401(k) Contribution Calculator 2026

401(k) Contribution Calculator: Paycheck Impact

A pre-tax 401(k) lowers your taxable income, so each dollar saved costs less than a dollar of take-home. Enter your salary and contribution rate to see the real cost and your employer match.

● 2026 limit $24,500 ● Lowers taxable income ● Employer match included

💰 Your 401(k)

The pre-tax advantage

Why a 401(k) costs less than you think

A traditional 401(k) contribution comes out of your paycheck before income tax. So if you are in the 22% bracket, every $100 you contribute reduces your take-home by only about $78 — the other $22 would have gone to the IRS anyway. The calculator shows that real out-of-pocket cost.

2026 contribution limits

Limit type	2026 amount
Employee elective deferral	$24,500
Catch-up (age 50+)	+$7,500
Total (employee + employer)	$72,000

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Always capture the full match: An employer match is an instant 50–100% return. If your company matches 3% of pay, contributing at least 3% is free money you should never leave on the table.

Note on FICA

Pre-tax 401(k) contributions lower income tax but not Social Security and Medicare — FICA is still calculated on your full gross. To see your full paycheck with a deferral applied, use our gross-to-net calculator.

401(k) Contribution Calculator FAQ

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

The 2026 employee elective deferral limit is $24,500, with an additional $7,500 catch-up if you are 50 or older. The combined employee-plus-employer limit is $72,000.

How much does a 401(k) lower my taxes?

A traditional 401(k) reduces your taxable income dollar-for-dollar, so your tax saving equals your contribution times your marginal rate. In the 22% bracket, a $6,000 contribution saves about $1,320 in federal income tax. It does not reduce Social Security or Medicare tax.

Should I contribute enough to get the full match?

Yes. An employer match is effectively free money and an immediate return on your contribution. Most advisors recommend contributing at least enough to capture the full match before saving elsewhere.

Does a 401(k) reduce FICA tax?

No. Pre-tax 401(k) contributions lower federal and usually state income tax, but Social Security (6.2%) and Medicare (1.45%) are still calculated on your full gross wages.