Getting the most from your 401(k)
The single highest-return move in most plans is contributing at least enough to capture the full employer match — that is an immediate return you can’t earn anywhere else. After that, the same forces as any long-term account apply: rate, time, and consistency.
This tool models your contribution as a percentage of salary, applies the employer match, and enforces the IRS limits (elective deferral, age-based catch-up, and the annual-additions cap). The limits start at the verified 2026 figures and are projected forward each year by the COLA (cost-of-living) rate you set, using IRS-style rounding — matching how the IRS actually indexes them. It does not account for taxes on withdrawal — a traditional 401(k) is taxed as ordinary income when you draw it.
Frequently asked questions
- Should I always contribute enough to get the full employer match?
- In almost every case, yes. An employer match is an immediate, guaranteed return on your contribution — usually the highest-return decision available in a retirement plan. Leaving it on the table is leaving pay behind.
- What return rate should I assume for a 401(k)?
- Returns depend on your fund mix. A diversified stock-heavy portfolio has historically returned roughly 7% after inflation over the long run, but past performance is no guarantee. Model a conservative rate too.
- Does this calculator model contribution limits?
- Yes. It starts from the verified 2026 figures — elective-deferral limit ($24,500), age-based catch-up ($8,000 at 50+, $11,250 at ages 60–63), and the $72,000 annual-additions cap — and projects them forward each year by the COLA rate you set, with IRS-style rounding. The employer match is capped accordingly.
This calculator is for educational purposes only and does not constitute financial, tax, or investment advice. It models a constant return, the employer match, and IRS limits indexed forward from verified 2026 figures by your COLA assumption; it does not model withdrawal taxes or the Roth catch-up rule for high earners. Future COLA is an assumption, not a guarantee.