The 401k Guide: Match, Limits, and Growth
The single best retirement account most Americans have — here's how to use it.
The free money rule
An employer match is a guaranteed 50-100% return on day one. If your company matches 50% up to 6% of salary, contribute at least 6% — skipping it is leaving free money on the table.
2026 limits
The employee contribution limit is $23,500 for 2026 (catch-up of $7,500 for those 50+). Employer match does not count toward your limit, but total contributions cap around $70,000.
Roth or traditional?
Traditional lowers your tax bill today and taxes withdrawals later. Roth taxes now but grows tax-free forever. Most young earners benefit from Roth; most high earners benefit from traditional. A mix hedges against future tax changes.
What your contributions grow to
Your Results
Assumes monthly compounding. The 2026 401(k) contribution limit is $23,500 ($31,000 if 50+).
Frequently Asked Questions
Should I max out my employer match first?
Almost always yes — it's an instant 50-100% return on your contribution. Contribute at least enough to capture the full match before other investing.
What return should I assume?
A diversified stock-heavy 401(k) historically returns 7-10% annually. Use 6-7% for a conservative projection.
Related Calculators
Related tools
- Retirement Calculator — are you on track?
- RMD Calculator — what the IRS forces out later
- Investment Calculator — model the growth
- Investing Basics Guide