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401(k) Calculator

A 401(k) does three things at once: it moves money out of your taxable income today, it collects whatever your employer is willing to add, and it grows without an annual tax bill on dividends and gains.

$

Share of each paycheck that goes into the plan, before tax.

The catch-up rules depend on age: 50 and over, or 60 to 63.

100 means dollar for dollar. 50 means 50 cents per dollar deferred.

The share of salary the employer is willing to match, in percent of pay.

$

Used for the tax saved by deferring, and for the tax due on withdrawals.

Contribution rates usually stay the same, so the deposit grows with salary.

Results update as you type. Nothing leaves your device.

Total going into the plan this year

$9,350.00

$6,800 from you and $2,550 from your employer at a 8% deferral

Your contribution
$6,800.00
Employer match
$2,550.00
Tax saved this year
$1,496.00
Limit for your age
$24,500.00

Who is paying into the plan

  • You$6,800.00
  • Employer match$2,550.00

The match is part of the pay package. Deferring at least the matched percentage is the one decision with an immediate, guaranteed return.

The 2026 deferral limits by age

Age during the yearDeferral limitCatch-up includedYour band
Under 50$24,500—← yours
50 to 59$32,500$8,00050 to 59
60 to 63$35,750$11,25060 to 63
64 and over$32,500$8,00064 and over

These are the employee elective deferral limits for 2026 (IRS Notice 2025-67). The employer match is paid on top and does not count against them, so the total going in can be larger than the figure in the table.

What different deferral rates produce

You deferYour contributionEmployer matchTotal inMatch missed
2%$1,700$850$2,550$1,700
4%$3,400$1,700$5,100$850
6%$5,100$2,550$7,650—
8%$6,800$2,550$9,350—
10%$8,500$2,550$11,050—
15%$12,750$2,550$15,300—
20%$17,000$2,550$19,550—

The match stops growing once your deferral reaches 6% of salary, which is why the missed-match column empties at that point. Deferring more than that still builds the balance, but the employer stops adding.

What that is worth at 65

MeasureAmount
Balance at retirement$1,121,726
Money paid in$404,312
Growth$717,415
In today money$534,775
Tax due on withdrawals-$246,780
After tax$874,947
After tax in today money$417,124

A traditional 401(k) is pre-tax money: the whole balance is taxed as ordinary income as it comes out. The estimate here applies your current marginal rate to the entire balance, which is deliberately blunt because the real rate depends on how the withdrawals are spread across the years.

Between the deferral and the match, $9,350 goes in this year, of which $2,550 is paid by the employer. Over 30 years at 6% the balance reaches $1,121,726, or $534,775 in today money.

This calculator works out the deferral from your salary, applies the 2026 elective deferral limit for your age, calculates the employer match from the formula your plan uses, and projects the balance to retirement with the tax due on withdrawals shown separately.

How this 401(k) calculator works

The deferral and the 2026 limits

A deferral is a percentage of each paycheck, so the annual contribution is the salary multiplied by that percentage. For 2026 the employee elective deferral limit is $24,500, with a $8,000 catch-up from age 50 and $11,250 for ages 60 to 63 (IRS Notice 2025-67).

Very high earners hit the limit before the year ends, which is worth watching: once the deferral stops, payroll often stops matching too. Spreading the same total across all the paychecks is usually the way to keep the full match.

How the employer match is calculated

A match is described in two parts: how much the employer pays per dollar deferred, and how much of your pay it is willing to match. A common formula is 50% of the first 6% of salary, which pays $0.50 for every dollar you defer up to a 6% deferral, and nothing above it.

That means the match has a ceiling of 3% of salary in this example. Raising your deferral from 3% to 6% doubles your own contribution and doubles the match; raising it from 6% to 10% increases only your own money.

Tax now or tax later

A traditional 401(k) reduces taxable income today and is taxed as ordinary income when the money comes out. The tax saved today is the deferral multiplied by your marginal rate, and the tax due later is the balance multiplied by whatever rate applies to the withdrawals.

If your rate in retirement is lower than it is today, the deduction wins. If it is higher, for example because of a large balance and required minimum distributions, paying the tax now with a Roth account can win instead. The Roth versus traditional calculator compares both with a taxable account.

What is assumed, and what is not

The projection adds the annual contribution in equal monthly instalments, grows it with your pay, and compounds monthly at the return you enter. It does not model vesting schedules, a match that is paid only in company stock, plan fees, or the year-by-year variation in returns.

The tax estimate applies your current marginal rate to the whole balance at retirement, which is deliberately blunt: the real figure depends on spreading withdrawals across years, the brackets in force then, and any income from other sources. Treat the after-tax figure as a scale, not a quote.

Worked examples

Each example below was run through the calculator on this page when the site was built, so the numbers match what you see when you enter the same inputs.

$85,000 salary, 8% deferral, 50% match up to 6%

Annual salary
$85,000.00
You contribute
8%
Your age
35
Pay frequency
Every two weeks (26)
Employer match rate
50%
Match applies up to
6%
Balance today
$25,000.00
Retirement age
65
Annual return
6%
Inflation
2.5%
Marginal tax rate
22%
Pay rises each year
2%

Total going into the plan this year

$9,350.00

$6,800 from you and $2,550 from your employer at a 8% deferral

Your contribution
$6,800.00
Employer match
$2,550.00
Tax saved this year
$1,496.00
Limit for your age
$24,500.00

The deferral of 8% is above the 6% the plan matches, so the full match is collected. The three and a half percent of salary that the employer adds is the part of the result no market return can beat.

A 3% deferral that misses half the match

Annual salary
$85,000.00
You contribute
3%
Your age
35
Pay frequency
Every two weeks (26)
Employer match rate
50%
Match applies up to
6%
Balance today
$25,000.00
Retirement age
65
Annual return
6%
Inflation
2.5%
Marginal tax rate
22%
Pay rises each year
2%

Total going into the plan this year

$3,825.00

$2,550 from you and $1,275 from your employer at a 3% deferral

Your contribution
$2,550.00
Employer match
$1,275.00
Tax saved this year
$561.00
Limit for your age
$24,500.00

Deferring 3% instead of 6% halves the employer contribution. The deferral table shows exactly how much match is unclaimed at each rate.

Catching up at 55

Annual salary
$120,000.00
You contribute
20%
Your age
55
Pay frequency
Every two weeks (26)
Employer match rate
100%
Match applies up to
4%
Balance today
$380,000.00
Retirement age
65
Annual return
6%
Inflation
2.5%
Marginal tax rate
24%
Pay rises each year
3%

Total going into the plan this year

$28,800.00

$24,000 from you and $4,800 from your employer at a 20% deferral

Your contribution
$24,000.00
Employer match
$4,800.00
Tax saved this year
$5,760.00
Limit for your age
$32,500.00

At 20% of a $120,000 salary the planned deferral is $24,000, which is under the $32,500 limit for age 50 and over, so nothing is capped. The limit column only bites when the percentage would push you past it.

Frequently asked questions

What is the 401(k) contribution limit for 2026?

The employee elective deferral limit is $24,500. From age 50 a catch-up of $8,000 applies, taking the total to $32,500, and for ages 60 to 63 the special catch-up is $11,250, taking the total to $35,750. These figures come from IRS Notice 2025-67.

Does the employer match count towards the limit?

No. The elective deferral limit applies to what you contribute from your pay. Employer contributions are paid on top and are covered by a separate, higher limit that combines employee and employer money, so the total going into the plan can be larger than the deferral limit.

How much should I contribute?

At the very least, enough to collect the full match, because that is an immediate return no investment can reliably match. Beyond that it is a choice between tax-deferred saving, paying down high-interest debt and keeping money accessible; a common target is 15% of pay including the match, rising as income grows.

Is the match always mine?

Not always. Many plans use a vesting schedule, which means the employer money becomes yours over a period of years, often three to six, or all at once after a set date. Your own deferrals are always fully vested. Leaving a job before vesting forfeits the unvested part of the match.

Traditional or Roth 401(k)?

A traditional deferral reduces taxable income now and is taxed on withdrawal; a Roth deferral is taxed now and comes out tax-free. The right answer depends on whether your marginal rate will be lower or higher in retirement, which is exactly what the Roth versus traditional calculator works through.

What happens when I take the money out?

Traditional withdrawals are taxed as ordinary income, and taking money before age 59½ normally adds a 10% early distribution penalty on top, with exceptions such as death, disability and certain medical or separation-from-service cases. Required minimum distributions begin in your 70s.

Do plan fees matter as much as the return?

They compound against you exactly as the return compounds for you. A 1% fund expense ratio on a 6% return removes roughly a fifth of the balance over thirty years, which is why the fund menu and any administrative fee deserve as much attention as the contribution rate.

Assumptions and sources

  • 2026 contribution limits: IRS Notice 2025-67, announced in the IRS news release of 13 November 2025 — 401(k) elective deferral $24,500, age 50 catch-up $8,000, ages 60–63 catch-up $11,250, IRA $7,500 with a $1,100 catch-up, SIMPLE $17,000.
  • Matching formulas are entered by the user because every plan is different; the calculator applies the standard structure of a match rate applied to a limited slice of pay, and does not model vesting schedules or a safe-harbour formula.
  • This is not investment advice or tax advice. The tax figures apply a single marginal rate to the whole balance and ignore bracket progression, state tax, required minimum distributions and the penalty rules for early withdrawals.
  • The projection assumes a constant return compounded monthly and deposits in equal monthly instalments. A real plan has a sequence of returns, changing contributions and, often, a fund menu whose fees are subtracted before the return you receive.

Last reviewed 2026-09-14. This page is an estimate tool, not financial, tax or legal advice.Read the full disclaimer.

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