How the projection works
Each year your salary grows by the raise you entered. You contribute your chosen percentage, capped at the IRS limit for your age that year; your employer matches its percentage of your contribution up to the match limit. Contributions go in monthly and grow at the annual return, compounded monthly.
2026 contribution limits
| Your age in 2026 | Employee limit | Includes catch-up of |
|---|---|---|
| Under 50 | $24,500 | — |
| 50–59, or 64 and older | $32,500 | $8,000 |
| 60–63 | $35,750 | $11,250 |
Starting in 2026, if you earned more than $150,000 in FICA wages from your employer the year before, catch-up contributions must go in as Roth. The projection keeps future limits at 2026 levels; in practice the IRS raises them with inflation, so later-year limits are conservative.
Getting the most out of the plan
- Contribute at least up to the match. It is an immediate return on your money that no investment reliably beats.
- Raise your rate with each raise. Adding 1% a year is barely noticeable in your paycheck and compounds for decades.
- Check the fees. A fund charging 1% a year instead of 0.1% can cost a six-figure sum over a career.
To see how contributions change your take-home pay, use the paycheck calculator. To check whether the total supports the income you want in retirement, use the retirement savings calculator.
Common questions
How does an employer match work?
The employer adds a percentage of what you contribute, up to a cap measured as a share of your salary. With a 50% match up to 6%, contributing 6% of an $80,000 salary ($4,800) brings in $2,400 from your employer. Contributing less than the cap leaves part of that money unclaimed.
What is the 401(k) contribution limit for 2026?
You can defer up to $24,500 in 2026. From age 50 you can add a $8,000 catch-up ($32,500 total), and in the years you turn 60 through 63 the catch-up rises to $11,250 ($35,750 total). Employer contributions do not count toward your limit, but the combined total is capped at $72,000 plus catch-ups.
Is employer match money mine right away?
Your own contributions always are. Employer contributions may follow a vesting schedule — for example, 20% per year over five years — so leaving the job early can mean forfeiting part of the match. Your plan’s summary plan description lists the schedule.
Should I choose traditional or Roth 401(k) contributions?
Traditional contributions lower your taxable income now and are taxed when withdrawn; Roth contributions are taxed now and come out tax-free in retirement. If you expect a higher tax rate later, Roth tends to win; if lower, traditional. Many people split between the two.
Sources
- IRS — 401(k) limit increases to $24,500 for 2026
- IRS Notice 2025-67 — 2026 retirement plan limits (PDF)
- IRS — Retirement topics: 401(k) and profit-sharing plan contribution limits
Results are estimates for educational use and are not financial, tax or legal advice. Confirm figures with your lender, plan administrator or a tax professional before you act. Spotted an error? Tell us.