How much of my salary should I contribute to my 401(k)?

At minimum, contribute enough to capture the full employer match — that's free money with an instant 50–100% return. From there, financial planners typically recommend 10–15% of gross salary across all retirement accounts (401k + IRA combined) to retire comfortably.

What's the employer match and how does it work?

Most employers match a portion of what you contribute, usually 50–100% of your contribution up to a salary cap (commonly 3–6%). Example: '100% match up to 6%' means if you contribute 6% of salary, the employer adds another 6%. Contributing less leaves free money on the table — every dollar you skip is a guaranteed 100% loss.

What is the SECURE 2.0 super catch-up contribution?

Starting in 2025, the SECURE 2.0 Act allows ages 60–63 to contribute an extra catch-up amount beyond the standard age-50 catch-up. For 2026, that means $34,750 total instead of $31,000. At age 64+, you revert to the standard catch-up of $31,000.

Should I contribute to a Traditional or Roth 401(k)?

Traditional reduces taxable income now (good if you're in a high bracket and expect lower retirement income). Roth pays tax now but withdrawals are tax-free (good if you expect higher future tax rates or want tax-free inheritance). Many planners recommend a mix to give yourself tax-bracket flexibility in retirement.

Can I have a 401(k) and an IRA?

Yes. The 2026 IRA limit ($7,000 under 50; $8,000 over 50) is separate from the 401(k) limit. High earners may have their Traditional IRA deduction phased out, but Roth IRA contributions or a 'backdoor Roth' conversion remain available regardless of 401(k) participation.

What happens to my 401(k) when I leave my job?

Four options: (1) leave it with the old employer if balance > $7,000; (2) roll into your new employer's 401(k); (3) roll into a Traditional IRA; (4) cash out (almost always the worst option — taxes + 10% penalty if under 59½). Rolling to an IRA gives the most investment flexibility, including the option of a Gold IRA for diversification.

Can I roll over my 401(k) to a Gold IRA?

Yes, after you separate from your employer (or sometimes via an in-service rollover after age 59½). The process is a direct trustee-to-trustee transfer with no taxes owed. The 2026 contribution limits don't apply to rollovers — you can move your entire 401(k) balance regardless of size.

How much will my 401(k) be worth at retirement?

Use this calculator's projection. Common assumptions: 7% nominal return (S&P 500 long-term average), 3% annual salary growth. A 35-year-old earning $80k who contributes 10% with a 50% match up to 6% can expect roughly $1.5M–$2M at age 65, depending on returns.

What if I can't afford to max out my 401(k)?

The priority order is: (1) capture the full employer match, (2) pay off high-interest debt, (3) build a 3–6 month emergency fund, (4) max out a Roth IRA ($7,000), (5) increase 401(k) toward the IRS limit, (6) HSA if eligible. Skipping the match is the only universally-bad choice.

What's the average 401(k) balance by age in 2026?

Per Vanguard's 'How America Saves 2024' report and projected to 2026: ages 25–34 average $42k (median $17k); 35–44 average $103k (median $40k); 45–54 average $185k (median $73k); 55–64 average $248k (median $90k); 65+ average $272k (median $89k). Most Americans are well behind the 'recommended' multiples (1× salary by 30, 3× by 40, 6× by 50, 10× by 67).

Is 10% enough to contribute to a 401(k)?

10% is the floor most planners recommend; 15% is the target if you started in your 20s, and 20–25% if you started later or want to retire early. Add the employer match on top of your personal contribution rate — a '6% personal + 6% match = 12% effective' setup is decent but still likely shy of 15% all-in.

What's the 401(k) contribution limit for 2026 vs 2025?

2026: $23,500 base / $31,000 with age-50 catch-up / $34,750 with age 60–63 super catch-up. 2025: $23,500 / $31,000 / $34,750 (the IRS held the limit flat year-over-year due to soft inflation). Combined employer + employee limit in 2026: $70,000 base / $77,500 / $81,250.

Can I max out a 401(k) and a Roth IRA in the same year?

Yes — they're separate limits. Total possible for someone under 50 in 2026: $23,500 401(k) + $7,000 Roth IRA = $30,500. Over 50: $31,000 + $8,000 = $39,000. Roth IRA has income phase-outs ($150k–$165k single, $236k–$246k MFJ for 2026) — high earners use a 'backdoor Roth' to bypass.

Should I contribute to Traditional or Roth 401(k)?

Traditional if you're in a high tax bracket now and expect lower retirement income. Roth if you're in a low bracket now (early career) or expect higher future tax rates. Mixed strategy is common: high earners often split 70% Traditional / 30% Roth to give themselves bracket-arbitrage flexibility in retirement.

What is a mega backdoor Roth?

A strategy for high earners with after-tax contribution capacity in their 401(k). After maxing the regular $23,500 employee deferral, you contribute additional after-tax dollars (up to the $70,000 combined limit minus your employer match), then in-plan-convert to Roth. Can move $30k+ extra to Roth annually if your plan supports it.

What happens if I over-contribute to my 401(k)?

You must withdraw the excess (plus earnings) by April 15 of the following year. The excess is taxable in the year of original contribution; earnings are taxable in the year withdrawn. If not withdrawn timely, the excess is double-taxed (once now, once when eventually withdrawn). Most plans block over-contributions automatically, but switching jobs mid-year is a common cause.

Can I borrow from my 401(k)?

Most plans allow loans up to 50% of vested balance or $50,000, whichever is less. You repay yourself with interest (typically prime + 1%) over 5 years (longer for home purchase). Risks: if you leave the job, the loan is often due in full within 60–90 days, or it becomes a taxable distribution + 10% penalty if under 59½.

What's vesting and how does it affect my 401(k)?

Your own contributions are always 100% yours. Employer match may have a vesting schedule: 'cliff' (0% then 100% after 3 years) or 'graded' (20%/yr over 5–6 years). Leaving before fully vested forfeits the unvested match. Always check vesting before changing jobs.

Should I roll over an old 401(k) or leave it with the former employer?

Roll over if: (1) old plan has high fees, (2) limited investment options, (3) you want to consolidate, (4) you want access to physical gold (Gold IRA). Leave it if: (1) plan offers institutional share classes unavailable in IRAs, (2) you might want to access funds penalty-free at 55 (Rule of 55 only applies to current/most-recent employer plans), or (3) you have stock with NUA potential.

What's the Rule of 55?

If you separate from your employer in or after the year you turn 55, you can take penalty-free distributions from THAT employer's 401(k) — even though you're under 59½. Doesn't apply to rollovers (once you roll to an IRA, you lose Rule of 55 access). Useful for early retirees age 55–59.

Can I convert my 401(k) to a Gold IRA while still employed?

Sometimes. Many plans allow an 'in-service rollover' starting at age 59½ (some earlier for after-tax contributions). Below 59½ and still employed at the same company, you generally cannot move 401(k) money to an IRA. After separation, full rollover is always available.

401(k) Contribution Optimizer (1970) — Are You Missing the Match?

Calculate · 2026 IRS limits · Updated 1970

Are you maxing out your 401(k) the smart way?

See if you're capturing the full employer match, how close you are to the IRS limit, and what your balance will be at retirement.

Current age

Retirement age

Annual salary

Current 401(k) balance

Your contribution rate

0%6%50%

% of salary you contribute

Employer match rate

0%50%150%

e.g. 50% means $0.50 per $1 you contribute

Employer match cap

0%6%15%

Max % of your salary that earns a match

Expected annual return

3%7%10%

Nominal, before inflation

Annual salary growth

0%3%6%

Long-term US avg ~3%

✓ You're capturing the full employer match

Great work — your employer is adding $2,850/year on top of your own contributions. Next step: if you have room in your budget, raise your deferral rate gradually (even 1% a year) to work toward the 2026 IRS employee limit of $23,500. Before maxing the 401(k), consider funding a Roth IRA for tax diversification, building a 3–6 month emergency fund, and paying down any high-interest debt. Once those are handled, every extra dollar deferred lowers this year's taxable income and compounds tax-deferred until retirement.

Your contribution

$5,700

/year (6% of salary)

Employer match

$2,850

/year (free money)

IRS limit (Under 50)

$23,500

Headroom: $17,800

Three paths to retirement

See how each contribution strategy compounds to age 65.

Final balance — current path

$936,327

Recommended bump (+2%)

$1,041,208

+$104,881 more

Max out the IRS limit

$1,918,898

+$982,570 more

Already maxing out your 401(k)? Consider rolling a portion to a Gold IRA for diversification — see if you qualify with the Gold IRA Eligibility Quiz.

401(k) Contribution Optimizer — How It Works

This optimizer uses the official 2026 IRS contribution limits: $23,500 for employees under 50, $31,000 for ages 50–59 and 64+, and $34,750 for the SECURE 2.0 super catch-up window of ages 60–63. The applicable limit is automatically selected from your age input.

The employer match calculation respects both the match rate (e.g. 50% of contributions) AND the salary cap (e.g. up to 6% of salary). Free-money-on-the-table is the difference between what your employer would match if you contributed up to the cap and what they're matching now. This is by far the highest-leverage variable for most users.

Future-value projections use the closed-form geometric series for an annuity that grows at salary-growth rate g while the portfolio compounds at expected return r. The three scenarios — current, recommended (current + 2 percentage points up to the IRS limit), and max-out — share the same growth assumptions so the only difference is contribution discipline.

Frequently Asked Questions

$23,500 for employees under age 50. People age 50+ can add a $7,500 catch-up contribution for $31,000 total. Under SECURE 2.0, ages 60–63 get a 'super catch-up' of $34,750 total. The combined employee + employer limit is $70,000 ($77,500 with regular catch-up; $81,250 with super catch-up).

Gold IRA Blueprint|401(k) Contribution Optimizer

Are you maxing out your 401(k) the smart way?

Three paths to retirement

Diversify your 401(k) with physical gold for crash protection

401(k) Contribution Optimizer — How It Works

Frequently Asked Questions

How Gold IRA Blueprint Keeps This Tool Accurate