401(k) Tax Savings Calculator
See exactly how much you can save in taxes by increasing your retirement contributions. Find your optimal contribution level.
= $6,000 / year
Limit: $4,400 individual / $8,750 family
You Could Save $5,096 More in Taxes!
By increasing your 401(k) contribution from 6% to the maximum, you could reduce your annual tax bill significantly.
| Contribution | % of Income | Tax Savings | Take-Home | Eff. Rate |
|---|---|---|---|---|
$0 | 0.0% | $0 | $70,879 | 29.1% |
$3,000 | 3.0% | $837 | $68,833 | 28.2% |
$6,000Current | 6.0% | $1,674 | $66,786 | 27.2% |
$10,000 | 10.0% | $2,790 | $64,057 | 25.9% |
$15,000 | 15.0% | $4,167 | $60,627 | 24.4% |
$20,000 | 20.0% | $5,537 | $57,191 | 22.8% |
$24,500Max | 24.5% | $6,770 | $54,099 | 21.4% |
Max Out Employer Match
Always contribute enough to get the full employer match—it's free money!
Consider Roth 401(k)
If you expect higher taxes in retirement, Roth contributions may be better.
Increase Gradually
Bump up your contribution by 1% every few months until you hit your goal.
Don't Forget HSA
HSA contributions are triple tax-advantaged—use them if eligible!
How Retirement Contributions Change Your 2026 New York Tax Bill
A retirement contribution is the largest deduction most New York employees control without itemizing. Every dollar you defer from a traditional 401(k), 403(b), 457(b) or traditional IRA comes off your federal taxable income and your New York taxable income, so it is worth your combined marginal rate — which in New York City is well above the federal bracket on its own. It does not reduce Social Security and Medicare wages, so the FICA line in the results above does not move when you change the contribution slider.
2026 limits this calculator applies
| Account | Limit for 2026 | Notes |
|---|---|---|
| 401(k) / 403(b) / 457(b) employee deferral | $24,500 | Employer match is additional and does not count against this |
| Deferral plus age-50 catch-up | $32,500 | The 2026 catch-up is $8,000; ages 60–63 may use $11,250 instead |
| Traditional or Roth IRA | $7,500 | Roth eligibility phases out at higher incomes |
| IRA plus age-50 catch-up | $8,600 | $7,500 plus $1,100 catch-up |
| HSA, self-only coverage | $4,400 | Requires a qualifying high-deductible health plan |
| HSA, family coverage | $8,750 | Triple tax-advantaged: deductible, grows untaxed, tax-free qualified withdrawals |
| Social Security wage base | $184,500 | Above this, only Medicare tax applies to wages |
Contribution caps and the compensation limit they are based on are published each year by the IRS — see the 401(k) contribution limits and the annual COLA adjustments tables.
Why the same deduction is worth more in New York
A deduction is only worth the marginal rate it removes. In New York City a six-figure earner can be stacking a federal rate in the twenties or thirties on top of New York State tax, a city income tax and Medicare — so the same deferral can be worth half again as much as it would be in a state with no income tax. New York's rates and brackets, including the flat top bands, are published on the NYS tax rates and tables page. Our 2026 limits guide walks through each account in more depth, and the NY brackets guide shows where a given salary lands.
Traditional or Roth?
The calculator above adjusts a traditional deferral, because that is the only kind that changes this year's tax bill. A Roth contribution is made with money that has already been taxed: it lowers your future tax, not your current one, which is why the results above do not move when you elect it. The useful test is whether your retirement year will land in a lower bracket than this year — if you are in a high New York bracket now and expect to leave the state or drop brackets later, the traditional deduction is usually the better trade, and a Roth conversion in a low-income year is the mirror-image move. Read the 401(k) deduction guide before changing elections mid-year.
What this calculator does not model
Employer match amounts and vesting schedules, plan-level nondiscrimination limits that can cap a highly paid employee below the IRS maximum, state-specific retirement-income exclusions, and the 10% additional tax on early distributions before age 59½ are all outside the model. Confirm your plan's own limits with your administrator before setting a payroll election.
Sources: contribution limits — IRS 401(k) contribution limits and IRS COLA adjustments; New York rates — NYS tax rates and tables; Social Security wage base — SSA contribution and benefit base.