Your 401(k) is likely the most powerful wealth-building tool available to you. With tax advantages, employer matching, and compound growth, it can turn consistent contributions into millions over your career.
2026 Contribution Limits
- Under 50: $24,500 per year ($903.85 per biweekly paycheck)
- 50 and older: $31,000 per year (includes $7,500 catch-up contribution)
- Combined employee + employer: $70,000 per year
The Power of Employer Match
If your employer matches 50% up to 6% of your salary, that's essentially a 3% raise you're leaving on the table if you don't contribute at least 6%. On a $75,000 salary, that's $2,250/year in free money.
Always contribute at least enough to get the full employer match. This is the closest thing to free money you'll ever get.
How Much Should You Save?
Financial advisors generally recommend saving 15-20% of your gross income for retirement (including employer match). If you can't afford that now, start with enough to get the full match and increase by 1% per year.
The Impact of Starting Early
Contributing $500/month from age 25 to 65 at 7% return = $1.2 million. Starting the same at age 35 = only $567,000. That 10-year head start doubles your wealth.
Project your own 401(k) growth with our 401(k) calculator that includes employer match calculations.