401(k) Calculator
Plan your retirement savings with employer matching
Personal Information
$4,500.00 per year
of your contribution
of salary
401(k) Growth Projection
Retirement Breakdown
Maximize Your 401(k)
Always contribute enough to get the full employer match - it's free money! The 2026 contribution limit is $23,500 ($31,000 if 50+). Consider increasing contributions when you get raises. Starting early and contributing consistently makes a huge difference thanks to compound growth.
Understanding Your 401(k)
2026 Contribution Limits
The IRS sets annual limits on how much you can contribute to your 401(k). For 2026, the employee elective deferral limit is $23,500. Workers aged 50 and older can make an additional catch-up contribution of $7,500, bringing their total to $31,000. The combined employee-plus-employer limit is $70,000 ($77,500 with catch-up). These limits are adjusted periodically for inflation. Contributions to a traditional 401(k) are pre-tax, lowering your taxable income for the year. For instance, a $23,500 contribution in the 24% bracket saves $5,640 in federal taxes that year.
How Employer Matching Works
Many employers match a portion of your contributions — the most common formula is 50 cents per dollar on the first 6% of salary. If you earn $80,000 and contribute 6% ($4,800), your employer adds $2,400. That is an instant 50% return on your contributed dollars before any market gains. Some employers offer dollar-for-dollar matches or tiered formulas. Employer contributions may vest over time — a 3-year graded vesting schedule, for example, means you own 33% after year one, 67% after year two, and 100% after year three. Always contribute at least enough to capture the full match.
Traditional vs. Roth 401(k)
A traditional 401(k) uses pre-tax dollars — your contributions reduce your taxable income today, but withdrawals in retirement are taxed as ordinary income. A Roth 401(k) uses after-tax dollars — there is no upfront tax break, but qualified withdrawals in retirement are completely tax-free. Choose traditional if you expect to be in a lower tax bracket in retirement; choose Roth if you expect the same or higher bracket. Many financial planners recommend splitting contributions between both for tax diversification.
Early Withdrawal Penalties
Withdrawing from a 401(k) before age 59½ generally triggers a 10% early withdrawal penalty plus ordinary income tax on the distribution. Exceptions include the Rule of 55 (penalty-free withdrawals if you leave your job at age 55 or later), certain hardship withdrawals, and Substantially Equal Periodic Payments (SEPP/72(t)). Loans from your 401(k) are another option — most plans allow you to borrow up to 50% of your vested balance or $50,000, whichever is less, and repay with interest over five years.
Frequently Asked Questions
How much should I contribute to my 401(k)?
Financial advisors generally recommend contributing at least enough to get your full employer match — otherwise you are leaving free money on the table. Beyond that, aim for 10–15% of your gross salary for a comfortable retirement. If you start in your 20s, even 10% can build substantial wealth by age 65 thanks to compound growth.
What is the 401(k) contribution limit for 2026?
The IRS 401(k) employee contribution limit for 2026 is $23,500. If you are 50 or older, you can make an additional catch-up contribution of $7,500, for a total of $31,000. The combined employer plus employee limit is $70,000.
What happens to my 401(k) if I leave my job?
Your 401(k) balance stays yours. You can leave it in your former employer's plan, roll it into your new employer's 401(k), roll it into a Traditional IRA, or cash it out (though cashing out triggers income tax and a 10% early withdrawal penalty if you are under 59½).
What is the difference between a Traditional and Roth 401(k)?
Traditional 401(k) contributions are pre-tax, reducing your taxable income now but taxed upon withdrawal in retirement. Roth 401(k) contributions are after-tax, so withdrawals in retirement are tax-free. Choose Roth if you expect to be in a higher tax bracket in retirement.
Can I contribute to both a 401(k) and an IRA?
Yes. The 401(k) and IRA have separate contribution limits. You can max out your 401(k) at $23,500 and also contribute up to $7,000 to an IRA ($8,000 if 50+) in the same year. However, your Traditional IRA deduction may be limited if you are covered by a workplace plan and your income exceeds certain thresholds.