401(k) Contribution Effects on Your Paycheck Calculator
Your proposed retirement savings: |
Filing status and withholding: |
Retirement plan information: |
Contributing RETIREMENT_PERCENT2 instead of RETIREMENT_PERCENT1 could increase your retirement savings by DOLLARS_DIFFERENCE. |
Contributing RETIREMENT_PERCENT1 instead of RETIREMENT_PERCENT2 reduces your paycheck by DOLLARS_NEG_DIFFERENCE. |
This is the percentage of your annual salary you contribute to your 401(k) plan each year. While your plan may not have a deferral percentage limit, this calculator limits deferrals to 75% to account for FICA (Social Security and Medicare) taxes. This rule may not apply to all plans.
This is the new percentage of your annual salary you would like to compare your current 401(k) contributions to.
Your annual 401(k) contribution is subject to maximum limits established by the IRS. For 2025, the maximum contribution for this type of plan is $23,500 per year for individuals under age 50. For individuals age 60 to 63 the limit is $34,750. For all other individuals age 50 or older the limit is $31,000. Employer contributions do not count toward the IRS annual contribution limit.
Employees classified as "Highly Compensated" may be subject to additional limits based on their employer's overall 401(k) participation. If you expect your salary to be $160,000 or more in 2025 or was $155,000 or more in 2024, you may need to contact your employer to see if these additional contribution limits apply to you.
While your plan may not have a deferral percentage limit, this calculator limits deferrals to 75% to account for FICA (Social Security and Medicare) taxes. This rule may not apply to all plans.
This is your gross pay, before any deductions, for one pay period. Please enter a dollar amount from $1 to $1,000,000.
This is how often you are paid. Your selections are:
This is your income tax filing status. The choices are "Single", "Married" and "Head of Household." Choose "Married" if you are married, "Head of household" if you are unmarried with dependent children, "Single" if you file your taxes as a single person or if you are married but file separately.
This is the percentage that will be deducted for state and local taxes. The tool multiplies your calculated taxable income by this rate to estimate your state and local taxes. Please note, this calculator can only estimate your state and local tax withholding. The tax rate displayed is an assumption that may or may not be relevant to your situation.
Enter any payroll deductions made by your employer that are made with pre-tax income. This might include your health insurance and/or life insurance, among other pre-tax deductions.
Enter any payroll deductions made by your employer that are made with after-tax income.
Enter any reimbursements made by your employer that are after-tax.
The expected annual increase in your salary. The tool uses this to project future contributions and matches to your savings plan.
Income from your employer that you have been paid during the current year, before the current payroll period. The tool uses this amount to determine if you are still required to pay FICA OASDI for the current payroll period.
For 2025, Social Security tax is calculated as your gross earnings times 6.2%. For 2025, incomes over $176,100 that have already had the maximum Social Security tax of $10,918.20 withheld will not have additional withholding. Please note that if you have other wages or employers this calculator does not make any assumptions as to the total Social Security tax withheld for the current year other than the actual inputs for this calculator. This tax is also referred to as the Federal Insurance Contributions Act Old Age Survivors and Disability Insurance (FICA OASDI).
Medicare tax is calculated as your gross earnings times 1.45%. Unlike the Social Security tax, there is no annual limit to the Medicare tax. Starting in 2013, an additional Medicare tax of 0.9% is withheld on all gross earnings paid in excess of $200,000 in a calendar year. If you enter an amount for the year-to-date gross earnings, this additional Medicare tax will be calculated based on the current period's gross earnings that exceed the annual $200,000 threshold. If no year-to-date amount is entered, any additional Medicare tax withholding will be calculated only for any gross earnings in excess of $200,000 for the current payroll period. If year-to-date wages prior to the current payroll period have exceeded $200,000, the year-to-date wages must be entered to calculate an accurate additional Medicare tax.
2025 Federal income tax withholding calculation:
| Annual taxable income between these amounts | Annual withholding | Withhold additional % of income over this amount |
|---|---|---|
| $0 - $6,400 | $0.00 | |
| $6,400 - $18,325 | $0.00 | plus 10% of income over $6,400 |
| $18,325 - $54,875 | $1,192.50 | plus 12% of income over $18,325 |
| $54,875 - $109,750 | $5,578.50 | plus 22% of income over $54,875 |
| $109,750 - $203,700 | $17,651.00 | plus 24% of income over $109,750 |
| $203,700 - $256,925 | $40,199.00 | plus 32% of income over $203,700 |
| $256,925 - $632,750 | $57,231.00 | plus 35% of income over $256,925 |
| $632,750 - (no limit) | $188,769.75 | plus 37% of income over $632,750 |
| *Source: http://www.irs.gov Publication 15 Income Tax Withholding Tables for 2025 | ||
| Annual taxable income between these amounts | Annual withholding | Withhold additional % of income over this amount |
|---|---|---|
| $0 - $17,100 | $0.00 | |
| $17,100 - $40,950 | $0.00 | plus 10% of income over $17,100 |
| $40,950 - $114,050 | $2,385.00 | plus 12% of income over $40,950 |
| $114,050 - $223,800 | $11,157.00 | plus 22% of income over $114,050 |
| $223,800 - $411,700 | $35,302.00 | plus 24% of income over $223,800 |
| $411,700 - $518,150 | $80,398.00 | plus 32% of income over $411,700 |
| $518,150 - $768,700 | $114,462.00 | plus 35% of income over $518,150 |
| $768,700 - (no limit) | $202,154.50 | plus 37% of income over $768,700 |
| *Source: http://www.irs.gov Publication 15 Income Tax Withholding Tables for 2025 | ||
| Annual taxable income between these amounts | Annual withholding | Withhold additional % of income over this amount |
|---|---|---|
| $0 - $13,900 | $0.00 | |
| $13,900 - $30,900 | $0.00 | plus 10% of income over $13,900 |
| $30,900 - $78,750 | $1,700.00 | plus 12% of income over $30,900 |
| $78,750 - $117,250 | $7,442.00 | plus 22% of income over $78,750 |
| $117,250 - $211,200 | $15,912.00 | plus 24% of income over $117,250 |
| $211,200 - $264,400 | $38,460.00 | plus 32% of income over $211,200 |
| $264,400 - $640,250 | $55,484.00 | plus 35% of income over $264,400 |
| $640,250 - (no limit) | $187,031.50 | plus 37% of income over $640,250 |
| *Source: http://www.irs.gov Publication 15 Income Tax Withholding Tables for 2025 | ||
Choose the type of plan your employer sponsors. Choices include an option for pre-tax ("traditional" contributions) and after-tax ("Roth" contributions).
The current balance of your retirement plan.
Your current age.
Age at which you plan to retire. This calculator assumes that the year you retire, you do not make any contributions to your 401(k). For example, if you retire at age 65, your last contribution occurs when you are actually 64.
This is the annual rate of return you expect from your retirement account. The actual rate of return is largely dependent on the types of investments you select. The Standard & Poor's 500® (S&P 500®) for the 10 years ending December 31st 2023, had an annual compounded rate of return of 15.2%, including reinvestment of dividends. From January 1, 1970 to December 31st 2023, the average annual compounded rate of return for the S&P 500®, including reinvestment of dividends, was approximately 10.9% (source: www.spglobal.com). Since 1970, the highest 12-month return was 61% (June 1982 through June 1983). The lowest 12-month return was -43% (March 2008 to March 2009). Savings accounts at a financial institution may pay as little as 0.25% or less but carry significantly lower risk of loss of principal balances.
It is important to remember that these scenarios are hypothetical and that future rates of return can't be predicted with certainty and that investments that pay higher rates of return are generally subject to higher risk and volatility. The actual rate of return on investments can vary widely over time, especially for long-term investments. This includes the potential loss of principal on your investment. It is not possible to invest directly in an index and the compounded rate of return noted above does not reflect sales charges and other fees that investment funds and/or investment companies may charge.
The percentage of your annual 401(k) contributions your employer will match. These contributions are often capped. Please read the definition for "Employer maximum" for more information. Also note employer contributions do not count toward the IRS annual contribution limit.
Matching contributions can also be subject to a vesting schedule. See your plan information for details.
This is the maximum percent of your salary matched by your employer, regardless of the amount you decide to contribute.
For example, let's assume your employer provides a 50% 401(k) contribution match on up to 6% of your annual salary. If you have an annual salary of $100,000 and contribute 6%, your contribution will be $6,000 and your employer's 50% match will be $3,000 ($6,000 x 50%), for a total of $9,000. If you only contribute 3%, your contribution will be $3,000 and your employer's 50% match will be $1,500, for a total of $4,500.
If you increase your contribution to 10%, you will contribute $10,000. Your employer's 50% match is limited to the first 6% of your salary then limits your employer's contribution to $3,000 on a $100,000 salary. The total 401(k) contribution from you and your employer would therefore be $13,000.