US Retirement - 2026 IRS Limits
401(k) Calculator
Plan your 401(k) with 2026 IRS limits built in: max out your $24,500 deferral, capture the full employer match, and see your projected retirement balance. Free, no sign-up.
1. Nominal APY vs. Real Post-Inflation Yield
A common pitfall in yield farming and staking is prioritizing high nominal APY percentages without factoring in baseline network token inflation. For instance, if a network offers 14% nominal staking rewards but dilutes circulating supply by 10% annually, your real purchasing power expansion is only ~3.6%.
2. Liquid Staking Derivatives (LSTs) & Capital Efficiency
Liquid staking protocols (such as Lido stETH, Rocket Pool rETH, and JitoSOL) allow institutional participants to maintain yield generation while retaining liquidity for DeFi lending and liquidity provision. However, LSTs introduce smart contract and depeg risk that must be modeled into portfolio variance.
How the 401(k) Calculator Works
A 401(k) lets US workers save for retirement with major tax advantages. For 2026 the IRS sets the employee elective deferral limit at $24,500 (IRS Notice 2025-67). Workers 50 and older get an $8,000 catch-up ($32,500 total); ages 60-63 get a super catch-up of $11,250 ($35,750 total). Including employer contributions, the overall 2026 cap is $72,000.
The employer match is free money
A typical match — 50% of your contributions up to 6% of salary — is an instant 50% return. On a $100,000 salary contributing 10% ($10,000), a 50%-to-6% match adds $5,000 a year. At 7% returns over 30 years, that $15,000/year becomes about $1.42 million. Always contribute at least enough to capture the full match before investing anywhere else.
Pre-tax vs Roth
Pre-tax contributions cut this year's tax bill; Roth contributions are after-tax but grow tax-free. New for 2026: workers 50+ whose 2025 wages exceeded $150,000 must make catch-up contributions as Roth. Your regular deferrals can still be pre-tax, Roth, or a mix.
What the projection assumes
The calculator compounds your total annual investment at your expected return. Real markets do not move in straight lines — treat the projection as a planning anchor, not a promise. See our retirement calculator for the drawdown side of the plan.
401(k): Frequently Asked Questions
What is the 401(k) contribution limit for 2026?
$24,500 in employee deferrals. Age 50+: $32,500 with the $8,000 catch-up. Ages 60-63: $35,750 with the $11,250 super catch-up. Total with employer contributions: $72,000.
Should I choose pre-tax or Roth 401(k)?
Pre-tax wins if you expect a lower tax rate in retirement; Roth wins if you expect higher rates or want tax-free withdrawals. In 2026, high earners 50+ (2025 wages over $150,000) must make catch-ups as Roth.
What happens if I contribute too much?
Excess deferrals must be withdrawn and are taxable. Most payroll systems stop deductions automatically at the IRS cap.
Can I change my contribution rate during the year?
Yes — most plans let you adjust your deferral percentage at any time, though some limit changes to set windows.
How does the employer match work?
Your employer adds a percentage of what you contribute, up to a cap — e.g. 50% match up to 6% of salary. It is part of your compensation; leaving it unclaimed is leaving salary on the table.