How 401(k) employer matching works
Many employers add money to your 401(k) when you contribute. A plan that matches "50% up to 6%" adds 50 cents for every dollar you put in, on the first 6% of your salary. Anything you put in above 6% is not matched. The match is figured on what you actually contribute, so if you put in less, you get less.
With a $80,000 salary:
| Plan and your contribution | You put in | Employer adds |
|---|---|---|
| 50% up to 6%, you give 6% | $4,800 | $2,400 |
| 50% up to 6%, you give 3% | $2,400 | $1,200 |
| 100% up to 4%, you give 4% | $3,200 | $3,200 |
In the second row you leave $1,200 of free money on the table every year. That is why the first rule of 401(k) saving is to contribute at least up to the match. Over a career the difference adds up: at 6% with a 50% match up to 6%, a 3% yearly raise and a 7% return from age 30 to 65, this 401k calculator projects about $1,460,142, of which $145,109 is employer money before growth.
Some employers use vesting, which means their contributions become yours over several years. Leave before you are fully vested and you lose part of the match. This calculator assumes you keep all of it.
2026 401(k) contribution limits
The IRS caps how much of your own pay you can put into a 401(k) each year. These are the limits for 2026:
| Your age in 2026 | Regular limit | Catch-up | Your total |
|---|---|---|---|
| Under 50 | $24,500 | none | $24,500 |
| 50 to 59, and 64 or older | $24,500 | $8,000 | $32,500 |
| 60 to 63 | $24,500 | $11,250 | $35,750 |
The higher catch-up for ages 60 to 63 is new since 2025. At 64 you go back to the regular catch-up. Your employer match does not count toward these limits. It counts toward a separate total of $72,000 for you and your employer together, with catch-up money on top, and the match can only be figured on up to $360,000 of salary.
The calculator caps your own contribution at the limit for your age each year and shows a notice when that happens. Because plans match what you actually put in, a capped contribution can also mean a smaller match. The IRS raises the limits for inflation most years. The calculator keeps the 2026 numbers for every year unless you set a yearly increase, which makes the projection a little cautious.
Traditional vs Roth 401(k)
With a traditional 401(k) your contributions come out of your paycheck before income tax, so you pay less tax now. In retirement every withdrawal is taxed as income. With a Roth 401(k) you pay the tax now, and qualified withdrawals in retirement, including the growth, are tax free. The limits are the same for both and you can split your contributions between them if your plan offers both.
A simple way to choose: if you expect a lower tax rate in retirement than today, traditional tends to come out ahead. If you expect the same or a higher rate, Roth does. Many people use some of each to keep options open. This calculator shows the account balance and does not work out taxes.
One new rule: starting in 2026, if your FICA wages from that employer were over $150,000 in the prior year, your catch-up contributions must go in as Roth. Your regular contributions can still be traditional. The wage threshold is adjusted for inflation over time.
How to use the 401(k) calculator
- 1Enter your annual salary, the percent you contribute and your employer match. Tap a common match formula or type your own match percent and the share of pay it applies to.
- 2Add your current balance, your yearly salary raise, your age, your retirement age and an expected return. Pick traditional or Roth to see what it means for taxes.
- 3Read your balance at retirement, the split into your money, free money from the match and growth, and any notice about the 2026 limits or match you miss. Copy the result or the table.
Frequently asked questions
How much should I contribute to my 401(k)?
At the very least enough to get the full employer match, because the match is part of your pay that you only get when you save. After that, a common guideline is to save 10 to 15% of your salary in total, including the match. Raising your percent by one point each year is an easy way to get there.
What is the 401(k) contribution limit for 2026?
You can put in up to $24,500 of your own money in 2026. From age 50 you can add a $8,000 catch-up, for $32,500 in total. At ages 60 to 63 the catch-up is $11,250 instead, for $35,750. Your employer match does not count toward these amounts.
Does the employer match count toward my limit?
No. The $24,500 limit is only for your own contributions. Employer money counts toward a separate total limit of $72,000 for 2026, for you and your employer together, with catch-up contributions on top. Few people reach it unless they earn a lot or their employer adds large profit sharing.
Is the employer match mine right away?
Your own contributions always are. Employer contributions can follow a vesting schedule, for example 20% more each year over several years, and if you leave before you are fully vested you lose the unvested part. Check your plan documents. This calculator assumes you keep the whole match.
Is this calculator exact?
No. It is an estimate based on the numbers you enter, with the 2026 IRS limits kept the same in later years unless you raise them. Real returns vary from year to year, plans differ in how they match, and fees lower your result. It is not financial or tax advice.