USA 401(k) Calculator 2026
Maximize Your Retirement Savings

For 2026, per IRS Notice 2025-67 (released November 13, 2025): The employee contribution limit for 401(k), 403(b), most 457(b) plans, and the federal Thrift Savings Plan is $24,500 (up from $23,500 in 2025). Workers aged 50–59 or 64+ can contribute an additional $8,000 catch-up, totaling $32,500. Workers aged 60–63 have an enhanced "super catch-up" of $11,250 under SECURE 2.0, totaling $35,750. The combined employee + employer limit is $72,000. These apply to each individual plan — if you have multiple 401(k)s (e.g., from multiple jobs), your total contributions across all plans cannot exceed $24,500.

Traditional 401(k): Contributions are pre-tax — they reduce your taxable income now. Investments grow tax-deferred. Withdrawals in retirement are taxed as ordinary income. Required Minimum Distributions (RMDs) begin at age 73. Best when you expect lower taxes in retirement than now. Roth 401(k): Contributions are after-tax — no current tax break. Investments grow completely tax-free. Qualified withdrawals in retirement are 100% tax-free. Per SECURE 2.0 (effective 2024), Roth 401(k)s no longer have RMDs during the owner's lifetime. Best when you expect higher taxes in retirement, are early in your career, or want tax diversification. Important 2026 change: Workers earning over $150,000 in FICA wages must make catch-up contributions as Roth (even if they prefer Traditional).

An employer match is free money your employer adds to your 401(k) based on your contributions. The most common structure is "100% match on the first 6% of salary" — your employer matches dollar-for-dollar up to 6% of your salary. Example: On a $80,000 salary, 6% = $4,800. Your employer adds $4,800 free. Total annual contribution: $9,600 from just $4,800 of your own money — a 100% instant return. Other structures include "50% match on 6%" (employer adds $2,400 on $4,800 you contribute). Always contribute at least enough to get the full match — failing to do so is leaving guaranteed compensation on the table. Vesting schedules may apply — check your plan documents.

Vesting determines when you "own" your employer's matching contributions. Your own contributions are always 100% vested immediately. Employer contributions may vest over time: Immediate vesting: You own 100% of employer contributions from day one. Cliff vesting: 0% until you reach a certain year (e.g., 3 years), then 100% immediately. Graded vesting: Gradually over 2–6 years (e.g., 20% per year). If you leave before fully vested, you forfeit unvested employer contributions. Under ERISA, the maximum graded vesting schedule is 6 years (20% annually starting year 2), and the maximum cliff vesting is 3 years. Always check your plan's vesting schedule before leaving a job — staying even a few extra months can be worth thousands.

The standard penalty-free withdrawal age is 59½. Withdrawals before 59½ trigger a 10% early withdrawal penalty PLUS ordinary income tax on the full amount. Exceptions that waive the 10% penalty (tax still owed): (1) Separation from service at age 55+ (for your current employer's plan); (2) Death or total permanent disability; (3) Substantially Equal Periodic Payments (SEPP/Rule 72(t)); (4) Qualified domestic relations orders (QDRO — divorce); (5) Medical expenses exceeding 7.5% of AGI; (6) IRS levy; (7) Qualified disaster distributions; (8) Birth or adoption (up to $5,000 per event, per SECURE 2.0); (9) Terminal illness (SECURE 2.0). Emergency withdrawals: SECURE 2.0 also allows one emergency distribution per year up to $1,000, repayable within 3 years.

RMDs are mandatory annual withdrawals from Traditional 401(k)s, 403(b)s, and Traditional IRAs. Per SECURE 2.0: the RMD starting age is now 73 for those who turn 73 in 2023 or later. If you turn 73 in 2026, your first RMD is due by April 1, 2027 — but be careful: taking it that late means you'll owe two RMDs in 2027 (the first and the second), potentially creating a large tax event. The RMD amount is calculated by: Account Balance (Dec. 31 of prior year) ÷ IRS Life Expectancy Factor. At age 75, the divisor is 24.6. On a $500,000 balance, RMD = $500,000 ÷ 24.6 = ~$20,325. Failure to take RMDs incurs a 25% penalty on the missed amount (SECURE 2.0 reduced this from 50%). Roth 401(k)s no longer have RMDs (effective 2024 per SECURE 2.0). Roth IRAs never have RMDs for the original owner.

Yes — you can contribute to both simultaneously. In 2026: 401(k) up to $24,500 (plus catch-up) AND IRA up to $7,500 (plus $1,100 catch-up for 50+). However, your ability to deduct Traditional IRA contributions phases out if you're covered by a workplace plan: single filers: $81,000–$91,000; married filing jointly: $129,000–$149,000. Above these thresholds, Traditional IRA contributions are non-deductible (though a "backdoor Roth" strategy may be available). Roth IRA direct contributions phase out at $153,000–$168,000 (single) and $242,000–$252,000 (MFJ). Recommended priority order: (1) 401(k) to the employer match, (2) Max HSA, (3) Max IRA (Roth or Traditional), (4) Return to max 401(k).

The Rule of 72 estimates how long it takes for money to double: divide 72 by your annual return. At 7% return, money doubles every ~10.3 years (72÷7). At 8%, every 9 years. This is powerful for 401(k) planning: a 35-year-old with $50,000 at 7% will see it double to ~$100,000 by age 45, ~$200,000 by 55, ~$400,000 by 65 — all without contributing another dollar. That's the power of compound interest. Starting earlier is exponentially more powerful than contributing more later. A 25-year-old contributing $200/month for 10 years then stopping accumulates more by age 65 at 7% than a 35-year-old contributing $200/month for 30 years straight. This is why "start now" is the #1 retirement advice.

When you leave a job, you have four options for your old 401(k): (1) Leave it in the old plan — if allowed and the plan is good, this is often acceptable. (2) Roll over to new employer's 401(k) — consolidates accounts, may access employer's investment options. (3) Roll over to an IRA — usually the best option for most people; gives you maximum investment flexibility and potentially lower fees. Do a direct rollover (trustee-to-trustee) to avoid taxes and penalties. (4) Cash it out — almost always the worst option due to taxes and the 10% early withdrawal penalty. Always do a direct rollover — never have the check made out to you personally. If made out to you, you have 60 days to deposit it or face taxes and penalties on the full amount.

The #1 factor in long-term returns is minimizing costs. Look for: Low expense ratios: aim for under 0.20%; index funds often have 0.03%–0.15%. A 1% expense ratio vs. 0.05% costs you roughly $150,000 more on a $500,000 account over 20 years. Asset allocation by age: A common rule is "110 minus your age" in stocks. At 35: 75% stocks, 25% bonds. Adjust based on risk tolerance. Diversification: Total US stock market + international + bond index funds covers the basics. Target-date funds: Automatically rebalance as you age — convenient but often more expensive. Avoid: Company stock (concentration risk), actively managed funds with high fees, and annuities inside 401(k)s (typically unnecessary extra costs).

A 401(k) loan allows you to borrow from your own balance — typically up to 50% of vested balance or $50,000, whichever is less — and repay yourself with interest (usually Prime Rate + 1–2%). Advantages: no credit check, interest goes back to you. Risks: (1) If you leave your job, the loan is typically due within 60–90 days or treated as a distribution (taxable + 10% penalty). (2) The borrowed funds stop growing — opportunity cost is significant. (3) You repay with after-tax dollars but will be taxed again on withdrawal. (4) It can create a dangerous cycle of borrowing. 401(k) loans are generally a last resort — consider a personal loan or HELOC first, as these don't jeopardize your retirement savings or trigger tax penalties if you change jobs.

The SECURE 2.0 Act created an enhanced "super catch-up" contribution specifically for workers ages 60, 61, 62, and 63. In 2026, this allows these workers to contribute $11,250 extra on top of the $24,500 base limit — totaling $35,750, the highest ever allowed in a 401(k). Important notes: (1) The super catch-up is ONLY available for ages 60–63 — at 64 and beyond, the standard $8,000 catch-up applies. (2) Not all 401(k) plans have adopted this feature yet — check with your HR department. (3) Starting in 2026, workers earning over $150,000 must make these catch-up contributions as Roth (after-tax). (4) This provision expires — workers must be in the 60–63 age window to access it. If you're 60–63 in 2026, this may be the most valuable tax planning opportunity of your career.

Use our growth calculator above for your personalized projection. As benchmarks: contributing $500/month for 30 years at 7% growth ≈ $566,764. Contributing $1,000/month for 30 years at 7% ≈ $1,133,529. Starting with $50,000 and adding $800/month for 30 years at 7% ≈ $1,235,000. Key variables: starting balance, monthly contribution, employer match, annual return, and time. The most important factor is TIME — every decade of delay approximately halves the potential outcome due to lost compounding years. Fidelity's retirement benchmark: save 10× your final salary by retirement. To hit $800,000 at 67 starting at 35: roughly $700–$1,000/month at 7% (depending on starting balance and employer match).

Yes, and the optimal strategy depends on interest rates: (1) Always capture the employer match first — this is a guaranteed 50–100% return, beating any interest rate. (2) Pay off high-interest debt next (credit cards at 20%+ APR) — paying off 24% debt is a guaranteed 24% return, which no investment reliably matches. (3) Max IRA/401(k) after high-interest debt — once high-rate debt is cleared, redirect that payment to retirement savings. The crossover point: debt above ~6–7% APR should generally be prioritized over investing; below that threshold, investing often wins long-term due to compounding and tax benefits. A personal loan at 8–12% APR to pay off 24% credit card debt can free up hundreds per month for 401(k) contributions — net positive outcome.

A Roth conversion moves money from a Traditional IRA or 401(k) to a Roth account. You pay income tax on the converted amount now, but future growth and withdrawals become tax-free. Conversions make sense when: (1) You're in a low-income year (job loss, early retirement, sabbatical). (2) You believe tax rates will be higher in the future. (3) You want to reduce future RMDs (Traditional accounts require RMDs; Roth IRAs don't). (4) You want to pass wealth tax-free to heirs (Roth IRAs inherited after 2019 are subject to the 10-year rule, but withdrawals remain tax-free). The ideal conversion fills up low tax brackets without pushing into a higher one. Example: convert enough to fill the 12% bracket ($50,400 for single filers in 2026) each year during low-income retirement years before RMDs force you into higher brackets.