401(k) Employer Match & Roth vs. Traditional IRA Calculator

401(k) vs Roth IRA Calculator 2026: Max Your Employer Match & Pick the Right Account

Your employer offers a 401(k) match — "50% of the first 6%" — and you have no idea what that means in dollars. Here it is: if you earn $80,000 and contribute 6% ($4,800), your employer adds $2,400. Free money. Yet 1 in 4 workers leaves match money on the table, collectively forfeiting billions yearly. The first rule of retirement accounts is brutally simple: contribute enough to capture the full match before doing anything else. Everything in this guide builds on that foundation.

Traditional vs Roth is the core decision, and it hinges on one question: will your tax rate be higher now or in retirement? Traditional 401(k)/IRA: deduct now, pay later — wins if you are in a high bracket today (32%+) and expect lower in retirement. Roth: pay now, withdraw tax-free later — wins if you are young, in a low bracket (12–22%), or expect higher future taxes. The honest answer for most people: split it. Contribute to Traditional 401(k) up to the match, then max Roth IRA ($7,000 in 2026, $8,000 if 50+), then return to the 401(k). This hedges against unknowable future tax rates.

The match math deserves precision because employers disguise it. "100% of first 3%, 50% of next 2%" on $100,000 salary: contribute 5% ($5,000), get $4,000 match — an instant 80% return before markets do anything. But vesting schedules matter: a 3-year cliff means leaving at year 2 forfeits all match money. And "true-up" provisions: if you max the 401(k) early in the year ($23,500 limit 2026), some employers stop matching — the true-up fixes this at year-end, but not all plans have it. The calculator models your specific match formula, vesting, and contribution pace.

Contribution limits for 2026: 401(k) $23,500 (+$7,500 catch-up at 50+, +$11,250 "super catch-up" ages 60–63); IRA $7,000 (+$1,000 at 50+); total with employer match capped at $70,000. Income phase-outs gate Roth IRA directly (single ~$150k–$165k) — above that, use the backdoor Roth (contribute to Traditional, convert immediately; the pro-rata rule applies if you hold pre-tax IRA money). HSA users: it is the stealth retirement account — triple tax advantage beats both 401(k) and Roth if you can pay medical costs out of pocket and let it grow.

Investment selection inside the accounts matters more than the account choice. Target-date funds (the default) are fine but often expensive (0.5–1% fees); a 3-fund portfolio (total US stock, total international, bonds) at 0.05–0.15% fees keeps tens of thousands more over 30 years. Fees compound against you exactly like returns compound for you: 1% annual fee on $500k over 30 years costs ~$300,000 versus 0.1%. The calculator projects growth at your assumed return minus fees — because the fee line is where retirements quietly leak.