🏦Updated with 2026 IRS Contribution Limits

401(k) Calculator

Project your retirement nest egg balance with employee salary deferrals, employer match formulas, SECURE 2.0 catch-up limits, and compound interest growth.

Retirement Timeline & Contributions

Input your age horizon, savings rate, and employer matching parameters.

Company Matching Formula

Projected Balance at Age 65
$1,992,301
Estimated Total Nest Egg
Your Deferrals (to retirement):$252,000
Employer Match (to retirement):$89,250
Investment Growth Earned:$1,626,051
Employee deferrals are capped at the 2026 IRS limit of $24,500 ($32,500 for age 50+, $35,750 for age 60–63).

The employer match is the part that matters

A 401(k) grows from three inputs: what you contribute, what your employer adds, and what the balance earns. Of the three, the match is the only one offering a guaranteed immediate return. A typical arrangement — the employer matching 50% of contributions up to 6% of salary — pays 50 cents on every dollar the moment it lands. No investment reliably returns 50% in a year. Contributing less than the full match is the one clearly avoidable mistake in retirement saving.

Vesting decides whether that money is actually yours. Your own contributions always are, but employer money often vests on a schedule — commonly graded over three to five years, or all at once via a cliff. Leaving before you vest forfeits the unvested portion, which is worth checking against the timing of a job move.

Frequently asked questions

What are the 401(k) contribution limits for 2026?

For 2026, the standard employee elective deferral limit is $24,500. Savers aged 50 to 59 and 64+ can make an additional $8,000 catch-up contribution ($32,500 total). Under the SECURE 2.0 Act, workers aged 60, 61, 62, and 63 qualify for a 'super catch-up' limit of $11,250 ($35,750 total). Employer match contributions do not count toward these employee limits.

How does employer 401(k) matching work?

Employer matching is free retirement money contributed by your company based on your salary deferrals. For example, a 50% match up to 6% of your salary means if you earn $80,000 and contribute 6% ($4,800), your employer contributes an additional 3% ($2,400) directly into your account.

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

You can withdraw funds penalty-free once you reach age 59½. If you leave your job in or after the year you turn 55, the IRS 'Rule of 55' allows penalty-free 401(k) withdrawals from that specific employer plan. Required Minimum Distributions (RMDs) currently begin at age 73.

Is a traditional 401(k) better than a Roth 401(k)?

A traditional 401(k) uses pre-tax dollars, lowering your current taxable income, with taxes deferred until retirement. A Roth 401(k) uses after-tax dollars, allowing all future withdrawals in retirement to be 100% tax-free. Generally, if you expect your tax bracket to be higher in retirement, Roth is preferred; if you expect it to be lower, traditional is preferred.

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