401(k) Contribution & Match Calculator 🌎

What is a 401(k) employer match?

A 401(k) employer match is compensation your employer pays directly into your retirement account, contingent on you contributing first. It is, in plain terms, free money — but only if you defer enough of your own salary to trigger the match. The most common US formula is 100% up to 6% of salary, meaning a $80,000 employee deferring 6% ($4,800) collects another $4,800 from the employer. Fail to hit 6% and the unused match is forfeited; there is no carry-forward in most plans.

2026 IRS Limits at a Glance

Worked Examples

Example 1 — $80,000 salary, 50%-up-to-6% match. Employer pays $0.50 for every $1 the employee defers, on up to 6% of salary. Maximum match = $80,000 × 6% × 50% = $2,400. To capture it the employee must defer at least 6% = $4,800. Going below 6% (say 4%) yields only $1,600 in match and forfeits $800 permanently.

Example 2 — $200,000 salary, 100%-up-to-4% match. Employer pays dollar-for-dollar on the first 4%. Maximum match = $200,000 × 4% = $8,000 ($9,200 if salary were higher, but cap applies). The employee hits the $24,500 IRS limit at a deferral rate of just 12.25%, so contributing the full match (4% = $8,000) plus an additional 8% to max out leaves room before December. Watch out: if you front-load and hit $24,500 in October, every paycheck after stops your deferral — and most plans stop the match too unless they have a true-up provision.

Example 3 — Mega Backdoor Roth. Some plans (often at large tech employers) allow after-tax contributions above the $24,500 elective deferral cap, up to the §415(c) combined limit of $72,000. A $150,000 earner with a 5% match ($7,500) could potentially contribute $24,500 elective + $7,500 match + $40,000 after-tax = $72,000, then convert the after-tax portion to a Roth IRA in-plan. Confirm with your plan administrator.

True-Up Provisions

If you front-load contributions and hit the $24,500 cap mid-year, you may miss out on match in the remaining paychecks because you can't defer anymore. True-up provisions require the employer to reconcile at year-end and pay any match you would have received under a steady-paycheck contribution schedule. Vanguard's 2025 report found roughly 50% of plans have a true-up. If yours doesn't, spread contributions evenly across all 26 pay periods.

Vesting Schedules

Your own deferrals are 100% yours immediately. The employer match, however, may vest over time:

Check your Summary Plan Description (SPD) — vesting is one of the most misunderstood parts of 401(k) benefits.

SECURE 2.0 — What Changed for 2026

Profit Sharing on Top

Match is not the only employer contribution. Profit sharing — discretionary, declared annually — counts against the $72,000 §415(c) combined limit alongside match and your deferrals. Some employers contribute 3–5% of salary as profit sharing regardless of whether you defer, making the effective compensation higher than the base offer.

Formulas Used

employee_raw = annual_salary × (employee_rate / 100)
irs_limit = 24,500 (under 50) | 32,500 (50+) | 35,750 (60–63)
employee_contribution = min(employee_raw, irs_limit)
eligible_rate = min(employee_rate, match_cap)
employer_match = annual_salary × (eligible_rate / 100) × (match_rate / 100)
total_contribution = employee_contribution + employer_match
year_end_balance = current_balance × (1 + r) + total_contribution × (1 + r/2)

The (1 + r/2) mid-year factor reflects that contributions are spread across pay periods rather than deposited on January 1.

When NOT to Rely Solely on This Calculator

What changed in 2026 (vs 2025)

The IRS raised most retirement plan limits for 2026 in Notice 2025-67 (the 2025 figures come from Notice 2024-80). If you maxed out in 2025, you have an extra $1,000 of deferral room this year — $1,500 extra if you're 50 or older.