401(k)
Employee elective deferrals
$24,500per year
- Age 50+ catch-up+$8,000
- Ages 60–63 super catch-up+$11,250
Time does the heavy lifting
Watch a steady habit become a retirement balance.
A contribution is only the beginning. Give each dollar time to earn, reinvest, and earn again—and the growth can eventually outpace what you put in.
7%
Try the defaults first. They model a $625 monthly contribution from age 25 to 65 at a 7% annual return. Then make the plan yours.
Build your compounding picture
Adjust any input. The chart recalculates instantly.
$50$2,500
1%12%
1855
4075
Projected investing balance
$1,546,000
40 years
of monthly contributions
of monthly contributions
Your contributions
Estimated investment growth
Savings at 1% APY
What the balance is made of
Total contributed$300,000
Estimated growth$1,246,000
Same deposits, different engine
Saving holds the dollars. Investing gives them room to grow.
Both paths use the same monthly amount and timeline. Only the modeled return changes: your selected investing rate versus 1% APY for savings.
A savings account offers stability; investments add market risk in exchange for higher potential return. The right mix depends on when you need the money.
Modeled difference
The price of postponing
Ten extra years can matter more than a heroic sprint later.
Here’s the same monthly contribution and selected return, ending at your chosen retirement age. The only difference is whether contributions begin at 25 or 35.
Estimated cost of waiting until 35
The gap includes ten years of missed contributions—and decades of potential compounding on those earlier dollars.
2026 federal limits
Know the ceiling. Build the habit underneath it.
These are the employee contribution limits for the 2026 tax year. Eligibility, income limits, and plan rules can affect what applies to you.
Traditional + Roth IRA
Combined annual limit
$7,500per year
- Age 50+ catch-up+$1,100
- Monthly pace to reach base limit$625
The enhanced 401(k) catch-up for ages 60–63 replaces the standard catch-up; it does not stack on top of it. Employer contributions do not reduce the employee deferral limit, though a separate overall plan limit applies. See the official IRS 2026 limits
Quick answers
Contribution questions, without the fog.
Can I contribute to both a 401(k) and an IRA?
Generally, yes. Their contribution limits are separate. Your income and workplace-plan coverage can affect whether you may contribute directly to a Roth IRA or deduct a Traditional IRA contribution, so check the current eligibility rules before funding.
When are contributions due?
Employee 401(k) deferrals generally need to come from payroll during the calendar year, so plan changes should be made before your final 2026 pay periods. For most people, 2026 Traditional and Roth IRA contributions can be made through April 15, 2027. Your custodian should let you designate the tax year when contributing after January 1.
Roth or Traditional: what’s the tax trade-off?
Traditional contributions may reduce taxable income today when deductible, while withdrawals are generally taxed later. Roth contributions use after-tax dollars; qualified withdrawals can be tax-free. A Roth can look more attractive if you expect a higher future tax rate, while Traditional may be appealing if the deduction is valuable now and you expect a lower rate later. Many savers use both for tax flexibility.
Does contributing automatically mean my money is invested?
Not always. A deposit can sit in cash until you choose investments. Check your account’s holdings and, if available, set an investment election or recurring purchase—not just a recurring transfer.