401(k) Calculator 2026 — Growth, Employer Match & Withdrawal
Project your 401(k) balance at retirement, maximize your employer match, or calculate early withdrawal costs. Updated with 2026 IRS contribution limits and SECURE 2.0 Act catch-up provisions for all ages. Free calculator for all 50 states.
401(k) Calculator
Project your retirement balance, maximize your employer match, or calculate early withdrawal costs. Includes 2026 IRS limits and SECURE 2.0 Act catch-up provisions.
This calculator provides estimates for educational purposes only. Actual 401(k) returns depend on market performance, fund selection, fee structures, and individual circumstances. Projections assume consistent annual returns and do not account for market volatility, inflation on purchasing power, or changes in tax law.
2026 IRS contribution limits: $24,500 (under 50), $32,500 (age 50+), $35,750 (age 60-63, SECURE 2.0 Act super catch-up). Combined employee + employer limit: $72,000. These limits are subject to annual adjustment by the IRS.
This tool does not constitute investment, tax, or legal advice. For personalized retirement planning guidance, consult a qualified financial advisor or tax professional.
How Much Can I Contribute to My 401(k) in 2026?
The IRS sets annual contribution limits for 401(k) plans that adjust each year based on cost-of-living increases. For 2026, the limits are:
Under age 50: $24,500 per year (employee elective deferral limit). This is the maximum amount you can contribute from your salary before taxes.
Age 50 to 59: $32,500 per year ($24,500 base + $8,000 catch-up contribution). The catch-up provision allows older workers closer to retirement to save more aggressively.
Age 60 to 63: $35,750 per year ($24,500 base + $11,250 super catch-up). This enhanced catch-up was introduced by the SECURE 2.0 Act of 2022 and first took effect in 2025. It recognizes that workers in their early 60s have the fewest years remaining to save and may need to make up for earlier periods of lower contributions.
Age 64 and older: $32,500 per year (regular catch-up resumes at $8,000 above the base). The super catch-up provision applies only to ages 60 through 63.
Combined employee + employer maximum: $72,000 per year (or 100% of compensation, whichever is less). Employer matching contributions do not count toward your individual $24,500 limit but do count toward this combined cap.
Important change for 2026: Under SECURE 2.0, employees aged 50 and older who earned more than $150,000 in FICA wages in the prior year must make catch-up contributions on a Roth (after-tax) basis. This means catch-up contributions for higher earners go into a Roth 401(k) account, where withdrawals in retirement will be tax-free.
401(k) Contribution Limits History (2020–2026)
| 401(k) Contribution Limits History (2020–2026) | ||||
| Year | Under 50 | Age 50–59 Catch-Up | Age 60–63 Super Catch-Up | Combined Max |
|---|---|---|---|---|
| 2026 | $24,500 | $32,500 (+$8,000) | $35,750 (+$11,250) | $72,000 |
| 2025 | $23,500 | $31,000 (+$7,500) | $34,750 (+$11,250) | $70,000 |
| 2024 | $23,000 | $30,500 (+$7,500) | N/A | $69,000 |
| 2023 | $22,500 | $30,000 (+$7,500) | N/A | $66,000 |
| 2022 | $20,500 | $27,000 (+$6,500) | N/A | $61,000 |
| 2021 | $19,500 | $26,000 (+$6,500) | N/A | $58,000 |
| 2020 | $19,500 | $26,000 (+$6,500) | N/A | $57,000 |
| Source: IRS — 401(k) limit increases to $24,500 for 2026, IRS Notice 2025-23 | ||||
How Does a 401(k) Employer Match Work?
An employer match is additional money your employer contributes to your 401(k) based on how much you contribute. It is effectively free money added to your retirement savings. The most common employer match formulas are:
100% match on the first 3%, plus 50% on the next 2%. If you earn $75,000 and contribute 5% ($3,750), your employer contributes $75,000 × 3% × 100% + $75,000 × 2% × 50% = $2,250 + $750 = $3,000. Total going into your account: $6,750 per year.
50% match up to 6% of salary. If you earn $75,000 and contribute 6% ($4,500), your employer adds 50% of that = $2,250. If you only contribute 4% ($3,000), your employer adds $1,500 — and you leave $750/year on the table.
Dollar-for-dollar match up to 4% of salary. If you earn $75,000 and contribute 4% ($3,000), your employer matches $3,000. Contributing less than 4% means you are giving up free money.
The key principle: always contribute at least enough to capture the full employer match. Contributing less is equivalent to declining part of your compensation.
According to Fidelity’s 2025 data, the average total savings rate (employee + employer contributions) reached 14.2% — close to the recommended target of 15%. The average employee contribution was $9,080 per year.
How Much Should I Have in My 401(k) by Age?
Fidelity recommends saving a multiple of your annual salary by each decade milestone. The table below compares these targets with actual average and median 401(k) balances reported by Vanguard (2024 data, the most recent available) and Empower (2025 data):
| Age Group | Fidelity Target | Average Balance (Vanguard) | Median Balance (Vanguard) | Average Balance (Empower) |
|---|---|---|---|---|
| 20–29 | 1× salary by 30 | $16,560 | $7,256 | $116,872 |
| 30–39 | 3× salary by 40 | $60,586 | $22,512 | $212,356 |
| 40–49 | 6× salary by 50 | $116,422 | $40,243 | $394,470 |
| 50–59 | 8× salary by 60 | $196,098 | $57,660 | $629,000 |
| 60–69 | 10× salary by 67 | $221,588 | $63,254 | — |
Note: Vanguard data reflects all plan participants; Empower data includes larger balances from its client base. Median balances (Vanguard) provide a more realistic picture of where the typical saver stands. The gap between average and median reflects that a small number of large accounts pull the average significantly higher.
The overall average 401(k) balance across all ages is $134,128 (Vanguard) to $340,364 (Empower), depending on the data source and client base measured.
How Is a 401(k) Taxed?
Traditional 401(k): Contributions are made with pre-tax dollars, reducing your taxable income in the year of contribution. Investment growth is tax-deferred. Withdrawals in retirement are taxed as ordinary income at your marginal tax rate.
Roth 401(k): Contributions are made with after-tax dollars — no tax deduction in the contribution year. Investment growth is tax-free. Qualified withdrawals in retirement (after age 59½ and at least 5 years after the first Roth contribution) are completely tax-free.
Which is better? If you expect to be in a lower tax bracket in retirement than you are now, a traditional 401(k) may save you more in taxes over your lifetime. If you expect to be in the same or higher bracket — or if you want tax-free income in retirement — a Roth 401(k) may be more advantageous. Many financial planners recommend splitting contributions between both for tax diversification.
For a detailed comparison, see our Roth 401(k) vs. Traditional 401(k) guide.
401(k) Early Withdrawal Rules and Penalties
Withdrawing money from a 401(k) before age 59½ triggers two costs: the withdrawal is taxed as ordinary income at your federal and state tax rate, and an additional 10% early withdrawal penalty applies in most cases.
For example, withdrawing $50,000 at age 40 from a traditional 401(k) with a 22% federal tax rate and 6% state tax rate results in: $11,000 federal tax + $3,000 state tax + $5,000 penalty = $19,000 in total deductions. You receive $31,000 — just 62% of the original amount.
Beyond the immediate tax and penalty cost, there is an opportunity cost: that $50,000, if left invested at 7% annual return, would grow to approximately $374,000 by age 65. The true cost of an early withdrawal is the taxes paid plus the lost decades of compound growth.
Penalty Exceptions
The 10% early withdrawal penalty does not apply in the following situations: separation from service at age 55 or older (the “Rule of 55”), qualifying disability as defined by the IRS, substantially equal periodic payments under IRS Rule 72(t), qualified domestic relations order (QDRO) in a divorce, unreimbursed medical expenses exceeding 7.5% of AGI, IRS levy against the account, qualified birth or adoption distribution (up to $5,000 per event), terminal illness, and distributions to a beneficiary after the account holder’s death.
For complete withdrawal rules, penalties, and strategies, see our 401(k) Withdrawal Rules guide.
What Happens to Your 401(k) When You Leave Your Job?
This is where employment law intersects directly with your 401(k) savings. When you leave an employer — whether by resignation, layoff, or termination — your options depend on vesting and plan rules:
Your own contributions are always 100% vested. Every dollar you contributed from your salary belongs to you regardless of when or why you leave.
Employer match contributions may be subject to a vesting schedule that depends on your plan. Common vesting structures include immediate vesting (common in safe harbor plans), 3-year cliff vesting (0% vested until year 3, then 100%), and 6-year graded vesting (20% per year starting in year 2). If you leave before being fully vested, you forfeit the unvested portion of employer contributions.
Your options when leaving an employer: leave the balance in the former employer’s plan (if permitted), roll over to the new employer’s 401(k) plan, roll over to an Individual Retirement Account (IRA), or cash out (subject to taxes and potential 10% penalty if under 59½). A direct rollover to an IRA or new employer plan avoids taxes and penalties entirely.
If you are laid off: Your 401(k) rights are the same as for any separation. However, if the layoff is part of a mass layoff, the WARN Act may entitle you to 60 days of back pay and benefits. Your severance package may also include enhanced vesting or additional employer contributions as a negotiated benefit.
For related resources: Severance Pay Calculator | How to Negotiate a Severance Package | Final Paycheck Laws by State
401(k) vs. IRA: Key Differences
| 401(k) vs. IRA: Key Differences | ||
| Feature | 401(k) | IRA |
|---|---|---|
| 2026 Contribution Limit | $24,500 (under 50) | $7,500 (under 50) |
| Catch-Up (50+) | $8,000 | $1,100 |
| Super Catch-Up (60–63) | $11,250 | N/A |
| Employer Match | Yes | No |
| Investment Options | Limited to plan offerings | Broad (stocks, bonds, ETFs, mutual funds) |
| Income Limits (Roth) | None | $153,000 single / $242,000 MFJ (2026) |
| Availability | Through employer only | Anyone with earned income |
| Loan Option | Yes (plan-dependent) | No |
| Required Minimum Distributions | Yes, at age 73 (Roth 401k: starting 2024, no RMDs) | Yes for Traditional; No for Roth IRA |
For most employees, the optimal strategy is to contribute to the 401(k) at least up to the employer match, then consider an IRA for additional tax-advantaged savings, then return to the 401(k) to contribute more if possible. For a full comparison, see 401(k) vs. IRA.
Frequently Asked Questions
How much should I contribute to my 401(k)?
Financial advisors generally recommend contributing 10% to 15% of your pre-tax income to retirement savings, including any employer match. Fidelity’s data shows the average total savings rate has reached 14.2% in 2025 (employee + employer combined). At minimum, contribute enough to capture your full employer match — contributing less means declining free compensation. If 15% is not feasible now, start with whatever you can and increase by 1-2% each year.
How is my 401(k) employer match calculated?
The most common formula is a percentage match up to a salary limit. For example, “50% match on the first 6% of salary” means if you contribute 6% of your $80,000 salary ($4,800), your employer adds 50% of that ($2,400). If you only contribute 3% ($2,400), your employer adds $1,200 — and you leave $1,200 per year of free money uncaptured. Use the Match Maximizer tab in our calculator to see exactly how much you may be leaving on the table.
What is the SECURE 2.0 Act super catch-up?
The SECURE 2.0 Act of 2022 introduced a higher catch-up contribution limit for 401(k) participants aged 60 to 63. Instead of the standard $8,000 catch-up (age 50+), workers aged 60-63 can contribute up to $11,250 above the base limit, for a total of $35,750 in 2026. This provision applies only to ages 60 through 63 — at 64, the regular $8,000 catch-up resumes. The super catch-up helps workers in their peak earning years save more aggressively before retirement.
How much should I have in my 401(k) at 30? At 40? At 50?
Fidelity recommends these salary multiples as benchmarks: 1× your annual salary by age 30, 3× by age 40, 6× by age 50, 8× by age 60, and 10× by age 67. For example, if you earn $75,000 at age 40, you should aim to have approximately $225,000 saved. The actual median 401(k) balance for people in their 40s is $40,243 (Vanguard data), which shows that many Americans are behind these targets. Starting or increasing contributions at any age is better than not contributing at all.
What happens to my 401(k) if I get laid off?
Your own contributions are always yours. Employer match contributions depend on your vesting schedule — if you are not fully vested, you may forfeit the unvested portion. After separation, you can leave the money in the old plan, roll it over to a new employer’s 401(k) or an IRA (recommended), or cash out (not recommended due to taxes and penalties). If the layoff triggers the WARN Act, you may be entitled to additional back pay.
Is a Roth 401(k) better than a traditional 401(k)?
It depends on your tax situation now versus in retirement. A traditional 401(k) gives you a tax deduction today but you pay taxes on withdrawals. A Roth 401(k) uses after-tax dollars but withdrawals are tax-free. If you expect to be in a higher tax bracket in retirement (or if tax rates rise), Roth may be better. Many advisors recommend splitting contributions between both for tax diversification. Starting in 2024, Roth 401(k)s no longer require minimum distributions during the account holder’s lifetime.
Can I withdraw from my 401(k) without penalty?
After age 59½, you can withdraw without the 10% penalty (though income tax still applies to traditional 401(k) withdrawals). Before 59½, the penalty applies unless you qualify for an exception: Rule of 55 (separation from employer at 55+), disability, 72(t) equal payments, QDRO, qualified birth/adoption ($5,000), terminal illness, or certain other IRS-specified situations. The SECURE 2.0 Act added several new penalty-free withdrawal provisions starting in 2024, including emergency personal expense withdrawals (up to $1,000/year) and domestic abuse victim withdrawals.
What is the average 401(k) rate of return?
The average annual return depends on your investment mix. The S&P 500 has returned approximately 10% annually over the long term (before fees and inflation). A balanced portfolio of 60% stocks and 40% bonds has historically returned approximately 7-8% annually. Our calculator uses 7% as the default, which accounts for a diversified portfolio after typical fees. Actual returns vary significantly year to year based on market conditions.
Can I contribute to both a 401(k) and an IRA?
Yes. The 401(k) and IRA have separate contribution limits. In 2026, you can contribute up to $24,500 to a 401(k) and up to $7,500 to an IRA ($8,600 if 50+). However, if you have a 401(k) at work, the tax deductibility of traditional IRA contributions may be limited based on your income. Roth IRA contributions have income limits: $153,000 MAGI for single filers, $242,000 for married filing jointly in 2026.
Related Resources on RemoteLaws
- Complete 401(k) Guide (2026) — Everything employees need to know about 401(k) plans, from enrollment to retirement.
- Roth 401(k) vs. Traditional 401(k) — Tax implications, contribution rules, and which is better for your situation.
- 401(k) Withdrawal Rules & Penalties — Complete guide to distributions, RMDs, early withdrawal penalties, and exceptions.
- 401(k) vs. IRA — How the two retirement accounts compare and when to use each.
- Severance Pay Calculator — Estimate your severance package and understand how it affects your 401(k).
- Unemployment Benefits Calculator — If you’ve been laid off, estimate your weekly unemployment benefits.
- Salary to Hourly Calculator — Convert your salary to hourly rate for 401(k) contribution planning.
- FMLA Eligibility Checker — Check if you qualify for job-protected leave.