401(k) Calculator 2026 — Retirement Savings Projection

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401(k) Calculator

Retirement projection · 2026 limits

Current Age

Retirement Age

Annual Salary ($)

Your Contribution Rate (%)

Employer Match (%)

Match Up To (% of salary)

Current 401(k) Balance ($)

Expected Annual Return (%)

Annual Salary Increase (%)

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Enter your salary, contribution rate, and years to retirement to project your 401(k) balance.

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How 401(k) Accounts Work

A 401(k) is an employer-sponsored retirement savings plan with significant tax advantages. Traditional 401(k): contributions reduce taxable income now, withdrawals in retirement are taxed. Roth 401(k): contributions made after-tax, qualified withdrawals in retirement are tax-free. Both are powerful tools — the right choice depends on whether you expect to be in a higher or lower tax bracket in retirement.

The employer match is free money. If your employer matches 50% of contributions up to 6% of salary and you earn $85,000, contributing 6% ($5,100) earns you an extra $2,550 annually — a guaranteed 50% return on that portion. Always contribute at least enough to capture the full match.

2026 Contribution Limits

Employee limit: $23,500/year. Catch-up (age 50+): additional $7,500 = $31,000 total. Ages 60-63 (SECURE 2.0 enhanced catch-up): +$11,250 = $34,750. Combined employer + employee limit: $70,000 per year.

The Power of Compound Growth

At 7% annual return: $500/month for 30 years grows to ~$567,000. The same $500/month for 35 years grows to ~$834,000. Adding just 5 more years nearly doubles the result. Starting early is the most important 401(k) decision.

Traditional vs Roth 401(k)

Traditional: pre-tax contributions lower current taxable income, taxed at withdrawal. Roth: after-tax now, tax-free growth and withdrawals. Young low-to-moderate earners benefit most from Roth. High earners near peak bracket often prefer Traditional.

Required Minimum Distributions

Traditional 401(k)s require RMDs starting at age 73 (SECURE 2.0). Roth 401(k)s also require RMDs unless rolled to a Roth IRA. Failing to take RMDs triggers a 25% excise tax on the amount not withdrawn.

This calculator provides projections for illustrative purposes. Actual investment returns vary and are not guaranteed. Consult a qualified financial advisor for personalized retirement planning advice.

Frequently Asked Questions

What is a 401(k) and how does it work?+

A 401(k) is an employer-sponsored defined contribution retirement plan. You elect to have a percentage of each paycheck contributed before or after taxes (Traditional vs Roth). The money is invested in mutual funds, ETFs, and other options. Earnings grow tax-deferred (Traditional) or tax-free (Roth). Withdrawals before age 59.5 incur a 10% penalty plus income tax. Employer matching adds free contributions on top of your own.

How much should I contribute to my 401(k)?+

Minimum: enough to get the full employer match. That is an immediate guaranteed return on that portion. Recommended total: 15% of gross income including employer match (Fidelity, Vanguard, most financial planning guidelines). Starting younger means you need a lower percentage. If 15% is not immediately achievable, increase by 1% each year automatically until you reach it.

What is the 401(k) contribution limit for 2026?+

2026 IRS limits: Employee elective deferral: $23,500. Catch-up contribution (age 50-59 and 64+): $7,500 additional, total $31,000. Ages 60-63 (SECURE 2.0 enhanced catch-up): $11,250 additional, total $34,750. Combined employer + employee limit: $70,000 or 100% of compensation, whichever is less. These limits are per employer, per year.

How does employer matching work?+

Most common formula: 50% of your contribution up to 6% of salary. On $85,000 salary, contributing 6% ($5,100) earns $2,550 employer match. Contributing 10% still earns only $2,550 because the match caps at 6%. Contributing only 4% earns $1,700, leaving $850 of free money unclaimed. Always contribute at least enough to hit the match cap.

What is vesting in a 401(k)?+

Vesting determines how much of the employer's contributions you own if you leave. Your own contributions are always 100% yours. Employer match may have a vesting schedule: cliff vesting (0% until a date, then 100%) or graded vesting (e.g. 20% per year over 5 years). Leaving before full vesting means forfeiting unvested employer contributions. Always check your vesting schedule before changing jobs.

Should I choose Traditional or Roth 401(k)?+

Traditional: reduces taxable income now, taxed at withdrawal. Better if you expect a lower tax rate in retirement or are in a high bracket today. Roth: taxed now, tax-free in retirement. Better if you are young, in a low-to-moderate bracket, or expect higher taxes later. Many advisors recommend both if possible for tax diversification across retirement accounts.

What happens to my 401(k) when I change jobs?+

Options: roll over to new employer's 401(k); roll over to an IRA (more investment options, often lower fees); leave at old employer if fees are low; or cash out (almost always the worst option, triggering 10% penalty plus income tax and losing 30-40% immediately). Most people should roll to a low-cost IRA at Fidelity, Vanguard, or Schwab. Complete within 60 days to avoid tax consequences.

What investment options should I choose in my 401(k)?+

Best approach for most people: if your plan offers a low-cost target-date fund (expense ratio under 0.20%), use it. It automatically adjusts allocation as you approach retirement. If target-date fees are high, build a simple portfolio: US total stock market index + international index + bond index. The most important factor is minimizing expense ratios. A 1% annual fee reduces a 30-year retirement account balance by roughly 25%.

Can I withdraw from my 401(k) before retirement?+

Withdrawals before age 59.5 generally trigger a 10% early withdrawal penalty plus income tax. Exceptions include disability, certain medical expenses, QDRO (divorce), and substantially equal periodic payments (Rule 72(t)). 401(k) loans are an alternative: borrow up to 50% of vested balance or $50,000. Must repay within 5 years, and if you leave the job, the balance becomes due immediately or is treated as a distribution.

What is the 4% withdrawal rule?+

The 4% rule states that withdrawing 4% of your portfolio in year one of retirement, then adjusting for inflation annually, has historically allowed a portfolio to last 30 years with high success rates. A $1,000,000 portfolio at 4% generates $40,000/year or $3,333/month. For retirements longer than 30 years, 3% to 3.5% withdrawal rates provide higher safety margins. This calculator shows both 3% and 4% estimates.