---
title: "401(k) Calculator 2026: Paycheck Cost, Tax Savings and Growth | TaxWren"
description: "See what a 401(k) contribution costs your paycheck after tax, how much income tax it saves, your employer match and your balance at retirement. 2026 limit $24,500, $32,500 at 50+."
url: https://taxwren.com/401k-calculator
---

2026 tax year · updated Oct 15, 2026

# 401(k) calculator

A traditional 401(k) contribution comes out of your pay before income tax, so your take-home pay drops by less than you put in. Contributing 6% of a $75,000 salary ($4,500 a year) cuts take-home pay by only $135 per biweekly paycheck in 2026. See your paycheck cost, tax saved, employer match and balance at retirement.

## Projected balance at 65

$778,417

$293,835 contributed, the rest is growth (your assumptions)

- Your contribution this year: $4,500
- Employer match: $2,250
- Cost per paycheck after tax: $135
- Income tax saved this year: $990
- Your 2026 limit: $24,500

### Balance by age

| Age | Balance |
| --- | --- |
| 40 | $66,276 |
| 45 | $132,317 |
| 50 | $225,235 |
| 55 | $354,593 |
| 60 | $533,238 |
| 65 | $778,417 |

## 2026 401(k) contribution limits

|  | 2026 | 2025 |
| --- | --- | --- |
| Employee contributions (under 50) | $24,500 | $23,500 |
| Catch-up, age 50 or older | $8,000 | $7,500 |
| Catch-up, ages 60 to 63 | $11,250 | $11,250 |
| Total at 50+ / at 60-63 | $32,500 / $35,750 | $31,000 / $34,750 |

The same limit covers 403(b) plans, the federal Thrift Savings Plan and governmental 457(b) plans. Source: [IRS Notice 2025-67 (2026 retirement plan and IRA limits)](https://www.irs.gov/pub/irs-drop/n-25-67.pdf).

## How much tax a 401(k) saves

Income tax saved in 2026 by contributing 10% of salary to a traditional 401(k), single filer:

| Salary | Contribution | Tax saved, Texas | Tax saved, California | Real cost, Texas |
| --- | --- | --- | --- | --- |
| $40,000 | $4,000 | $480 | $640 | $3,520 (88%) |
| $60,000 | $6,000 | $720 | $1,080 | $5,280 (88%) |
| $80,000 | $8,000 | $1,760 | $2,420 | $6,240 (78%) |
| $100,000 | $10,000 | $2,200 | $3,130 | $7,800 (78%) |
| $150,000 | $15,000 | $3,600 | $4,995 | $11,400 (76%) |

The saving is your [marginal income tax rate](/glossary#marginal-tax-rate) on each dollar contributed. It is larger in states with an income tax: the 6% example above saves $990 in Texas and $1,350 in California. Social Security and Medicare are still due on the contributions.

## Traditional vs. Roth 401(k)

-   **Traditional:** contributions are made before tax and reduce your [taxable income](/glossary/taxable-income) now; withdrawals of contributions and earnings are taxed as income.
-   **Roth:** contributions are made after tax, so your paycheck shrinks by the full amount; withdrawals of contributions and earnings are tax-free if qualified (the account is at least five years old and you are 59½ or older, disabled or deceased).
-   Roth contributions are elective deferrals too, so both types share the same $24,500 limit. Employer contributions count toward a separate, higher overall limit.

Already have money in a traditional IRA? The [Roth conversion calculator](/roth-conversion-calculator) shows what moving it to a Roth costs. For your whole paycheck, see the [take-home pay calculator](/take-home-pay-calculator).

Sources: [IRS Notice 2025-67 (2026 retirement plan and IRA limits)](https://www.irs.gov/pub/irs-drop/n-25-67.pdf); [IRS Topic 424, 401(k) plans](https://www.irs.gov/taxtopics/tc424); [IRS, Roth comparison chart](https://www.irs.gov/retirement-plans/roth-comparison-chart); [IRS, 401(k) and profit-sharing plan contribution limits](https://www.irs.gov/retirement-plans/plan-participant-employee/retirement-topics-401k-and-profit-sharing-plan-contribution-limits). The projection uses your own return and raise assumptions and holds the limits at 2026 amounts; it is an illustration, not a forecast.

## Frequently asked questions

### What is the 401(k) contribution limit for 2026?

$24,500 of your own contributions (traditional and Roth combined). At age 50 or older you can add a $8,000 catch-up, for $32,500; at ages 60 to 63 the catch-up is $11,250, for $35,750. Employer contributions don't count toward this limit.

### How much does a 401(k) contribution reduce my paycheck?

Less than the amount you put in, if it is traditional (pre-tax). A single filer in Texas earning $75,000 who contributes 6% ($4,500 a year) takes home $135 less per biweekly paycheck, because $990 of income tax is saved. A Roth contribution of the same amount costs $173 per paycheck.

### Should I choose a traditional or Roth 401(k)?

Traditional contributions lower your taxable income now and are taxed when you withdraw them; Roth contributions are taxed now and qualified withdrawals (account at least five years old, age 59½ or older) are tax-free. Traditional tends to win if you expect a lower tax rate in retirement, Roth if you expect a higher one. You can split contributions between them if your plan allows it.

### Do 401(k) contributions reduce Social Security and Medicare tax?

No. Elective deferrals are excluded from income tax withholding but still count as wages for Social Security and Medicare, so the tax saving is income tax only (federal and, in most states, state).

### How does an employer match work?

A common formula is a 50% match on contributions up to 6% of pay. On a $75,000 salary, contributing 6% ($4,500) brings $2,250 from the employer; contributing less leaves part of the match unused.

## Related calculators

-   [Take-home pay calculatorYour paycheck after every tax](/take-home-pay-calculator)
-   [Roth conversion calculatorThe tax cost of converting to a Roth IRA](/roth-conversion-calculator)
-   [RMD calculatorRequired minimum distributions from your IRA](/rmd-calculator)

## Related guides

-   [Guide · Paychecks401(k) contribution limits for 2026: $24,500, plus catch-up at 50 and at 60 to 63The 2026 401(k) limit is $24,500 (up $1,000). At 50+ you can add $8,000, at 60 to 63 $11,250. What maxing out costs per paycheck.](/blog/401k-contribution-limits)