How much should I contribute to my 401(k)?
A sensible first target is to contribute at least enough to capture the full employer match, because failing to do that usually means leaving part of your compensation unclaimed. After that, many retirement-planning rules of thumb suggest saving around 10% to 15% of gross income for retirement across all accounts, including employer contributions. The right figure for you depends on your age, retirement target, existing savings, pension or Social Security expectations, and how much flexibility you have in your current budget.
Does employer match count toward the 401(k) employee contribution limit?
No. Employer match does not count toward the employee elective deferral limit. For 2026, that employee limit is $24,500 if you are under 50, $32,500 for many workers aged 50 and over, and $35,750 for eligible workers aged 60 to 63. Employer contributions do, however, count toward the broader annual additions limit that applies to combined employee and employer money.
What is the 2026 total annual contribution limit for a 401(k)?
For 2026, the annual additions limit is $72,000 before catch-up contributions. That combined limit covers employee deferrals, employer matching, and other employer contributions. Catch-up contributions for older workers sit on top of that amount when the rules allow them. The calculator uses that broader cap so high earners and generous-match scenarios do not project contributions that exceed the IRS framework.
What happens if I contribute more than the IRS limit?
If you exceed the annual deferral limit, the excess usually needs to be corrected promptly, often by distributing the excess contribution and any associated earnings before the tax filing deadline. Many payroll systems automatically stop salary deferrals when you hit the plan limit, but problems can still happen after a mid-year job change if you contribute to more than one employer plan in the same calendar year. The calculator is useful for planning, but payroll and plan administrators still control what is actually processed.
Does this calculator include Roth 401(k) tax treatment?
No. The balance math for traditional and Roth 401(k) accounts can look similar when you are only projecting contributions and investment growth, but the tax treatment is not the same. A traditional 401(k) usually lowers taxable wages today and is taxed when money is withdrawn. A Roth 401(k) is funded with after-tax contributions and can produce tax-free qualified withdrawals later. This calculator projects account growth only and does not calculate your current tax savings or your retirement tax bill.
Why does the calculator show a today's-dollars balance?
A nominal retirement balance can sound large without saying much about what that money may buy decades from now. The today's-dollars figure adjusts the future balance using your inflation assumption so you can compare it with current spending power. That does not make the future result more certain, but it often gives a more realistic planning anchor when you are thinking about retirement lifestyle rather than just account size.
How do plan fees affect a 401(k) projection?
Fees reduce the effective return that compounds over time. A difference of a few tenths of a percentage point each year can materially change the ending balance over a multi-decade career because the fee drag applies year after year to a growing account. This calculator subtracts the fee assumption from the growth projection and also reports estimated fees separately so you can see how much of the long-run difference comes from plan cost rather than from contribution behavior alone.
What if I am not contributing enough to get the full employer match?
That is one of the most valuable questions the calculator can answer. If your contribution rate is below the plan's matchable percentage, the page estimates how much of your own annual contribution would need to increase to unlock the full match and how much employer money may currently be missed. That is not a command to increase contributions at all costs, but it is a useful prompt because the employer match is often the highest-value first step in retirement saving.
Are employer matching contributions always fully mine right away?
Not necessarily. Your own salary-deferral contributions are always yours, but many plans apply vesting schedules to employer contributions. That means some or all of the employer match may be forfeited if you leave the company before you are fully vested. The calculator treats employer contributions as if they remain in the account and compound, so you should interpret the result more cautiously if your plan uses a multi-year vesting schedule and you are not sure how long you will stay with the employer.
What if I change jobs or stop contributing for a while?
Real retirement saving is rarely one smooth path from age 25 to age 65. Job changes, unemployment, career breaks, and contribution pauses can all change the outcome materially. This calculator assumes one continuous path using the current inputs, so the best way to use it after a job change is to rerun the numbers with the new salary, match formula, balance, and timeline rather than treating the previous projection as permanent.
Can I contribute to both a 401(k) and an IRA?
Yes. A 401(k) and an IRA are separate account types with separate contribution rules, although tax deductibility and Roth IRA eligibility can depend on income and workplace-plan coverage. Many savers use both: they contribute enough to the 401(k) to capture the match, then decide whether to keep increasing 401(k) deferrals, fund an IRA, or split savings across multiple retirement accounts depending on fees, investment choices, and tax strategy.
Does the calculator model early-withdrawal penalties, loans, or required minimum distributions?
No. The projection is accumulation-focused. It does not model 401(k) loans, hardship withdrawals, early-distribution penalties, rollover decisions, or required minimum distributions later in retirement. Those issues matter in real planning, especially close to retirement or after a job change, but they are separate questions from the core balance-growth estimate this tool is designed to provide.
What if my salary grows faster than the example assumes?
A faster salary increase can raise both your own deferrals and the salary base used for the match formula, which may materially change the projection. The calculator lets you raise the annual salary increase assumption so you can compare a conservative path with a more optimistic one.
