Calculate maximum 401k contributions and tax savings for 2026. Includes catch-up contributions. Free 401k calculator. No signup.
Your 401k is one of the most powerful wealth-building tools available — reducing taxable income while growing investments tax-deferred. But most workers contribute far below the maximum. In 2026, the employee contribution limit is $23,500 ($31,000 for age 50+). Our calculator shows exactly how much tax you save at different contribution levels so you can make the optimal decision.
2026 401k limits: Employee elective deferral: $23,500 (up from $23,000 in 2025). Catch-up contribution age 50+: additional $7,500 = $31,000 total. Super catch-up age 60-63: $11,250 catch-up = $34,750 total (new SECURE 2.0 provision). Total including employer match: $70,000 limit (2026). Roth 401k: same contribution limits as traditional, post-tax contributions, tax-free growth and withdrawals. Traditional vs Roth: traditional for current tax savings, Roth for tax-free retirement income.
Tax savings from 401k contributions: Traditional 401k contributions reduce your taxable income dollar-for-dollar. Example: $80,000 income, 22% tax bracket, $10,000 401k contribution: taxable income drops to $70,000, tax savings = $2,200. At maximum $23,500 contribution: tax savings $5,170 at 22% bracket. This is effectively a 22% match from the government in addition to employer matching. State income tax savings add to this in most states.
Optimal contribution order: Step 1: 401k to get full employer match (immediate 50-100% return). Step 2: Max Roth IRA ($7,000 or $8,000 age 50+) for tax-free growth. Step 3: Max 401k ($23,500 or $31,000 age 50+). Step 4: Taxable brokerage. Never skip employer match — it is the best guaranteed return available. Roth vs traditional: if you expect higher taxes in retirement: Roth. If you expect lower taxes in retirement: traditional. When uncertain: do both.
Options when leaving employer: Leave in current plan: valid if good investment options and low fees. Roll over to new employer plan: keeps money in 401k structure. Roll over to IRA: most recommended — more investment options, often lower fees. Cash out: worst option — 10% early withdrawal penalty plus ordinary income taxes = lose 30-50% immediately. Always roll over to IRA rather than cashing out unless severe hardship — the tax and penalty cost is enormous.
Yes — you can contribute to both in the same year. 401k employee contribution has no income limit for participation (though highly compensated employee rules may apply). Traditional IRA deductibility phases out at higher incomes if you have a workplace plan: single filer phase-out: $77,000-$87,000 MAGI. Roth IRA income limit: phase-out $146,000-$161,000 single (2026). Backdoor Roth IRA: available at any income if no existing traditional IRA balance.
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The 401k Contribution Calculator 2026 — Maximize Your Tax Savings uses the same formulas, rates, and reference data that financial planners, professionals, and government sources publish. Results are estimates intended for planning and education — for situations involving large sums or legal consequences, confirm with a qualified professional before acting.
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