What is the 401k contribution limit for 2026?

For 2026, the IRS employee contribution limit for 401k, 403b, and most 457 plans is $24,500. Workers age 50 and older can contribute an additional $8,000 catch-up contribution for a total of $32,500 (or $35,750 for those aged 60-63, using the higher SECURE 2.0 catch-up of $11,250). The total annual limit including employer contributions is $72,000. SIMPLE 401k plans have a limit of $17,000.

Should I contribute to Roth 401k or Traditional 401k?

Choose Traditional 401k if you are in a high tax bracket now and expect to be in a lower bracket in retirement (income will drop significantly). Choose Roth 401k if you are in a lower bracket now or expect tax rates to rise. Many financial advisors recommend splitting contributions between both (tax diversification). If your employer offers a match, the match always goes into a traditional (pre-tax) account regardless of your election.

How much should I have in my 401k by age?

Fidelity's retirement savings benchmarks: by age 30 have 1x your salary saved; by 40 have 3x; by 50 have 6x; by 60 have 8x; by 67 have 10x. On a $100,000 salary, these benchmarks translate to: $100,000 at 30, $300,000 at 40, $600,000 at 50, $800,000 at 60, and $1,000,000 at 67.

What happens to my 401k if I leave my job?

You have four options: roll it over to your new employer's 401k, roll it over to an IRA (most recommended for investment flexibility and lower fees), cash it out (triggers income tax plus 10% early withdrawal penalty if under 59.5), or leave it in the old employer's plan (allowed if balance exceeds $5,000, but generally not ideal long-term). A direct rollover avoids all taxes and penalties.

Can I withdraw from my 401k before retirement?

Early withdrawals before age 59.5 trigger a 10% penalty plus ordinary income tax on the amount withdrawn. Exceptions include separation from service at 55 or older, substantially equal periodic payments (72t rule), disability, death, domestic relations orders, and hardship withdrawals. A 401k loan is another option — you can borrow up to 50% of the vested balance ($50,000 maximum) without taxes or penalties, repaid within 5 years.

Not Financial Advice. CalcMoney provides calculators for educational and planning purposes only. Results are estimates and do not constitute financial, tax, or investment advice. Consult a qualified professional before making financial decisions. Terms apply.

Retirement

401(k) Engine.

Your employer match is free money you're either capturing or leaving on the table every paycheck. See your real 401(k) balance at retirement, and what the match alone is worth.

Projected 401(k) balance at retirement with employer match and compound growth
Tax advantage vs. taxable investing: how much more you keep by going pre-tax
Monthly contribution needed to maximize the $24,500 2026 limit plus employer match

IRS COLA Table, Notice 2025-67 / 2026 Limits

Primary Variables

Annual Salary

Contribution Rate

Employer Match

Expected ReturnLIVE RATES

Years to Retirement

Yrs

Starting Position

Current Age

Yrs

Current Balance

401(k) Projection33Y / 10.5%

Projected Balance

$1,240,000

total 401(k) value at retirement

Your Contributions

$277,000

Employer Match

$118,000

Investment Growth

$848,000

Ready

Projected Wealth at Exit

$1,243,000.00

848k

Your Contributions

$277k

Employer Match

$118k

$848k

Growth Trajectory

401(k) Balance by Contribution Rate and Years

Contribution Rate	Annual Contribution	Years	Projected Balance
5%	$0/yr	10 yr	~$65k
10%	$5k/yr	20 yr	~$230k
15%	$10k/yr	30 yr	~$820k
Max $23k	$50k/yr	40 yr	~$3.2M

Complement Your 401(k) With a Roth IRA

Betterment makes it easy to open and automate a Roth IRA alongside your 401(k). Start with any amount.

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Frequently Asked Questions

About the 401k-analyzer

At minimum, contribute enough to get your full employer match, which is essentially free money. The IRS contribution limit for 2026 is $24,500 (plus $8,000 catch-up if you are 50 or older).

Financial planners generally recommend saving 15-20% of your gross income for retirement across all accounts.

An employer match is when your company contributes money to your 401k based on your own contributions. A common match is 50% of the first 6% you contribute, meaning if you earn $100,000 and contribute 6% ($6,000), your employer adds $3,000.

This is an instant 50% return on your contribution.

Important Disclaimer

CalcMoney provides educational financial calculators for informational purposes only. Results are mathematical estimates based on the inputs you provide and do not constitute financial, tax, legal, or investment advice. Actual results may vary based on lender terms, tax regulations, market conditions, and individual circumstances. Always consult a qualified financial professional before making major financial decisions.

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Sources and last checked

IRS COLA table (401k/IRA/SIMPLE, Notice 2025-67) + Rev. Proc. 2025-19 (HSA/HDHP) + IRS.gov Roth IRA phase-out announcement, checked Sep 8, 2026

This calculator's figures come from these sources. We re-check them when new figures are published.

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Compound Interest

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401(k) Engine.

Primary Variables

Starting Position

Projected Wealth at Exit

Growth Trajectory

Complement Your 401(k) With a Roth IRA

Frequently Asked Questions

Sources and last checked

Next Steps

Roth Conversion

F.I.R.E. Calculator

Compound Interest

401(k) Engine.

Primary Variables

Starting Position

Projected Wealth at Exit

Growth Trajectory

Complement Your 401(k) With a Roth IRA

Frequently Asked Questions