401(k) Tax Savings Calculator
See what a traditional 401(k) contribution really costs after the income tax it saves.
Frequently asked questions
How much can I contribute to a 401(k) in 2026?
The IRS limit for employee contributions is $24,500 in 2026. If you are 50 or older you can add a $8,000 catch-up, and if you are 60 to 63 the catch-up is $11,250 instead. The calculator caps your contribution at the limit for your age.
Does a 401(k) really reduce my take-home pay by the full amount?
No. A traditional 401(k) contribution comes out of your paycheck before income tax, so you pay less federal and often less state income tax. A $1 contribution usually lowers take-home pay by less than $1. Social Security and Medicare are still owed on the contributed pay.
Which states tax 401(k) contributions?
Pennsylvania and New Jersey tax 401(k) contributions as wages, so only federal tax is saved there. Most other states follow the federal treatment.
Does this include my employer match?
No. Matching contributions go into your account on top of your own contribution and do not change your take-home pay.
2026 limits per IRS Notice 2025-67. Estimates only, assuming one earner. Roth contributions do not reduce income tax today and are not covered.