You probably already know: Retirement is expensive. Luckily, there are retirement accounts, such as the 401(k) you may have access to as an employer benefit, that can help you save for retirement—and get a tax break at the same time.
But how much should you contribute to your 401(k)? If retirement is years or even decades away, it can be hard to figure out what you may need. Although everyone's financial situation is unique, here are some general guidelines to consider when figuring out how much to contribute to your 401(k).
How much should you contribute to your 401(k)?
Fidelity's guideline is to work up to saving 15% of your pretax income each year for retirement, including any employer contributions. The 15% retirement savings goal can also include contributions you make to an IRA.
If your employer helps you save for retirement, they might do so by contributing a set amount or percentage of your salary no matter what you contribute to your 401(k). They may also help you save by contributing what's called a 401(k) match. That's when your company contributes only when you do. Generally, companies use a formula like putting in 50 cents or $1 for every dollar you do, up to a certain percentage of your salary. If your employer offers a 401(k) match, it's a smart idea to prioritize saving at least enough in your 401(k) to get that full amount.
Pay attention to vesting requirements. For example, your employer may stipulate that you remain an employee for a set period of time before any or all of the 401(k) match becomes yours. If you change jobs before the end of the vesting period, you won't get to walk away with all of your employer's contributions in your 401(k).
Why 15%?
This guideline is based on research finding that most people need between 55% to 80% of their preretirement income to maintain their current standard of living in retirement. Not all of it needs to come from your savings; some may come from Social Security. That, combined with saving 15% each year from age 25 to 67 should help you reach that level of income replacement.
Of course, that 15% retirement savings goal may vary based on your financial situation and depends on some key choices you make before retirement, such as when you start saving and when you plan to retire. Those who start saving for retirement earlier, for example, may be able to save less, while those who start later may need to save more each year to catch up.
You also may be able to save less than 15% each year if you know you'll have other retirement income sources, like a pension. If you anticipate having a higher or lower standard of living in retirement, you may need to save more—or less. Figuring out the right amount to save for retirement can get complicated as situations become more complex. You may want to meet with a financial professional to figure out how much you personally should be saving for retirement overall and in your 401(k).
Get an estimate of where you stand for retirement using the Fidelity Retirement ScoreSM
How much can you contribute to your 401(k)?
Every year the IRS sets the max that you and your employer can contribute to your 401(k).In 2026, you can contribute up to $24,500 pre-tax or Roth to your 401(k). Some plans may allow after-tax contributions up to the combined employee and employer limit of $72,000. If you're at least age 50 at the end of the calendar year, you can add a pre-tax or Roth catch-up contribution of $8,000 (or $11,250 if age 60–63, if your plan allows).
According to the SECURE 2.0 Act's higher earner rule, in 2026, catch-up contributions for earners whose FICA wages (typically Box 3 of Form W-2) exceed $150,000 in the previous tax year, must be designated as Roth after-tax contributions.
If your employer's plan does not offer a Roth contribution feature and you fall under the high-earner rule, you won't be able to make catch-up contributions to that plan.
You can contribute to a 401(k) no matter what your yearly income is. But, your plan sponsor can only consider the first $360,000 of your yearly income when calculating their employer contribution amount for 2026.
What happens if you contribute too much to your 401(k)?
There are usually controls in place to keep you from contributing too much to a company retirement plan. But if you've changed jobs this year or have access to multiple workplace plans, you'll want to stay on top of how much you save in a 401(k) each year. Contributing too much can lead to paying additional tax. If you aren't sure of your tax liability, make sure to consult a tax professional.
If you overcontribute, you may request excess contributions (and anything they earned) be returned by Tax Day each year. You should also receive a modified W-2 that reflects that change in income.
How to get the most out of your 401(K)
Consider these 3 steps to help you save more (and smarter) for retirement.
1. Contribute early. If you start saving in your 401(k) early on and keep that money invested over the long term, you could benefit from compound returns, which is when your investment returns earn returns of their own. Compound returns can potentially help your savings grow exponentially—helpful when saving for a major goal like retirement.
2. Start small if you have to, and go for the match. Saving 15% of your pretax salary can seem intimidating when you're first getting started with saving for retirement. After all, you might already be working on another savings goal, like paying down debt or saving for a house down payment. But starting to contribute even small amounts as soon as you're able has the potential to add up in the long run. And it can help to establish a good habit. If your company offers a match, aim to contribute at least enough each year to get the full amount offered. Every dollar your company saves for you is one you don't have to save for yourself.
3. Keep track of your 401(k)s. It's not uncommon for people to lose track of their retirement plans over time, especially if you work for multiple employers during your career. Keep a record of your retirement accounts to make sure you're not accidentally leaving any savings behind. And remember that you have options for how to handle your old 401(k)s.