Employer Match
Example: 50% match on the first 6% means the employer adds $0.50 for every $1.00 you contribute, up to 6% of your salary.
401(k) Optimization
Enter your salary and plan details and click optimize.
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What This Calculator Does
This 401(k) contribution limit optimizer helps you maximize your retirement savings by calculating how much you can contribute under the 2026 IRS limits, how much your employer will match, and the tax savings from pre-tax contributions. For 2026, the IRS employee elective deferral limit is $24,500 (up from $23,500 in 2025). Workers age 50 and older can add a $7,500 catch-up contribution, and a new "super catch-up" of $11,250 is available for those ages 60 through 63 (SECURE 2.0 Act provision). The total combined employee and employer contribution limit is $72,000.
The Formula
Your employee contribution is a percentage of your salary, limited by the IRS annual maximum ($24,500 for 2026, plus catch-up if eligible). The employer match is calculated by applying the match rate to your contribution up to the match cap. For example, a "50% match on the first 6%" means the employer contributes $0.50 for every $1.00 you contribute, up to 6% of salary. Not contributing enough to capture the full match is leaving free money on the table.
Step-by-Step Example
Enter salary and age
Annual salary: $95,000. Age: 35 (no catch-up eligibility yet).
Set contribution rate
You contribute 10% of salary: $9,500/year ($791.67/month).
Enter employer match
Employer matches 50% of the first 6% of salary. Matchable salary: $5,700. Employer match: $2,850/year.
Review optimization
Total contribution: $12,350/year. Employee limit: $24,500. Room to increase: $15,000. Tax savings at 22% bracket: $2,090/year.
Real-World Use Cases
Maximize Employer Match
Calculate the minimum contribution percentage needed to capture the full employer match, which is an immediate 50-100% return on investment.
Catch-Up Planning
Workers approaching 50 can plan for the additional $7,500 catch-up contribution, and those ages 60-63 can use the new $11,250 super catch-up.
Tax Optimization
Calculate the annual tax savings from pre-tax 401(k) contributions at your marginal tax rate to understand the true after-tax cost of saving.
Common Mistakes to Avoid
Not contributing enough to get the full employer match. This is the most common and costly 401(k) mistake. A 50% match is a guaranteed 50% return.
Contributing the same percentage at every salary level. As your salary grows, the same percentage yields more dollars. Review your contribution rate after every raise.
Forgetting about the super catch-up. Workers ages 60-63 can contribute an extra $11,250 on top of the standard limit starting in 2026 under SECURE 2.0.
Not considering Roth 401(k) contributions. Many plans now offer a Roth option. If you expect higher taxes in retirement, Roth contributions (taxed now, tax-free later) may be better.
Ignoring the total contribution limit. The combined employee + employer limit is $72,000 in 2026. High earners with generous matches should track this.
Frequently Asked Questions
Accuracy and Disclaimer
Contribution limits reflect 2026 IRS guidelines. Employer match formulas, vesting schedules, and plan rules vary by employer. Tax savings depend on your individual tax situation. This calculator does not account for state taxes, Roth vs. traditional choices, or vesting. Consult your plan administrator and tax advisor.
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