US 401(k) contribution rules & limits
Employees can elect to contribute up to $23,000 in 2024 ($23,500 in 2025) into a 401(k) or 403(b) account. Workers age 50 and over can make an additional $7,500 catch-up contribution.
Most US employers offer matching contributions (such as 50% match up to 6% of salary). Contributing pre-tax reduces federal and state taxable wages.
Worked example: 401(k) contribution and tax savings
An employee earning $75,000 contributing 6% ($4,500/yr or $375/mo) with a 50% employer match receives $2,250 in matching funds. In the 22% federal tax bracket plus 5% state tax, pre-tax savings save $1,215 in taxes, making the net cost just $274 per month.
Inputs for the us pension contribution calculator
Salary & Match Formulas
Enter your gross annual pay, your contribution percentage, and the employer match percentage.
CALCULATOR QUESTIONS
US pension contribution calculator questions
What is the vesting schedule for employer match?
Vesting schedules determine when you own employer contributions. Graded vesting typically takes 2 to 6 years, while cliff vesting grants 100% ownership after 3 years.