401k contribution calculator - 2026
Enter your salary, contribution rate, and employer match to see your projected retirement savings
| 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.
New Mexico 401k and retirement tax guide - 2026
How New Mexico taxes 401k contributions and retirement distributions
New Mexico retirement tax overview
New Mexico offers a modest pension exemption and lower income tax rates apply to some retirement income. New Mexico's lower cost of living helps retirement savings last longer.
New Mexico exempts up to $8,000 of pension income per person from state taxes. New Mexico's relatively lower cost of living compared to neighboring western states extends the value of retirement savings.
Federal 401k rules that apply in New Mexico
Regardless of New Mexico 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 New Mexico retirement situation.