Retirement Contribution Tax Calculator

Pre-tax 401(k) and Traditional IRA contributions reduce current-year taxable income. Roth contributions don't — but distributions are tax-free in retirement. 2026 limits: $24,500 (401k) / $7,500 (IRA).

Annual W-2 wages

Traditional 401(k) contribution

2026 limit $24,500

Traditional IRA contribution

2026 limit $7,500, deduction phases out at higher incomes if covered by workplace plan.

Federal tax — no contribution

$15,370

Federal tax — with contribution

$10,970

Annual tax savings

$4,400

Effective marginal benefit

22.0%

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Roth dollars cost you taxes today but grow tax-free. Compare with future expected marginal rate — Roth wins if you expect higher rates later, Traditional wins if lower.