401k contribution calculator - 2026

Enter your salary, contribution rate, and employer match to see your projected retirement savings

Annual salary ($)

Current age

Retirement age

Current 401k balance ($) Enter 0 if just starting

Your contribution rate: 6%

6%

= $0/yr - 2026 limit: $23,500

Employer match: 3%

3%

% of salary your employer matches

Employer match limit (% of salary) Employer matches up to this % of your salary

Expected annual return (%)

Estimated tax bracket

Projected balance
--
at retirement

Employer match value

--

total contributions

Annual tax savings

--

reduced taxable income

Take-home pay impact

--

less per paycheck

Projected 401k growth over time

Your contributions

Employer match

Investment growth

Category	Annual	Total at retirement
Your contributions	--	--
Employer match	--	--
Investment growth	--	--
Total projected balance	--	--

Projections assume constant contribution rates and investment returns. Actual returns vary and are not guaranteed. This calculator is for educational purposes only. Consult a financial advisor for personalized retirement planning advice.

Kentucky 401k and retirement tax guide - 2026

How Kentucky taxes 401k contributions and retirement distributions

4.0%

Kentucky income tax rate

${AVG_BALANCE:,}

Kentucky avg 401k balance

Age 62

Common retirement age

Kentucky retirement tax overview

Kentucky excludes up to $31,110 of pension and retirement income from state taxes. Kentucky's flat 4% tax rate and retirement exclusion make it moderately favorable for retirees.

Kentucky's $31,110 retirement income exclusion applies to various retirement income sources including 401k distributions. This exclusion significantly reduces Kentucky's effective retirement tax burden.

Federal 401k rules that apply in Kentucky

Regardless of Kentucky state tax treatment, federal rules govern 401k contribution limits. In 2026 the 401k contribution limit is $23,500 per year ($31,000 if age 50 or older with catch-up contributions). Traditional 401k contributions reduce your federal taxable income dollar-for-dollar in the year contributed. You pay ordinary income tax when you withdraw in retirement. Withdrawals before age 59.5 are subject to a 10% federal penalty plus income taxes unless an exception applies.

This guide is for general informational purposes. Tax laws change frequently. Consult a qualified financial advisor or tax professional for advice specific to your Kentucky retirement situation.

Frequently asked questions - 401k 2026

How much should I contribute to my 401k?

At minimum, contribute enough to get your full employer match - that is free money and an instant 50-100% return on your contribution. Beyond that, a common guideline is to save 15% of your income for retirement (including employer match). If you can't hit 15% immediately, start with the match and increase 1% per year until you reach your goal.

What is the 401k contribution limit for 2026?

The IRS limit for employee 401k contributions in 2026 is $23,500 per year. If you are age 50 or older, you can make an additional catch-up contribution of $7,500, bringing your total to $31,000. The combined limit including employer contributions is $70,000. These limits typically increase slightly each year with inflation.

What is an employer 401k match?

An employer match is when your company contributes money to your 401k based on what you contribute. A common match is 100% of your contributions up to 3% of your salary, or 50% up to 6% of your salary. If you don't contribute enough to capture the full match, you are leaving part of your compensation on the table. Always contribute at least enough to get the full employer match.

Traditional 401k vs Roth 401k - which is better?

Traditional 401k contributions are pre-tax - they reduce your taxable income now but you pay taxes when you withdraw in retirement. Roth 401k contributions are after-tax - you pay taxes now but withdrawals in retirement are tax-free. If you expect to be in a higher tax bracket in retirement, Roth may be better. If you expect a lower bracket, Traditional is usually better. Many financial advisors recommend splitting contributions between both.