How much should I contribute to my 401(k)? See it by the paycheck
Start with enough to get your full employer match, then raise it as far as your budget allows. Each row below uses the tool's starting inputs: age 32, an $85,000 salary with 3% raises, $40,000 saved, and a 50% match up to 6%.
| You contribute | Take-home falls per paycheck | Balance at 67 | In today's dollars |
|---|---|---|---|
| 4% | $102.00 | $1,333,282 | $561,806 |
| 6% | $152.99 | $1,812,625 | $763,788 |
| 8% | $204.00 | $2,132,187 | $898,442 |
| 10% | $254.99 | $2,451,750 | $1,033,096 |
| 15% | $382.49 | $3,250,655 | $1,369,732 |
| 20% | $510.00 | $4,049,561 | $1,706,368 |
Read the today's-dollars column first. The balance column is what your statement may say, but it's in dollars that will buy less by then. Returns aren't guaranteed and can be negative, so treat these as examples.
What's the 2026 401(k) limit, with catch-up by age?
For 2026, you can defer $24,500, or more if you're 50 or older by the end of the year. As of November 3, 2026, the IRS had not published 2027 limits. The same employee limit covers 403(b), governmental 457, and Thrift Savings Plan accounts.
| Your age in the year | Catch-up | Total you can defer | To max out, per paycheck |
|---|---|---|---|
| Under 50 | $0 | $24,500 | $942.31 |
| 50 to 59 | $8,000 | $32,500 | $1,250.00 |
| 60 to 63 | $11,250 | $35,750 | $1,375.00 |
| 64 or older | $8,000 | $32,500 | $1,250.00 |
Three catches are easy to miss:
- The higher catch-up is a four-year window. It applies in the years you turn 60 through 63, then drops back at 64.
- Catch-ups can be forced into Roth. For 2026, if your 2025 wages from the employer sponsoring the plan topped $150,000, catch-ups in a plan with a Roth option must be Roth, so they won't lower your tax now.
- Your plan may set a lower limit, and must permit catch-ups. Employer money counts separately, up to a combined $72,000 before catch-ups in 2026.
What does a 401(k) contribution really cost per paycheck?
Less than the amount going in, if it's traditional. At $85,000, 8% means $261.54 goes in and take-home falls $204.00. The difference is income tax you don't pay this year. A Roth contribution costs the full amount now.
| Salary | Goes into 401(k) | Take-home falls: traditional | Take-home falls: Roth |
|---|---|---|---|
| $50,000 | $192.31 | $169.24 | $192.31 |
| $75,000 | $288.46 | $225.00 | $288.46 |
| $100,000 | $384.62 | $300.00 | $384.62 |
| $150,000 | $576.92 | $438.46 | $576.92 |
| $200,000 | $769.23 | $584.61 | $769.23 |
A traditional deferral still counts as wages for Social Security and Medicare tax, so it saves income tax only. The saving depends on your bracket. The "State income tax" field also applies to wages after a traditional deferral, so it can widen the gap.
How does the employer match work, and when is it really yours?
A match is extra pay you only get by contributing. For "50% up to 6%," enter 50 in "Employer matches" and 6 in "On contributions up to." On $85,000, contributing 6% earns $2,550 a year from your employer. Contributing 4% earns $1,700. Over a career at a 6% contribution, the match adds $479,343 by 67, or $201,981 in today's dollars.
Maxing out early can backfire. Ask your plan whether it matches per paycheck and whether it has a "true-up." Say you earn $150,000 and contribute 25%. You'd hit $24,500 after 17 paychecks. With a per-paycheck match and no true-up, the last 9 paychecks get nothing, costing about $1,558 that year.
Your own contributions are always 100% yours. Employer money may vest over time, and the plan sets the schedule. The IRS shows these two as examples:
| Years of service | Cliff vesting | Graded vesting |
|---|---|---|
| 1 | 0% | 0% |
| 2 | 0% | 20% |
| 3 | 100% | 40% |
| 4 | 100% | 60% |
| 5 | 100% | 80% |
| 6 | 100% | 100% |
Leave after two years on the default inputs and your employer will have added $5,177. Under the graded schedule you keep $1,035. Under the cliff you keep nothing. The projection counts all employer money as yours, so subtract the unvested part yourself if you may leave early. Your Summary Plan Description has your real schedule.
Roth or traditional 401(k): which leaves you more?
It mostly depends on your tax rate now against your rate in retirement. Take $1,000 of pay at 22% tax today and 7% growth for 30 years. Roth invests what's left after tax and ends at $5,938, tax free if the withdrawal is qualified. Traditional invests all of it and ends at $5,938 after 22% tax later, the same result. If your later rate is 12%, traditional ends at $6,699 and wins.
Nobody knows future tax law, so splitting between the two is a fair way to hedge. A Roth 401(k) has no income limit, unlike a Roth IRA. The IRS FAQ on Roth accounts says employer matches on Roth contributions go into a pre-tax account, so you'd pay tax on that part later. Ask your plan how it handles this.
The "Roth share" field changes your paycheck cost, not the projection. A traditional balance is before tax: $2,132,187 is only $1,812,359 after an example 15% tax. For an after-tax comparison, the IRA calculator runs the same Roth and Traditional math.
Where this estimate can mislead you, including fees
Fees are the input you're most likely to skip. Moving from 0.4% to 1% on the default plan cuts the balance at 67 from $2,132,187 to $1,871,509. A Labor Department booklet shows the same effect: over 35 years, 1% more in fees cuts a $25,000 balance's ending value by 28%. Your plan's fee disclosure lists yours.
The tool also assumes steady returns, 2% yearly growth in IRS limits, and the same raises every year. Its paycheck math is a simplified federal estimate. It doesn't model loans, hardship withdrawals, or a one-participant 401(k), where you contribute as both employee and employer.
For questions about your plan or a denied benefit, Labor Department benefits advisors take calls at 866-444-3272. A tax professional can help with Roth catch-up and rollover choices.
Common questions
What does it cost to withdraw from a 401(k) early?
Before 59½, you generally owe income tax plus a 10% additional tax. In the 22% bracket, a $10,000 withdrawal leaves about $6,800 before state tax. There are exceptions, such as leaving your job during or after the year you turn 55.
How much monthly income will my 401(k) give me?
One rule of thumb is 4% of the balance in the first year. On the default projection of $898,442 in today's dollars, that's about $2,995 a month before tax. The retirement calculator tests whether that lasts, with Social Security included.
What happens if I go over the 401(k) limit?
Tell your plan administrator by April 15 of the following year, so the excess and its earnings can be paid out. Limits apply across all your plans, even with unrelated employers, so count both if you changed jobs mid-year. This tool checks one plan only.
Can I contribute to both a 401(k) and an IRA?
Yes. Having a workplace plan doesn't stop you from having an IRA, though it can limit your Traditional IRA deduction at higher incomes. The IRA calculator shows your limit.
Does this work for a 403(b) or the Thrift Savings Plan?
For the most part. The 2026 employee limit and the catch-ups are the same. Enter your employer's formula in the match fields, including any automatic contribution as "Profit sharing." Check your plan's own rules for vesting and fees.
Should I get the match or pay off debt first?
Getting the full match is usually the first step, since it's an immediate return from your employer before any market gain. On a 50% match, that's 50% on the dollars it covers. Compare what's left against high-rate debt with the debt payoff calculator.
Sources
- Retirement topics: 401(k) and profit-sharing plan contribution limits · Internal Revenue Service
- Retirement topics: Catch-up contributions · Internal Revenue Service
- Retirement topics: Vesting · Internal Revenue Service
- Topic no. 424: 401(k) plans · Internal Revenue Service
- Retirement plans FAQs on designated Roth accounts · Internal Revenue Service
- A Look at 401(k) Plan Fees · U.S. Department of Labor