401(k) Calculator
Estimate your projected retirement nest egg with our US-specific 401(k) calculator. Model employee paycheck contributions under 2026 IRS contribution limits ($23,500), employer matching formulas, and annual wage growth.
401(k) Asset Distribution
Contributions vs Employer vs GrowthAccount Growth Timeline
Age 28 to 65Career Milestones Schedule
| Milestone | Salary | Your Contribution | Employer Match | 401(k) Balance |
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How 401(k) Plans Build Retirement Wealth in the United States
Established under Internal Revenue Code Section 401(k), the 401(k) plan is the cornerstone employer-sponsored retirement vehicle for American workers. Contributions are deducted directly from gross pay prior to federal and state income tax withholding, providing an immediate tax deduction while allowing dividends and capital gains to compound completely tax-deferred until retirement distributions begin.
Understanding the Employer Match
An employer 401(k) match is one of the most powerful wealth-building incentives available in US personal finance. When an employer matches 50% of your contributions up to 6% of your salary, you achieve an instant 50% return on invested capital before the money even enters the stock market. Financial professionals universally advise contributing at least enough to capture the full employer match before funding secondary accounts.
Official 2026 IRS Contribution Limits
The Internal Revenue Service adjusts 401(k) contribution caps annually to account for cost-of-living inflation:
- Base Elective Deferral Limit (2026): $23,500 for individuals under age 50.
- Catch-Up Contribution (Age 50+): An additional $7,500, bringing the total employee limit to $31,000.
- Combined Employer + Employee Cap (Section 415c): Up to $70,000+ per year across all contribution sources.