE 2.0 Perk: Up to $35,000 in unused 529 funds can roll directly into a Roth IRA for your child!

$0 / $50,000 (0%)

🔄 The Conversion Phase: Traditional → Roth

How to systematically move money from pre-tax Traditional accounts to post-tax Roth accounts to achieve lifetime tax advantages.

Backdoor Roth IRA

If your income exceeds the direct Roth IRA contribution limit (e.g. $161,000 for singles, $240,000 for families), contribute to a traditional pre-tax IRA with after-tax dollars and immediately convert it to a Roth IRA. Warning: Be mindful of the IRS Pro-Rata Rule if you hold other pre-tax IRAs!

Mega Backdoor Roth 401(k)

If your employer 401(k) supports after-tax contributions and in-service withdrawals, you can contribute after-tax cash (up to the defined contribution limit) and instantly convert it to your Roth 401(k) or Roth IRA. This allows you to convert massive amounts of post-tax cash annually.

Annual Roth Conversion Ladder

In low-income or gap years (e.g. early retirement, career changes), convert chunks of your Traditional 401(k)/IRA to Roth. You pay income tax on the converted amount at your current low bracket, and the money grows completely tax-free forever after.

🛒 The Spend Phase: Systematic Withdrawals

Systematic withdrawal sequencing to draw down retirement assets while minimizing the lifetime impact of ordinary income tax.

Tier 1

Taxable Brokerage Accounts (First)

Draw down taxable cash and assets first. Long-term capital gains tax rates (0%, 15%, or 20%) are significantly lower than ordinary income tax rates. This lets your tax-sheltered retirement accounts continue compounding untouched.

Tier 2

Traditional Pre-Tax Accounts (Second)

Withdraw from Traditional 401(k)s and Traditional IRAs next. Keep these withdrawals clamped to fill up your lowest tax brackets. Note that Required Minimum Distributions (RMDs) will eventually force withdrawals starting at age 73.

Tier 3

Roth Tax-Free Accounts (Last)

Touch your Roth accounts last. Because Roth growth and withdrawals are 100% tax-free and have no Required Minimum Distributions (RMDs), keeping them locked as long as possible yields the maximum tax-free compounding velocity.

📝 Roth vs. Traditional: Tax Strategy

Traditional (Pre-Tax)

Deduct Now, Pay Later: Contributions lower your taxable income today. Withdrawals in retirement are taxed at your future ordinary income rate. Best when you are currently in your high-earning peak years.

Roth (Post-Tax)

Pay Now, Free Later: Contributions are made with after-tax dollars today. Growth and withdrawals in retirement are 100% tax-free. Best when you expect your future tax bracket to be higher.

📊 Account Comparison Table

Feature	401(k) Plan	IRA Plan
How it Works	Employer-sponsored group plan	Individual account set up at a brokerage
Contribution Limit	$23,500 (pre-tax/Roth) + catch-up	$7,000 + catch-up
Employer Match	Yes, commonly offered (free money)	No match
Investment Choice	Limited list selected by employer	Virtually unlimited (stocks, ETFs, mutual funds)
Withdrawal Rules	Ordinary income tax on pre-tax; age 59½	Roth contributions can be withdrawn anytime tax-free

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