US Retirement System (as of 2026; subject to change)
US retirement is usually described as a three-legged stool: federal Social Security (public pension) + employer 401(k) + personal IRA. Coming from Korea and assuming "the public pension alone will be enough" is a recipe for trouble. Social Security on its own won't cover middle-class retirement — you really do need 401(k) and IRA alongside it.
Social Security (SSA) — the public pension
- Run by the Social Security Administration (ssa.gov).
- Funded by FICA payroll tax of 12.4% (employee 6.2% + employer 6.2%; self-employed pay the full 12.4%).
- Eligibility: 40 credits (roughly 10 years of work).
- Full Retirement Age (FRA):
- For those born after 1960: age 67.
- Early claim from age 62 (with about a 30% lifetime reduction).
- Delaying to age 70 increases benefits roughly 8% per year.
- Average monthly benefit in 2026 is around USD 1,900 (max for high earners around USD 4,800; subject to change).
401(k) — employer retirement savings
- Tax-advantaged account offered by employers; you contribute pre-tax or after-tax (Roth) from your paycheck.
- 2026 contribution limit: about USD 24,000 (catch-up adds about USD 7,500 at 50+, with a larger catch-up at 60–63; subject to change).
- Employer match: typically a percentage of your contributions added by the company — free money; always contribute at least up to the match.
- Plans are generally hosted at fund companies like Vanguard or Fidelity.
- Withdrawals before age 59½ trigger a 10% penalty plus income tax.
- When you change jobs, you can roll over to an IRA.
IRA — individual retirement account
- Traditional IRA: pre-tax contributions, taxable on withdrawal.
- Roth IRA: after-tax contributions, tax-free withdrawals (income limits apply).
- 2026 contribution limit: about USD 7,500 (about USD 1,000 catch-up at 50+; subject to change).
- High earners face direct Roth IRA limits, but the "Backdoor Roth" workaround is widely used.
What Koreans most often ask
Q1. Can I receive both Korean National Pension and US Social Security?
Yes. Under the US–Korea Totalization Agreement:
- Work periods in both countries can be combined to meet the 40 credits / 10-year eligibility test.
- Combination is for eligibility only — the amount reflects each country's own contribution period.
- Workers on assignment pay only one side (typically a 5-year limit).
For details, contact SSA or the international office of Korea's NPS.
Q2. If I give up my green card and return to Korea, can I still receive Social Security?
- Citizens receive benefits no matter where they live.
- After surrendering a green card and moving to Korea: yes, because Korea is a treaty country.
- In some non-treaty countries, payments stop after 6 months abroad.
Q3. Can I take my 401(k) back to Korea?
- You can leave the account in the US and continue investing (most brokerages allow non-resident maintenance).
- US tax rules apply on withdrawal (10% penalty before 59½).
- Korean residents can adjust US withholding under the US–Korea tax treaty.
Eligibility by status
- F-1 students: FICA-exempt for on-campus earnings during the first 5 years. 401(k)/IRA available but eligibility is limited.
- H-1B: pays FICA normally; 401(k) and IRA both available.
- Green-card holder / citizen: full access to all retirement programs.
Useful links
- ssa.gov — Social Security application and calculators
- ssa.gov/international — totalization agreement info
- irs.gov/retirement-plans — 401(k) and IRA limits and rules
- nps.or.kr — Korea NPS, for treaty totalization