How Much Should I Contribute to My 401(k)? A Guide by Age and Salary

At minimum, contribute enough to get your full employer match — anything less is leaving free money on the table. A typical match of 50% on the first 6% of salary means if you earn $75,000 and contribute 6% ($4,500), your employer adds $2,250. Not contributing that 6%? You are declining a $2,250 annual raise.

The 2026 401(k) contribution limit is $24,000 for those under 50 and $31,500 for those 50 and older (includes $7,500 catch-up). The target contribution rate depends on your age: in your 20s, aim for 10 to 15% of gross including employer match. In your 30s: 15 to 20%. In your 40s: 20 to 25%. In your 50s: max it out if possible ($31,500).

The compound growth difference between 10% and 15% contribution is enormous. On a $75,000 salary with 3% annual raises, starting at age 30 and contributing 10% ($7,500/year) at 7% return produces approximately $1,100,000 by 65. At 15% ($11,250/year): $1,650,000. That extra 5% of salary — $312 per month — grows to an additional $550,000 over 35 years. Use the [compound interest calculator](/calculators/compound-interest) to model your specific scenario.

Traditional vs Roth 401(k): if you expect higher taxes in retirement, choose Roth (pay taxes now, withdraw tax-free). If you are in a high bracket now and expect lower in retirement, choose Traditional (deduct now, pay taxes later). Under 35 earning less than $100K? Roth is usually better. Over 50 earning $150K+? Traditional usually wins. Use the [retirement gap calculator](/calculators/retirement-gap) to see if your current contribution rate reaches your target. For more on retirement benchmarks, read our guide on [saving enough for retirement](/blog/saving-enough-for-retirement).

Frequently Asked Questions:

Is 6% enough for retirement? Only if your employer matches generously. 6% with a 50% match gives you 9% total — below the recommended 15%. Increase by 1% per year.

Should I max my 401(k) before investing elsewhere? Get the full match first, then max a Roth IRA ($7,500), then increase 401(k) toward the $24,000 limit.