A 401(k) is an employer-sponsored retirement account: pretax (or Roth) payroll contributions grow tax-advantaged, often boosted by an employer match — free money you forfeit by contributing too little. This calculator projects your balance at retirement from your salary, contribution rate, and match formula, applying the 2026 IRS deferral limits automatically as your salary and age change.
Quick answer: Salary + contribution rate + employer match + expected return → projected 401(k) balance at retirement, with 2026 IRS limits applied automatically.
Simulated year-by-year (not a closed-form shortcut), because the IRS deferral cap and your salary both change annually: employeeCap(age) = $24,500 + $8,000 (age 50-59) or + $11,250 (age 60-63) [2026 limits] annualContribution = min(contribution% × salary, employeeCap) employerContribution = min(contribution%, matchCap%) × matchRate% × salary Each year: balance = balance × (1 + r/12) + monthlyContribution, applied 12×
Assumptions
Projected balance ≈ $1.62M at 65. Total employee contributions ≈ $324K, employer match ≈ $121K, investment growth ≈ $1.14M — growth dominates the final number over a 30-year horizon.
The 15% contribution on $95K salary ($14,250) stays under the age-50+ catch-up cap ($32,500 in 2026) for the full projection — no contribution is clipped by the IRS limit in this scenario.
For 2026, the IRS employee elective deferral limit is $24,500. Workers age 50+ can contribute an additional $8,000 catch-up ($32,500 total). Workers age 60–63 get a higher 'super catch-up' of $11,250 instead ($35,750 total) under SECURE 2.0. Source: IRS Newsroom, 'IRA limit increases to $7,500; 401(k) limit increases to $24,500 for 2026.'
The most common structure matches a percentage of your contribution up to a cap on your salary — e.g., '50% up to 6% of salary' means your employer adds $0.50 for every $1 you contribute, capped once your contribution reaches 6% of your salary. Contributing less than the cap leaves free money on the table; check your plan's specific formula, since match structures vary widely by employer.
No — the $24,500 (2026) limit applies only to your employee elective deferral. Employer contributions (match + any profit-sharing) are subject to a separate, much higher combined limit ($72,000 total employee + employer for 2026 workers under 50, per IRS guidance). Almost no one hits the combined limit through match alone.
Traditional 401(k) contributions reduce your taxable income now and are taxed on withdrawal in retirement; Roth 401(k) contributions are taxed now and grow tax-free. The traditional generally wins if you expect a lower tax bracket in retirement than today; Roth generally wins if you expect a higher or similar bracket, or want tax diversification. This calculator projects the balance either way — the tax treatment doesn't change the growth math shown here.
The historical U.S. large-cap stock market (S&P 500) has returned approximately 10% nominally and ~7% in real (inflation-adjusted) terms on a long-run average, per FRED historical data. A typical 401(k) target-date or balanced fund runs somewhat below a 100%-stock return. Use a conservative 5–7% for planning; past returns don't guarantee future results.