Employee Contributions
Money you elect to defer from your paycheck into the retirement plan.
Explore contribution percentages →
401k Calculator & Guide
Your 401(k) contribution is money directed into your workplace retirement plan. Learn how employee contributions, employer contributions, contribution percentages, limits and catch-up contributions fit together.
A contribution is money paid into a retirement plan by an employee, employer or both. In a 401(k), employees commonly make contributions through payroll deductions.
When you choose a contribution percentage, your employer's payroll system generally directs that portion of eligible compensation into your 401(k) account.
Your employer may also contribute under the terms of the plan. The account can then be invested in the investment options offered by the plan.
See how a 401(k) works →Your total retirement account can receive different types of contributions, depending on the design of your plan.
Money you elect to defer from your paycheck into the retirement plan.
Explore contribution percentages →Money your employer may add through matching or other contribution arrangements.
Explore employer matching →Additional employee contributions that may be available when you reach the applicable age.
Learn about catch-up contributions →Some plans allow additional after-tax contributions separate from traditional pre-tax deferrals and Roth contributions.
Explore after-tax contributions →If your plan offers a designated Roth account, you can make Roth elective deferrals subject to applicable rules.
Explore Roth contributions →Employee deferrals are generally deposited from payroll according to the employer's payroll and plan procedures.
See how contributions work →A contribution percentage determines how much of your eligible compensation is directed into the plan through payroll.
These examples illustrate how changing the percentage can change the amount contributed. They are not recommendations.
Suppose an employee earns $80,000 in eligible annual compensation. The dollar contribution changes as the contribution percentage changes.
Actual payroll deductions can differ depending on compensation definitions, pay frequency, plan rules and annual contribution limits.
Calculate your own contribution →Federal rules place annual limits on employee elective deferrals and on total contributions to a defined contribution plan.
This is the 2026 basic elective deferral limit for traditional and safe harbor 401(k) plans, subject to applicable rules and plan restrictions.
Employee elective deferrals, catch-up contributions and overall annual additions are governed by separate rules. Your plan may also impose a lower contribution limit.
Limits are subject to applicable compensation, plan and tax rules. Always check the current IRS guidance.
401(k) plans can permit additional elective deferrals for participants who meet the applicable age requirements.
Participants who are age 50 or older by the end of the calendar year may generally make catch-up contributions if the plan permits them.
Catch-up contribution guide →A higher catch-up limit applies to eligible participants age 60 through 63 under current SECURE 2.0 rules.
Contribution limits by age →Catch-up contributions are an additional contribution opportunity, not a requirement to participate in a plan.
Calculate retirement savings →The tax treatment and rules can differ depending on the type of contribution your plan permits.
Traditional elective deferrals are generally made before federal income tax is applied to the deferred amount. Tax generally applies when taxable distributions are made.
Designated Roth contributions are included in gross income when contributed. Qualified distributions can generally receive tax-free treatment.
Some plans allow additional after-tax employee contributions beyond traditional pre-tax and designated Roth contributions. Availability depends on the plan.
Contribution type can affect current taxation, future distributions and the way your retirement savings are treated. Always check which options your plan actually offers.
Employer contributions can take several forms and are governed by the specific plan's terms.
An employer can contribute based on an employee's elective deferrals according to a specified matching formula.
Understand employer matching →A plan may provide employer contributions to eligible participants without requiring the employee to make elective deferrals.
Employer contributions →Employer contributions can be subject to a vesting schedule, depending on the type of plan and contribution.
Understand vesting →Enter your salary and contribution percentage to estimate your annual, monthly and per-paycheck contribution.
Go deeper into limits, contribution rates, catch-up rules and employer contributions.
Estimate your annual, monthly and per-paycheck contribution and explore how employer contributions could affect the total.
Educational Disclaimer: 401k.blog provides general educational information about 401(k) plans and retirement planning. This content is not individualized financial, investment, tax or legal advice. Contribution limits, plan features and tax treatment can change and may differ by plan. Review your plan documents and current IRS guidance for applicable rules and consult a qualified professional when appropriate.
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