401(k) Retirement Calculator

An employer match is free additional compensation contributed by your employer based on how much you contribute. A common formula is '50% match up to 6% of salary', which means if you contribute 6% of your salary, your employer adds an extra 3% on top of your pay—an immediate 50% guaranteed return on your investment.

For 2026, the IRS employee elective deferral limit for a 401(k) is $23,500 for individuals under age 50. Individuals aged 50 and older can contribute an additional catch-up contribution of $7,500, bringing their individual contribution limit to $31,000.

Your own contributions to a 401(k) are always 100% yours immediately. However, employer matching funds often follow a 'vesting schedule' (e.g. graded over 3 to 5 years). If you leave your employer before becoming fully vested, you forfeit a portion of the matched funds.

A standard financial priority order is: 1) Contribute to your 401(k) up to the full employer match (never leave free money behind), 2) Max out an HSA and Roth IRA for flexibility and tax-free growth, 3) Return to your 401(k) to contribute additional funds toward the $23,500 limit.