Does employer match count toward $23K limit?

No. Your $23K + employer match. Match is extra and does not count toward your contribution limit.

Traditional vs Roth 401(k)?

Traditional = tax break now, taxed later. Roth = after-tax contributions, tax-free growth and withdrawals.

How much do I save in taxes?

Tax savings = Contribution × (Federal + State rate). At 27% combined, $15K saves $4,050.

What is net cost of 401(k) contribution?

Net cost = Contribution - Tax savings. Your actual out-of-pocket is less than the contribution.

Can I contribute to both 401(k) and IRA?

Yes. 401(k) and IRA have separate limits. Max both if you can afford it.

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TAXRetirementFinance Calculator

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401(k) Contribution Impact — Tax Savings

See how pre-tax 401(k) contributions reduce your tax bill. Higher bracket = more savings. Net cost is much less than contribution.

Calculate Tax Impact

Why This Matters for Your Finances

Why: Pre-tax contributions reduce taxable income. At 27% combined rate, $15K saves $4,050 — costs $10,950 out of pocket.

How: Tax Savings = Contribution × (Federal + State rate). Net Cost = Contribution − Tax Savings.

Sources:IRS — 401(k) Plans

Sample Scenarios

Income & Contribution

Gross SalaryAnnual salary

Your ContributionAnnual contribution

Employer MatchMatch amount

Federal Tax RateMarginal rate

State Tax RateState income tax

⚠️For educational and informational purposes only. Verify with a qualified professional.

💡 Money Facts

$23K

2024 limit

— IRS

$7.5K

Catch-up 50+

— IRS

50%

Typical match

— Common

Free

Match = free $

— Employer

1. Key Takeaways

• Pre-tax: Reduces taxable income — higher bracket = more savings
• Employer match: Free money — always maximize it
• Actual cost: Much less than contribution due to tax savings
• 2024 limit: $23,000 ($30,500 if 50+)

2. Did You Know?

Match = Instant Return

50% match = 50% instant return

Roth 401(k)

After-tax option in many plans

Tax Deferred

Pay taxes when you withdraw

Catch-Up

50+ can add $7,500 extra

Net Cost

Contribution minus tax savings

State Tax

Savings include state tax too

3. How It Works

Tax Savings = Contribution × (Federal + State rate). Net Cost = Contribution − Tax Savings. At 27% combined, $15K saves $4,050 — costs $10,950. Employer match is extra.

4. Expert Tips

Max match first

Free money — contribute to cap

Roth if young

Tax-free growth if low bracket

Catch-up at 50

Extra $7,500 if 50+

Compare total

Your $ + match = total value

5. Comparison Table

Contribution	22% Bracket	27% Bracket	32% Bracket
$6,000	$1,320 saved	$1,620 saved	$1,920 saved
$12,000	$2,640 saved	$3,240 saved	$3,840 saved
$23,000	$5,060 saved	$6,210 saved	$7,360 saved

6. FAQ

Does match count toward $23K?

No. Your $23K + employer match. Match is extra.

Traditional vs Roth?

Traditional = tax break now. Roth = tax-free growth, no break now.

When to use Roth 401(k)?

If you expect higher bracket in retirement or are young.

7. Sources

• IRS — 401(k) Plans
• IRS — Contribution Limits

8. Quick Stats