401k Calculator - Project Your Retirement Savings

For 2026, the 401k contribution limit is $23,500 for employees under 50. Those 50 and older can make catch-up contributions of an additional $7,500, bringing their total limit to $31,000.

Employer matching is typically a percentage of your salary that your company contributes to your 401k. For example, a 4% match means your employer will contribute 4% of your salary if you contribute at least 4% yourself. This is essentially free money toward your retirement.

Financial experts often recommend contributing enough to get your full employer match (usually 3-6% of your salary). After that, consider contributing 10-15% of your total income toward retirement, including any employer match.

You can withdraw from your 401k without penalty after age 59½. However, if you leave your job at age 55 or older, you may be able to take penalty-free withdrawals from your former employer's 401k plan.

Excess contributions are subject to a 10% excise tax. If you discover you've overcontributed, contact your plan administrator to have the excess amount returned before the tax filing deadline to avoid penalties.

Traditional 401k contributions are made pre-tax, meaning they reduce your taxable income now but are taxed upon withdrawal. Roth 401k contributions are made with after-tax dollars, but qualified withdrawals in retirement are completely tax-free.