401(k) Contribution Calculator

How to Use This 401(k) Calculator

This 401(k) calculator is organized into five sections to give you a complete retirement projection. Start with Income & Contributions by entering your annual salary and choosing whether to contribute a percentage of your pay or a fixed dollar amount. The default is 6% — a common starting point for most workers. Set your expected annual salary growth rate to reflect your typical raise. The US average is around 3% per year.

In the Employer Match section, choose between Simple Match and Tiered Match. A simple match means your employer matches at one rate up to a cap — for example, 100% of the first 3% you contribute. A tiered match adds a second layer — for example, 100% on the first 3% plus 50% on the next 2%. If you are unsure which structure your employer uses, check your plan summary document or ask your HR department. Getting this right matters because it directly affects how much free money you capture each year.

The Vesting Schedule section lets you model how much of your employer match you actually keep if you leave your job. Choose Immediate if your employer match is yours from day one. Choose 3-Year Cliff if you get nothing until your third anniversary and then receive 100%. Choose 6-Year Graded if you earn 20% per year starting after year one. Enter your current years of service so the calculator can show your vested employer amount separately from the total employer match.

Under Timeline & Current Balance, enter your current age, target retirement age, existing 401(k) balance, and expected annual return. The default return is 7% — the approximate inflation-adjusted historical average of the S&P 500. If you prefer a more conservative estimate, try 5% or 6%. If you have a longer time horizon and are comfortable with stock-heavy allocations, 8% may be reasonable.

Finally, the Tax & Account Type section lets you choose Traditional or Roth, select your filing status, and pick your state. For Traditional 401(k) contributions, the calculator shows your estimated federal and state tax savings in year one and the lifetime tax deferral across all contribution years. If you select Roth, the tax savings box is hidden because Roth contributions are made with after-tax dollars.

Click Calculate My 401(k) Projection to see your results. This 401(k) calculator produces a detailed output including a projected balance at retirement, six summary cards showing your contributions, employer match, investment growth, vested amount, estimated monthly retirement income using the 4% withdrawal rule, and your year one total contribution. Below the cards you will find two charts — a stacked area chart showing how your balance grows over time and a doughnut chart breaking down your final balance by source. Use the Show Year-by-Year Breakdown button to see a detailed table of every year from now to retirement.

Understanding Your 401(k)

A 401(k) is an employer-sponsored retirement savings plan that offers significant tax advantages. With a Traditional 401(k), contributions are made pre-tax — they reduce your taxable income today and your investments grow tax-deferred until you withdraw money in retirement. With a Roth 401(k), contributions are made with after-tax dollars but all growth and qualified withdrawals in retirement are completely tax-free. Many employers offer both options, and some workers split their contributions between the two.

The employer match is the single most valuable benefit in most 401(k) plans. When your employer matches your contributions — even partially — it is an immediate 50% to 100% return on that money before any investment growth occurs. Not contributing enough to capture the full employer match is the equivalent of leaving part of your salary unclaimed. Always contribute at least enough to get the complete employer match before directing additional retirement savings elsewhere.

401(k) plans offer a much higher contribution limit than IRAs. In 2026 you can contribute up to $24,500 to a 401(k) versus $7,500 to an IRA. This makes the 401(k) the primary retirement savings vehicle for most American workers. The optimal strategy for most people is to first contribute enough to the 401(k) to capture the full employer match, then max out a Roth IRA, and then return to the 401(k) if additional retirement savings capacity remains.

How Tiered Employer Match Works

Many large employers use a tiered matching structure rather than a single flat match rate. A common example is 100% match on the first 3% of salary you contribute, plus 50% match on the next 2%. This means on a $75,000 salary, if you contribute at least 5% of your pay ($3,750), your employer contributes $2,250 for the first tier (100% of $2,250) plus $750 for the second tier (50% of $1,500), totaling $3,000 in free employer contributions on top of your own $3,750 — for a combined $6,750 going into your account each year.

The key insight with tiered matching is that you need to contribute above the first tier’s cap to unlock the second tier. In the example above, contributing only 3% captures the first tier but misses the second entirely. Contributing 5% captures both tiers completely. Contributing more than 5% does not increase the match — it only increases your own savings. This 401(k) calculator models both simple and tiered structures so you can see exactly how much employer money you are capturing and whether increasing your contribution rate would unlock additional match dollars.

Understanding Vesting Schedules

Your own 401(k) contributions are always 100% yours. However, your employer’s matching contributions may be subject to a vesting schedule — a timeline that determines how much of the employer match you keep if you leave the company before a certain number of years. The three most common vesting structures are immediate vesting, cliff vesting, and graded vesting.

With immediate vesting, you own 100% of the employer match from the moment it hits your account. With 3-year cliff vesting, you own 0% of the employer match until your third work anniversary, at which point you become 100% vested all at once. If you leave after two years and eleven months, you forfeit the entire employer match. With 6-year graded vesting, you earn ownership gradually — typically 0% in year one, then 20% per year from year two through year six, reaching 100% at the six-year mark.

Vesting schedules are a critical factor when considering a job change. If you are approaching a vesting milestone — especially a cliff — it may be worth waiting a few extra months to lock in thousands of dollars in employer contributions. This 401(k) calculator factors your vesting schedule and years of service into the projected balance, showing both the total employer match and the vested amount you would actually keep today.

How Your Filing Status Affects 401(k) Tax Savings

Your federal tax savings from Traditional 401(k) contributions depend on your marginal tax rate, which is determined by your filing status and taxable income. A single filer earning $75,000 in 2026 falls in the 22% federal bracket after the $16,100 standard deduction. Contributing $4,500 per year (6% of salary) saves approximately $990 in federal taxes in year one. A married couple filing jointly with the same salary would fall in the 12% bracket due to the higher $32,200 standard deduction and wider bracket thresholds, saving approximately $540 on the same contribution.

State taxes add another layer. In high-tax states like California (13.30%), New York (10.90%), or New Jersey (10.75%), the state tax savings from pre-tax 401(k) contributions can be substantial — potentially adding $400 to $600 per year on top of federal savings for a $4,500 contribution. In no-income-tax states like Texas, Florida, or Washington, the state savings are zero. This calculator lets you select your state and filing status so you can see the combined federal and state tax impact of your specific situation.

401(k) Tips for 2026

Increase your contribution by 1% each year. Most people find a 1% increase in contribution rate barely noticeable in their paycheck but the long-term impact is significant. On a $70,000 salary a 1% increase means $700 more per year invested. Over 30 years at 7% return that single 1% increase adds approximately $66,000 to your retirement balance. Many employers offer automatic escalation programs that increase your contribution rate automatically each year — enable this if your plan offers it.

Choose low-cost index funds within your 401(k). Most 401(k) plans offer a range of mutual funds including expensive actively managed funds and low-cost index funds. Look for your plan options and identify the index funds — especially a total US stock market or S&P 500 index fund. Choose the option with the lowest expense ratio. A 1% annual expense ratio versus a 0.05% expense ratio may seem trivial but on a $500,000 balance costs you $4,750 per year in fees that compound against you over time.

Do not cash out your 401(k) when changing jobs. Taking an early distribution before age 59½ triggers a 10% penalty plus ordinary income taxes on the full amount — potentially losing 30% or more of the balance immediately. Instead roll your old 401(k) directly into your new employer plan or into an IRA. This preserves the full tax-advantaged balance and keeps the compound growth working for your retirement.

Starting in 2026, workers who earned more than $150,000 in FICA wages the prior year must make their catch-up contributions as Roth — meaning after-tax dollars only. This rule does not affect workers under the $150,000 threshold, who can still choose traditional pre-tax or Roth for their catch-up amount. If you are a high earner approaching 50, factor this Roth requirement into your tax planning.

Frequently Asked Questions

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

The employee contribution limit for 2026 is $24,500. Workers aged 50 and older can make an additional catch-up contribution of $8,000 for a total of $32,500. Workers aged 60 through 63 qualify for the enhanced super catch-up of $11,250 instead, bringing their total to $35,750. The combined employee and employer contribution limit is $72,000 in 2026. These limits are adjusted annually by the IRS for inflation.

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

At minimum contribute enough to capture your full employer match — that is free money with an immediate return. Beyond that the general recommendation is to contribute 15% of your gross income to retirement across all accounts. If you cannot reach 15% immediately, start with the match amount and increase by 1% per year until you reach your target. For a detailed breakdown of contribution strategies, see our guide on how much to contribute to your 401(k) in 2026.

Traditional or Roth 401(k) — which is better?

If you expect to be in a higher tax bracket in retirement than you are today, the Roth 401(k) is likely better — you pay taxes now at a lower rate and all future growth is tax-free. If you expect to be in a lower bracket in retirement, the traditional pre-tax option saves more overall. Younger workers in lower tax brackets generally benefit more from Roth. Higher earners close to retirement often benefit more from traditional pre-tax contributions. Note that starting in 2026, high earners over $150,000 in prior-year FICA wages must make catch-up contributions as Roth.

Can I have both a 401(k) and an IRA?

Yes — you can contribute to both a 401(k) and an IRA in the same year. The contribution limits are separate. You can contribute $24,500 to a 401(k) and $7,500 to an IRA in 2026 for a total of $32,000 in tax-advantaged retirement savings. Income limits apply for Roth IRA contributions and for deducting traditional IRA contributions if you have a workplace plan.

What is the super catch-up contribution?

Starting in 2025, the SECURE 2.0 Act introduced an enhanced catch-up contribution for workers aged 60 through 63. In 2026 this super catch-up amount is $11,250 — replacing the standard $8,000 catch-up for that specific age window. Combined with the $24,500 base limit, workers aged 60 to 63 can contribute up to $35,750 per year to their 401(k). Once you turn 64, you revert to the standard $8,000 catch-up limit.

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

You can take penalty-free distributions from your 401(k) starting at age 59½. If you separate from service at age 55 or older, the rule of 55 allows penalty-free withdrawals from that employer plan. Required Minimum Distributions must begin at age 73 under current IRS rules. Early withdrawals before 59½ incur a 10% penalty plus ordinary income taxes.

What is a tiered employer match?

A tiered employer match uses two or more matching rates at different contribution levels. For example, your employer might match 100% of the first 3% of salary you contribute, then 50% of the next 2%. This means you need to contribute at least 5% to capture the full match. Tiered matching is common at large employers and typically requires a higher contribution rate than a simple flat match to maximize the benefit. Use the Tiered Match option in this calculator to model your exact plan structure.

How does a vesting schedule affect my 401(k)?

A vesting schedule determines how much of your employer match you keep if you leave your job before a set number of years. Your own contributions are always fully vested. Common schedules include immediate vesting, 3-year cliff vesting where you get 0% until year three then 100%, and 6-year graded vesting where you earn 20% per year starting in year two. If you are considering a job change, check your vesting status first — waiting a few extra months could save you thousands in employer contributions.

How do I read the year-by-year breakdown table?

The year-by-year table shows every year from your current age to retirement. Each row displays your age, the contribution year number, your projected salary for that year, how much you contribute, how much your employer contributes in match, the investment growth earned that year, and your running account balance. This table is useful for spotting the years when IRS limits cap your contributions, seeing the effect of salary growth on your contribution amounts, and understanding how investment growth accelerates in later years through compounding.

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