Updated for 2026 IRS Limits · IRS IR-2025-111
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.
$24,5002026 Base Limit (Under 50)
$32,500Age 50–59 & 64+ (incl. $8K catch-up)
$35,750Age 60–63 Super Catch-Up (SECURE 2.0)
$72,0002026 Total Combined Limit
Your 401(k) Balance Projector
Enter your details to see your projected retirement balance with 2026 IRS limits applied automatically
2026 SECURE 2.0 Act Updates: The IRS limit is $24,500 (under 50), $32,500 (age 50–59 & 64+), and $35,750 (age 60–63). New for 2026: if your prior-year Social Security wages exceeded $150,000, your catch-up contributions must be Roth (after-tax). Source: IRS IR-2025-111.
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Progressive tax brackets applied to your annual withdrawal (4% rule). Traditional taxed as income; Roth tax‑free.
Your Retirement Projection
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Projected Balance
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at retirement
Today’s Dollars
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inflation-adjusted
Est. Monthly Income
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4% rule drawdown
Your Contributions
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total over career
Employer Match
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free money earned
Investment Growth
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compound earnings
On-Track Meter (Goal: 10× salary at retirement)
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On Track (100%)
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2026 IRS Contribution Limit Applied: —
Balance Growth Over Time
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Disclaimer: This calculator provides estimates only. Results depend on assumed rates of return, which are not guaranteed.
2026 IRS 401(k) contribution limits (IRS IR-2025-111): Under age 50 — $24,500; Age 50–59 & 64+ — $32,500 (includes $8,000 catch-up); Age 60–63 — $35,750 (includes $11,250 SECURE 2.0 super catch-up). Combined employer + employee total: $72,000 (under 50), $80,000 (age 50–59 & 64+), $83,250 (age 60–63). Compensation considered is capped at $360,000. Consult a qualified financial advisor (CFP®) before making retirement planning decisions. Source: IRS.gov.
Early 401(k) Withdrawal Cost Calculator
Withdrawing before age 59½ triggers a 10% federal penalty plus income taxes on the taxable portion. See your true cost.
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Penalty & Tax Breakdown
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Federal Income Tax
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State Income Tax
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*What the withdrawn amount would have grown to by your planned retirement.
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💚 Consider These Alternatives First
- 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.
Employer Match Maximizer
Never leave free money on the table. Find the exact contribution % to maximize your employer match without hitting the IRS cap too early in the year.
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Match You’re Getting Now
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Optimal Contribution %
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instant return on contribution
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⚡ The IRS Cap Timing Warning
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.
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). 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.
🔑 New for 2026 — Mandatory Roth Catch-Up (SECURE 2.0 §603): If your prior-year Social Security wages with your employer exceeded $150,000 (indexed for inflation), all your catch-up contributions must be made as Roth (after-tax) contributions — you cannot make pre-tax catch-up contributions. This applies to 401(k), 403(b), and governmental 457(b) plans. This is a permanent rule change effective January 1, 2026. Source: IRS.gov Catch-Up Contributions.
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.
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.
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 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.
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.
Frequently Asked Questions
Per IRS IR-2025-111 / Notice 2025-67: Under age 50 — $24,500; Age 50–59 and 64+ — $32,500 (standard $24,500 + $8,000 catch-up); Age 60–63 — $35,750 (standard $24,500 + $11,250 SECURE 2.0 super catch-up). Combined employer + employee total: $72,000 (under 50), $80,000 (age 50–59 & 64+), $83,250 (age 60–63). The IRA contribution limit is separately $7,500 for 2026 ($8,600 if age 50+, including the $1,100 catch-up).
Fidelity’s benchmark suggests 6× your annual salary by age 50. On a $70,000 salary, that’s $420,000. However, this is a median target — your actual need depends on your retirement lifestyle, Social Security benefit, spouse’s income, and planned retirement age. Age 50 unlocks the $8,000 catch-up contribution above the base $24,500 IRS limit — use it immediately if you’re behind.
Yes — the 401(k) and Roth IRA contribution limits are completely separate. You can maximize both. For 2026, the Roth IRA contribution limit is $7,500 ($8,600 if age 50+, including the $1,100 IRA catch-up — increased from $1,000 in 2025). However, your ability to contribute to a Roth IRA is subject to income phase-outs: for 2026, the phase-out range is $153,000–$168,000 for single filers and heads of household, and $242,000–$252,000 for married filing jointly. Above these thresholds, you cannot contribute directly to a Roth IRA (though a “backdoor Roth” conversion strategy is available).
SECURE 2.0 (signed December 29, 2022) made several major changes relevant to 2026: (1) Super Catch-Up for ages 60–63: $11,250 extra above the base limit; (2) Mandatory Roth Catch-Up: If your prior-year Social Security wages exceeded $150,000, all catch-up contributions must now be Roth — no pretax option; (3) RMD age raised to 73 (rising to 75 by 2033); (4) No RMDs for Roth 401(k) during the owner’s lifetime (effective 2024); (5) Auto-enrollment required for new 401(k) plans started after December 29, 2022, beginning in 2025; (6) Student loan match: Employers can match employees’ qualified student loan payments as if they were 401(k) contributions.
Excess contributions above the IRS elective deferral limit are called “excess deferrals” (IRC §402(g)). You must withdraw them — plus any earnings — by April 15 of the following year, or you’ll pay taxes twice: once in the year contributed and again when distributed. Most large employers’ payroll systems stop contributions automatically at the cap. If you switch jobs mid-year or have multiple 401(k) plans, monitor your total deferrals carefully.
For a diversified portfolio weighted toward U.S. equities (e.g., S&P 500 index funds), 7% is a reasonable long-term nominal return. The S&P 500’s actual average since 1928 is approximately 10% nominal and ~7% after inflation. However, 401(k) portfolios often hold bonds and target-date funds that reduce returns. Conservative estimate: 5–6%. Moderate (balanced portfolio): 7%. Aggressive (equity-heavy, long horizon): 7–9%. Always model at both 5% and 7% to see the range of outcomes.
The answer depends on the interest rate of your debt vs. your employer match. Priority order: (1) Always contribute at least enough to capture your full employer match — that’s an instant 50–100% return on your contribution, which beats virtually any debt interest rate. (2) Then pay off high-interest debt (credit cards, payday loans at 15%+). (3) Then increase 401(k) contributions beyond the match threshold. Low-interest debt (student loans below 6%, mortgage) can generally be managed alongside continued retirement savings.
A vesting schedule determines when employer match contributions legally become yours. Your own elective deferrals are always 100% vested immediately. Common types: Cliff vesting: 0% until year 3, then 100% immediately. Graded vesting: 20% per year from years 2–6, fully vested at year 6. Immediate vesting: 100% from day one. Check your plan’s Summary Plan Description (SPD) — this document is required by law and tells you your exact vesting schedule. If you’re considering leaving, even a few months’ delay can be worth thousands.
A Solo 401(k) allows self-employed individuals and small business owners with no full-time W-2 employees (other than a spouse) to contribute as both “employee” and “employer.” In 2026: as the employee, you can defer up to $24,500 ($32,500 if 50+; $35,750 if 60–63); as the employer, you can contribute up to 25% of your net self-employment income. The combined total cannot exceed $72,000 (or $80,000/$83,250 with catch-up). This makes the Solo 401(k) one of the most powerful retirement vehicles available for freelancers and independent contractors. Available at Fidelity, Vanguard, Charles Schwab, and most major brokerages.
Inflation silently erodes purchasing power. At 2.9% inflation, a $1,000,000 balance in 30 years is worth only approximately $420,000 in today’s purchasing power. This is precisely why our calculator shows both the nominal projected balance AND the inflation-adjusted “today’s dollars” figure. For retirement planning, the inflation-adjusted figure is far more meaningful than the headline number.
Under SECURE 2.0, the RMD age for Traditional 401(k) and IRA accounts is currently age 73 (applies to anyone born between 1951 and 1959). Those born in 1960 or later will have an RMD age of 75, beginning in 2033. Roth 401(k) accounts no longer require RMDs during the owner’s lifetime (a SECURE 2.0 change effective 2024). Failing to take a required RMD results in a 25% excise tax on the amount not distributed (reduced from 50% under SECURE 2.0, and can be reduced further to 10% if corrected promptly).
Disclaimer & Data Sources: This calculator and educational content are for informational purposes only and do not constitute financial, tax, or investment advice. All 2026 contribution limits are sourced from IRS IR-2025-111 (November 13, 2025) and IRS Notice 2025-67, verified against IRS Publication 560. The Roth IRA phase-out ranges are per IRS IR-2025-111. The $150,000 Roth catch-up mandate threshold is per SECURE 2.0 Act of 2022, §603, effective January 1, 2026. The IRA catch-up contribution limit of $1,100 for age 50+ is per IRS IR-2025-111 (increased from $1,000 in 2025). 2026 federal tax brackets are based on Revenue Procedure 2025-32. Benchmark data attributed to Fidelity Investments How America Saves 2024. Return projections are estimates — actual investment performance will vary. Always consult a qualified financial advisor (CFP®) or CPA before making retirement planning decisions. Source: IRS.gov — 401(k) 2026 Limits.