401(k) Retirement Calculator
Project your balance, compare Roth vs Traditional, and find out if you’re on track — using official 2026 IRS contribution limits.
| Component | Amount | % of Total |
|---|
*What the withdrawn amount would have grown to by your planned retirement.
- 401(k) Loan: Borrow up to 50% of your vested balance (maximum $50,000). You repay yourself with interest — no penalty, no permanent loss of growth, no tax if repaid on time.
- Hardship Withdrawal: For immediate and heavy financial need (medical, foreclosure, funeral expenses). Taxes apply but the 10% penalty may be waived depending on the reason.
- 72(t) SEPP: Substantially Equal Periodic Payments under IRS Rule 72(t) allow penalty-free withdrawals before 59½ — but require continued equal payments for 5 years or until age 59½, whichever is longer.
- Roth IRA Contributions: If you have a Roth IRA, your contributions (not earnings) can be withdrawn penalty- and tax-free at any time.
- HELOC or Personal Loan: For homeowners, a HELOC may offer a lower effective cost than an early 401(k) withdrawal.
If your contribution % is too high, you’ll hit the 2026 IRS cap partway through the year. Once you hit the cap, your contributions stop — and so does your employer’s match for the remaining pay periods.
How to Use This 401(k) Retirement Calculator
Our free 401(k) retirement calculator helps you project your balance at retirement using your actual salary, contribution rate, employer match, and expected investment returns. Unlike basic calculators, this tool adjusts for inflation so you can see your future savings in today’s purchasing power — a crucial detail most calculators omit. It also applies the correct 2026 IRS contribution limits automatically based on your age.
The Core Advantages of a 401(k)
Before the mechanics, it’s worth being clear on why a 401(k) is usually the first place to put retirement savings, ahead of a regular brokerage account:
- Tax-deferred or tax-free growth: Traditional contributions lower your taxable income today; Roth contributions grow completely tax-free.
- Employer match: Often a 50–100% instant return on your own contribution — no investment anywhere else offers that.
- Higher limits than an IRA: The $24,500 (or $32,500–$35,750 with catch-up) 401(k) limit dwarfs the $7,500 IRA limit for 2026.
- Automatic, painless saving: Contributions come out of your paycheck before you see the money.
- Creditor protection: 401(k) balances generally have strong protection from creditors in bankruptcy under ERISA, unlike many other asset types.
Step-by-Step Instructions
- Enter your current age and target retirement age. The gap between these determines how many years of compound growth you have.
- Enter your annual salary and current 401(k) balance. If you’re just starting out, use $0 for the balance. Note: the IRS caps considered compensation at $360,000 for 2026.
- Set your contribution percentage. The calculator automatically caps your contribution at the IRS limit for your age group ($24,500 / $32,500 / $35,750).
- Add your employer match. Enter the match rate (e.g., 100% for dollar‑for‑dollar) and the cap (e.g., 3% of salary) — this is what a “401(k) calculator with match” needs to get right, and it’s built in automatically here. If your employer matches 50% up to 6%, enter 50% and 6%.
- Set your expected return and inflation rate. A 7% nominal return and 2.9% inflation are historically reasonable defaults.
- Select Traditional or Roth 401(k) (or “Compare Both”) to see the after-tax impact of your choice. The calculator uses progressive tax brackets for a realistic estimate.
- Click Calculate to see your full projection, including monthly retirement income, compound growth breakdown, and your on-track score.
2026 IRS 401(k) Contribution Limits
The IRS adjusts 401(k) contribution limits annually for inflation under IRC §415. For 2026, the limits were announced in IRS IR-2025-111 (November 13, 2025), with full details in Notice 2025-67. Critical note: if your contribution rate causes you to hit the IRS cap before December, your employer may stop matching for the rest of the year. Use the Maximize Match tab to avoid this.
| Age Group | Employee Elective Limit | Catch-Up Contribution | Employee Total | Combined Employer + Employee Total |
|---|---|---|---|---|
| Under 50 | $24,500 | — | $24,500 | $72,000 |
| Age 50–59 & Age 64+ (standard catch-up) | $24,500 | +$8,000 | $32,500 | $80,000 |
| Age 60–63 (SECURE 2.0 Super Catch-Up) | $24,500 | +$11,250 | $35,750 | $83,250 |
Notes: (1) The combined employer + employee limit includes all contributions: elective deferrals, catch-up contributions, employer match, and profit-sharing. (2) Total compensation considered is capped at $360,000 for 2026. (3) The IRA contribution limit for 2026 is $7,500 ($8,600 if age 50+, including the $1,100 catch-up — increased from $1,000 in 2025), separate from your 401(k) limit.
The SECURE 2.0 Act (signed December 2022) introduced the “super catch-up” for savers aged 60–63. If you are in this age window, you can contribute $11,250 extra above the base $24,500 — significantly more than the standard $8,000 catch-up available to those 50–59 and 64+. This window only applies for the four tax years in which you are 60, 61, 62, or 63.
Is a 401(k) the Same as a 403(b)?
Not quite, though they’re close cousins. A 403(b) plan is the equivalent retirement account offered by public schools, hospitals, and 501(c)(3) nonprofits, rather than for-profit employers. The employee elective deferral limits are set under the same IRC §402(g) rule as a 401(k), so the 2026 numbers are identical: $24,500 base, $32,500 with the standard catch-up, $35,750 with the SECURE 2.0 super catch-up. The differences are mostly structural: 403(b) plans historically restrict investment options to annuity contracts and mutual funds rather than a full brokerage-style lineup, and some 403(b) plans offer employees with 15+ years of service at a qualifying organization an additional special catch-up — worth up to an extra $3,000 per year, subject to a $15,000 lifetime cap — on top of the standard age-based catch-up. If your plan is a 403(b) rather than a 401(k), the contribution and growth math on this page still applies; just check your own plan document for the 15-year rule and investment menu.
Traditional 401(k) vs. Roth 401(k): Which Is Right for You?
The most important 401(k) decision most people never make consciously. The difference isn’t just about taxes — it’s about when you pay them and what rate you pay. Both account types share identical contribution limits for 2026.
| Feature | Traditional 401(k) | Roth 401(k) |
|---|---|---|
| Contributions | Pre-tax — reduces your taxable income today | After-tax — no current tax deduction |
| Withdrawals in Retirement | Taxed as ordinary income | 100% tax-free (qualified distributions) |
| Best If… | Your tax rate is higher now than in retirement | Your tax rate is lower now than in retirement |
| Required Minimum Distributions (RMDs) | Yes — starting at age 73 (age 75 by 2033 per SECURE 2.0) | No RMDs during owner’s lifetime (as of 2024, per SECURE 2.0) |
| 2026 Contribution Limit | Identical: $24,500 / $32,500 / $35,750 (shared across both types) | |
| Early Withdrawal (before 59½) | Taxes + 10% penalty on full amount withdrawn | Taxes + penalty on earnings only; contributions always tax-free |
| High Earner Catch-Up (2026) | Not available if prior-year wages > $150,000 | Required for high earners — catch-up must be Roth if wages > $150,000 |
Simple Rule of Thumb
- You’re in the 22% bracket or below now and expect to be in a higher bracket in retirement → Choose Roth
- You’re in the 32% bracket or above now and expect a lower tax rate in retirement → Choose Traditional
- You’re unsure? Split contributions — many plans allow you to allocate a percentage to each. This “tax diversification” strategy hedges against future tax rate uncertainty.
- Your wages exceed $150,000? In 2026, your catch-up contributions must be Roth regardless of preference — plan accordingly.
A Third Option: After-Tax 401(k) Contributions (“Mega Backdoor Roth”)
Beyond Traditional and Roth, some employer plans offer a third, less-publicized contribution type: after-tax contributions. These aren’t the same as Roth — Roth is capped at the standard $24,500 / $32,500 / $35,750 employee limits, while after-tax contributions can go on top of that, all the way up to the combined $72,000 / $80,000 / $83,250 IRC §415(c) ceiling shown in the table above. Many plans that allow after-tax contributions also allow an in-plan Roth conversion or in-service rollover of those dollars — a strategy commonly called the “mega backdoor Roth.” Done correctly, it lets a high earner shelter far more in Roth-style, tax-free growth than the standard Roth 401(k) or Roth IRA limits would otherwise allow. Not every plan supports after-tax contributions or in-plan conversions — check your Summary Plan Description or ask your plan administrator whether the feature exists before assuming it does.
401(k) vs. Pension: What’s the Real Difference?
A traditional pension (a defined-benefit plan) guarantees a fixed payout in retirement, calculated from a formula based on your salary and years of service — your employer bears the investment risk and is on the hook for the promised amount regardless of how markets perform. A 401(k) (a defined-contribution plan) works the opposite way: your eventual balance depends entirely on how much you and your employer contributed and how your investments performed, and you carry the investment risk. Pensions have become rare outside government and some union jobs; the trade-off is that a 401(k) gives you more control and portability between employers, but no guaranteed floor.
Am I On Track? 401(k) Savings Benchmarks by Age
Fidelity Investments’ widely used benchmarks suggest the following savings targets relative to your current salary. These assume you want to replace approximately 80% of your pre-retirement income, with Social Security supplementing the rest.
| Age | Savings Target (× Salary) | Example: $75K Salary | Status if Below & Action |
|---|---|---|---|
| 30 | 1× salary | $75,000 | Behind — Increase contributions immediately |
| 35 | 2× salary | $150,000 | Behind — Aim for at least $24,500/yr |
| 40 | 3× salary | $225,000 | Behind — Max match + consider Roth IRA ($7,500) |
| 45 | 4× salary | $300,000 | Behind — Prepare for age-50 catch-up contributions |
| 50 | 6× salary | $450,000 | Use $32,500 limit (incl. $8,000 catch-up) |
| 55 | 7× salary | $525,000 | On Track — Maintain $32,500 limit |
| 60 | 8× salary | $600,000 | Use $35,750 Super Catch-Up (age 60–63 only) |
| 64 | 9× salary | $675,000 | Revert to $32,500 limit at age 64 |
| 67 | 10× salary | $750,000 | Retirement Ready |
How Long Will My Retirement Savings Last?
This calculator’s “Est. Monthly Income” figure, in the Balance Projector tab, is built on the 4% rule — a guideline that comes from the Trinity Study, which tested historical U.S. market returns to find a withdrawal rate that survived roughly 30 years across nearly every historical period, including bad ones. Withdrawing 4% of your starting balance each year, adjusted for inflation, is the classic version of the rule.
The 4% figure is deliberately conservative, precisely because market returns vary year to year — a bad sequence of returns early in retirement can deplete a portfolio much faster than the same average return spread evenly. To illustrate how sensitive “how long will my money last” really is to the withdrawal rate, here’s a simplified model of a $750,000 balance under a constant 5% real (after-inflation) annual return:
| Annual Withdrawal Rate | Annual Withdrawal | How Long It Lasts |
|---|---|---|
| 3–4% | $22,500 – $30,000 | Indefinitely — withdrawal stays below the assumed real return |
| 5% | $37,500 | Indefinitely — withdrawal roughly matches the real return |
| 6% | $45,000 | ~37 years |
| 8% | $60,000 | ~20 years |
| 10% | $75,000 | ~14 years |
Important caveat: this table assumes a flat 5% real return every single year, which real markets never deliver — some years are sharply negative, some are far above average. That volatility, not just the average return, is exactly why the Trinity Study’s more rigorous historical-sequence testing arrives at a more conservative ~4% figure than this simplified constant-return math would suggest. Treat the table above as intuition for how withdrawal rate and portfolio longevity relate, not as a substitute for stress-testing your own plan against historical market sequences or a financial planner’s Monte Carlo analysis.
How Employer Matching Works — And Why It’s the Best Investment Available
Employer matching is one of the most powerful wealth-building tools available to American workers — yet Vanguard’s How America Saves 2024 report found approximately 27% of eligible employees don’t contribute enough to capture their full employer match.
Common Match Formulas
- 100% match up to 3% of salary: Earn $70K, contribute 3% ($2,100) → employer adds $2,100. Minimum you should contribute: 3%.
- 50% match up to 6% of salary: Earn $70K, contribute 6% ($4,200) → employer adds $2,100. You need to contribute 6% to get the same $2,100 match.
- Dollar-for-dollar up to $3,000: Flat dollar cap regardless of salary. Contribute at least whatever amount maximizes this.
Vesting Schedules: What Happens If You Leave
Your own contributions are always 100% yours immediately. But employer match contributions are often subject to a vesting schedule:
- Cliff Vesting: 0% until year 3, then 100% immediately (most common under ERISA minimum standards)
- Graded Vesting: 20% per year from years 2–6 (fully vested at year 6)
- Immediate Vesting: 100% from day one (rare; more common at large employers and government plans)
The Real Cost of Early 401(k) Withdrawal
Withdrawing from your 401(k) before age 59½ triggers two simultaneous costs: a 10% federal early withdrawal penalty plus ordinary income tax on the taxable portion. For a Traditional account, the entire amount is taxable. For a Roth account, only earnings are taxable; contributions always come out tax‑free. Our calculator now handles both account types, so you can see the exact impact.
IRS-recognized exceptions to the 10% penalty include: total and permanent disability, death of account owner, qualifying domestic relations orders (QDRO), medical expenses exceeding 7.5% of AGI, health insurance premiums while unemployed, Rule of 55 (left employer at or after age 55), and Substantially Equal Periodic Payments (IRS 72(t)).
What Happens to Your 401(k) When You Change Jobs?
You have four options when you leave an employer:
- Direct rollover to new employer’s 401(k). Maintains tax-deferred status; check the new plan’s investment options and fees first.
- Direct rollover to a Traditional IRA. Usually the best option — broader investment choices, potentially lower fees, no mandatory cash-out provisions.
- Leave it with your former employer. Legal if balance exceeds $5,000. You lose the ability to make new contributions.
- Cash out. Almost always the worst option — taxes + 10% penalty + permanent loss of compound growth. Avoid unless a genuine financial emergency with no alternatives.
Always use a direct rollover (trustee-to-trustee transfer), not an indirect rollover. With an indirect rollover, the plan withholds 20% for taxes and you have 60 days to replace the funds — a common source of costly mistakes.
Who Actually Runs Your 401(k)? The Role of a Plan Administrator
Every 401(k) plan has a plan administrator — usually your employer, a designated HR team, a benefits committee, or an outside third-party administrator (TPA) hired specifically for the role. The plan administrator is legally responsible under ERISA for running the plan according to its written terms: distributing the Summary Plan Description, processing loans and hardship withdrawals, handling enrollment and vesting records, and filing the plan’s annual Form 5500 with the Department of Labor and IRS. If you have a question your payslip or online portal can’t answer — like your exact vesting schedule or whether after-tax contributions are allowed — the plan administrator, not your day-to-day manager, is who to ask.
What This Calculator Assumes — And Why
- 7% expected annual return: Based on the historical S&P 500 average (~10% nominal) minus a ~3% adjustment for a diversified portfolio. A reasonable long-run estimate.
- 2.9% inflation rate: Based on the 10-year rolling average U.S. CPI-U as reported by the Bureau of Labor Statistics (BLS).
- 2% salary growth: Aligned with the Federal Reserve’s long-run nominal wage growth target from the Employment Cost Index (ECI).
- Life expectancy of 85: The Social Security Administration’s current estimate for Americans reaching age 65. Many financial planners recommend planning to age 90–95 to avoid outliving savings.
- Progressive tax modeling: Uses 2026 federal tax brackets (single or married filing jointly) on the annual withdrawal to estimate the effective tax rate. State taxes are not included; adjust your filing status to see the impact.
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