Don't leave the match on the table
An employer match is part of your pay. With a 50% match up to 6% of salary, contributing at least 6% gets you an extra 3% of salary every year. Contributing less means giving some of that money up.
2026 401(k) contribution limits
The IRS caps how much you can put into a 401(k), 403(b), most 457 plans, and the federal Thrift Savings Plan each year. Employer matching money doesn't count toward your personal limit, but it does count toward the overall cap.
| Limit (2026) | Amount |
|---|---|
| Your contributions | $24,500 |
| Extra catch-up, age 50 or older | $8,000 |
| Extra catch-up, age 60 to 63 (instead of the one above) | $11,250 |
| Your money + employer money, combined | $72,000 |
| IRA (catch-up at 50+: $1,100) | $7,500 |
Source: IRS Notice 2025-67. By default the calculator caps your contributions at these limits and raises them a little each year, the way the IRS adjusts them for inflation. Starting in 2026, people who earned more than about $150,000 from their employer the year before must make catch-up contributions as Roth (after-tax) money.
What the 4% rule means
The 4% rule is a rough guide for withdrawals: take about 4% of your savings in the first year of retirement, then adjust for inflation each year after that. It comes from historical market studies and is a starting point for planning, not a guarantee.
Why "today's dollars" matters
Prices rise over time. A balance that looks large decades from now buys less than the same amount today. The calculator divides the future balance by expected inflation to show its value in today's money.
Frequently asked questions
How much should I save for retirement?
Many planners suggest saving 10% to 15% of income, including any employer match. The right amount depends on when you start, your expected expenses, and other income such as Social Security.
Does this include Social Security?
No. Social Security benefits depend on your earnings history. You can get your personal estimate from the Social Security Administration and add it to the 4% income figure.