A 401(k) is a workplace retirement account. You choose a percentage of each paycheck to invest, often before tax, and many employers add a match on top. Over decades, steady contributions and compound growth do most of the work.
Here are the 2026 limits, how matching works, and an example of how the numbers add up.
2026 contribution limits
| Your age in 2026 | Most you can contribute |
|---|---|
| Under 50 | $24,500 |
| 50 to 59, or 64 and older | $32,500 ($24,500 + $8,000 catch-up) |
| 60 to 63 | $35,750 ($24,500 + $11,250 catch-up) |
How an employer match works
A common match is "50% on up to 6%": your employer adds 50 cents for every dollar you put in, on contributions up to 6% of your salary.
Example: $75,000 salary, 50% match on up to 6%
Contribute 6% ($4,500) and your employer adds $2,250.
Contribute 10% ($7,500) and your employer still adds $2,250, because the match stops at 6%.
Contribute 3% ($2,250) and you get only $1,125: you'd leave $1,125 a year on the table.
Traditional or Roth?
- Traditional: contributions lower your taxable income now; withdrawals in retirement are taxed as income.
- Roth: contributions are taxed now; qualified withdrawals in retirement are tax-free.
- Both share the same yearly limit, and many plans let you split between them.
The US paycheck calculator shows how a traditional contribution changes your take-home pay.
What the projection assumes
- A steady yearly return, compounded monthly. Real returns rise and fall, and aren't guaranteed.
- Contributions capped at the 2026 limits for your age each year. Limits usually rise with inflation, so this is cautious.
- Vesting schedules, fees and loans from the plan aren't included.
How to use this calculator
- Enter your salary, age and current 401(k) balance.
- Enter the percentage of salary you contribute.
- Enter your employer's match, for example 50% on up to 6% of salary.
- Adjust the expected raise and return if you want.
FAQs
What is the 401(k) limit for 2026?
$24,500 of your own contributions. From age 50 you can add $8,000 more ($32,500 in total), and at ages 60 to 63 the extra is $11,250 ($35,750 in total).
Does the employer match count toward my limit?
No. The $24,500 limit is for your own contributions. Employer money counts only toward a much higher overall limit of $72,000 in 2026.
How much should I contribute?
At least enough to get the full employer match, since that's an instant return on your money. Many people aim for 10–15% of pay in total.
Traditional or Roth 401(k)?
Traditional contributions lower your tax now and are taxed when you withdraw; Roth contributions are taxed now and grow tax-free. Both share the same yearly limit.
Sources
- IRS: 401(k) limit increases to $24,500 for 2026
- IRS: 401(k) and profit-sharing plan contribution limits
Results are estimates and aren't tax, legal or financial advice. For your own return, check with a CPA or enrolled agent. Spotted a mistake? Tell us.