What are the 401(k) contribution limits for 2026?

For 2026, the employee contribution limit is $23,500 for those under 50, $31,000 for ages 50-59 and 64+, and $34,750 for ages 60-63 (the SECURE 2.0 'super catch-up'). The total limit including employer contributions is $70,000 ($77,500 for those 50 and older).

How does employer 401(k) matching work?

Employer matching means your company contributes additional money to your 401(k) based on how much you contribute. A common formula is '100% match on the first 6%' — if you earn $100,000 and contribute 6% ($6,000), your employer also puts in $6,000. That is an instant 100% return on your money. Not maxing your employer match is leaving free money on the table.

Should I choose Traditional or Roth 401(k)?

Traditional 401(k) contributions are pre-tax (reducing your taxable income now) but taxed at withdrawal. Roth 401(k) contributions are after-tax but grow and are withdrawn tax-free. If you expect to be in a lower tax bracket in retirement, Traditional usually wins. If you expect higher taxes in retirement or want tax-free income, Roth is better.

What is the 401(k) super catch-up contribution for ages 60-63?

The SECURE 2.0 Act introduced a 'super catch-up' for participants aged 60-63. In 2026, they can contribute up to $34,750 — that is $11,250 more than the standard $23,500 limit and $3,750 more than the regular catch-up limit of $31,000. This higher limit only applies during ages 60 through 63; at 64, the limit drops back to $31,000.

401(k) Calculator 2026

$10K/year at 7% for 35 years = $1.47M. See your projected balance, employer match, and Traditional vs Roth comparison.

2026 IRS Limits: Employee: $23,500 (under 50) / $31,000 (50-59, 64+) / $34,750 (60-63 super catch-up). Total (employee + employer): $70,000 / $77,500 (50+).

Project your 401(k) balance at retirement

Current age

Retirement age

Current 401(k) balance

Annual salary

Contribution: 10%

1%100%

Percentage of salary contributed to 401(k) each year

A 401(k) is the most powerful retirement tool for W-2 employees. With employer matching, you get an instant 50-100% return on your contributions before any market growth. Max your match first, then increase from there.

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How to Use This Calculator

Tab "Growth Projection"

Enter your current age, retirement age, current 401(k) balance, and annual salary. Adjust the contribution slider (1–100% of salary) and the expected annual return rate (default 7%, which reflects historical inflation-adjusted S&P 500 returns). Expand "More options" to set salary growth rate. The calculator projects your 401(k) balance year by year, showing total contributions, total investment growth, and a collapsible year-by-year breakdown table.

Tab "Employer Match"

This tab shows how much free money your employer contributes through matching. Enter your salary and contribution percentage, then select your employer's match formula: 100% of first X%, a tiered match (50% + 100%), or a custom rate. Add your vesting schedule and years at the company to see how much of the employer match you actually own. The calculator highlights any match left on the table if you are not contributing enough to capture the full employer match.

Tab "Traditional vs Roth"

Compare Traditional 401(k) (pre-tax contributions, taxed at withdrawal) with Roth 401(k) (after-tax contributions, tax-free growth and withdrawals). Enter your current marginal tax rate, expected retirement tax rate, annual contribution, years to retirement, and expected return. The side-by-side table shows total contributions, projected balance, taxes paid, and the after-tax retirement value for each option. The better choice is highlighted in green.

The Formulas

401(k) Growth Projection:
For each year: Contribution = Salary × Contribution %
Balance = (Previous balance + Contribution) × (1 + Return rate)
Salary grows by Salary growth % each year
Contributions capped at IRS limits for your age

Employer Match (100% of first X%):
Match = Salary × min(Your contribution %, X%)

Employer Match (tiered: 50% of first X%, 100% of next Y%):
Match = Salary × (min(Your %, X%) × 0.5 + min(max(Your % − X%, 0), Y%) × 1.0)

Vesting (graded schedule):
Vested match = Employer match × Vesting %
Common 6-year graded: 0%, 0%, 20%, 40%, 60%, 80%, 100%

Traditional vs Roth 401(k):
Traditional: Balance = Sum of (Contribution × (1 + r)^n). After-tax = Balance × (1 − Retirement tax rate)
Roth: Balance = Sum of (Contribution × (1 + r)^n). After-tax = Balance (no tax on withdrawal)
Tax paid now (Roth) = Contribution × Current tax rate × Years

The key insight: Traditional and Roth produce identical after-tax results when your current and retirement tax rates are the same. The difference comes entirely from the tax rate gap. If you expect lower rates in retirement, Traditional wins. If you expect higher rates, Roth wins.

Example

$100,000 Salary — Age 30, 10% Contribution, 7% Return

Current age30

Retirement age65

Current 401(k) balance$50,000

Annual salary$100,000

Contribution rate10%

Total contributions over 35 years~$621,000

Total investment growth~$2,310,000

Projected balance at 65~$2,981,000

With a 3% annual salary growth, your contributions increase each year from $10,000 to over $26,000 by retirement. The power of compounding turns $621K in contributions plus a $50K starting balance into nearly $3M. If your employer matches 100% of the first 6%, that adds another ~$373K in employer contributions over the same period, pushing the total even higher.

Frequently Asked Questions

How much should I contribute to my 401(k)?▼

At minimum, contribute enough to capture your full employer match — anything less is leaving free money on the table. A common target is 15% of gross income (including employer match) for retirement savings. If you are starting late, aim higher. The 2026 IRS limit is $23,500 for those under 50, $31,000 for ages 50–59 and 64+, and $34,750 for ages 60–63 under the SECURE 2.0 super catch-up provision.

What happens to my 401(k) if I change jobs?▼

Your own contributions are always 100% yours. Employer matching contributions may be subject to a vesting schedule (typically 3–6 years). When you leave, you can: (1) roll the 401(k) into your new employer's plan, (2) roll it into an IRA, (3) leave it with your old employer (if balance exceeds $5,000), or (4) cash out (not recommended — you will owe income taxes plus a 10% penalty if under 59½).

Can I contribute to both Traditional and Roth 401(k)?▼

Yes, if your employer offers both options. You can split your contributions between Traditional and Roth in any proportion, but the combined total cannot exceed the annual limit ($23,500 for 2026, or more with catch-up). Many financial advisors recommend splitting contributions to diversify your tax exposure in retirement — some tax-free Roth income and some taxable Traditional income gives you flexibility.

What is the difference between a 401(k) and an IRA?▼

A 401(k) is employer-sponsored with higher contribution limits ($23,500 vs $7,000 for an IRA in 2026) and potential employer matching. An IRA (Individual Retirement Account) is opened independently and offers more investment choices. You can contribute to both. The 401(k) often has limited fund options chosen by your employer, while an IRA gives you access to virtually any stock, bond, ETF, or mutual fund. The ideal strategy is: (1) max employer match in 401(k), (2) max IRA, (3) go back and max 401(k).

When can I withdraw from my 401(k) without penalty?▼

Penalty-free withdrawals are generally available at age 59½. Exceptions include: the Rule of 55 (leaving your job at 55+ and withdrawing from that employer's plan), substantially equal periodic payments (SEPP/72t), qualified birth or adoption distributions (up to $5,000), and certain hardship withdrawals. Early withdrawals typically incur a 10% penalty plus income taxes. Required Minimum Distributions (RMDs) begin at age 73 for Traditional 401(k) accounts; Roth 401(k) accounts are now exempt from RMDs starting in 2024 under SECURE 2.0.

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