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1. Shard Calculation

Query:

Response:

Calculated Shard: 155 (from laksa153)

2. Crawled Status Check

Query:

curl -X POST \
  'http://laksa155.int.ahrefs:8124/' \
  -H 'Content-Type: text/plain' \
  -H 'X-ClickHouse-Database: crawler3' \
  -H 'Authorization: Basic YXBpOg==' \
  -d 'SELECT getAhrefsURLFromUnparsed(src_unparsed) AS found_url, ifNull(toUnixTimestamp(download_stamp), 0) AS crawl_time, ifNull(toUnixTimestamp(props_url_first_seen), 0) AS first_indexed_time, download_http_code AS http_code, src_unparsed AS src_unparsed, src_root_hash AS src_root_hash, history_drop_reason AS history_drop_reason, meta_title AS meta_title, meta_descriptions AS meta_descriptions, attrs_boilerpipe_text AS attrs_boilerpipe_text, attrs_markdown AS attrs_markdown, attrs_readable_markdown AS attrs_readable_markdown, meta_canonical AS meta_canonical FROM crawler3.page_info_local FINAL PREWHERE (src_root_hash, src_unparsed) IN ((getAhrefsRootHashFromUnparsed(getAhrefsUnparsedNoserviceFromURL(\'https://smartasset.com/retirement/how-much-should-you-contribute-to-your-401k\')), getAhrefsUnparsedNoserviceFromURL(\'https://smartasset.com/retirement/how-much-should-you-contribute-to-your-401k\'))) FORMAT JSONEachRow'

Response:

{"found_url":"https:\/\/smartasset.com\/retirement\/how-much-should-you-contribute-to-your-401k","crawl_time":1776002275,"first_indexed_time":1510650260,"http_code":200,"src_unparsed":"com,smartasset!\/retirement\/how-much-should-you-contribute-to-your-401k s443","src_root_hash":"11868866246403654955","history_drop_reason":null,"meta_title":"How Much Should You Contribute to Your 401(k)?","meta_descriptions":["A 401(k) can help you build the retirement savings you need. The amount you should contribute to your 401(k) depends on these factors."],"attrs_boilerpipe_text":"Determining how much you should contribute to your\n401(k)\ndepends on factors like employer matching, tax benefits and personal financial goals. Some aim to contribute enough to maximize their employer match, while others strive to reach the annual IRS limit. A common recommendation is to allocate at least 10% to 15% of your salary, but individual circumstances, such as debt obligations and living expenses, play a role in setting the right percentage. Adjusting contributions over time can help balance retirement savings with short-term financial needs.\nDo you have retirement planning questions or need help saving?\nSpeak with a financial advisor who serves your area today\n.\nA\n401(k)\nis a retirement savings plan offered by many for-profit companies. These accounts allow you to decrease your current taxable income because you fund them with pre-tax dollars. Then, in retirement, you pay taxes on your withdrawals under the assumption that your tax rates will be lower as a retiree than they are now.\nHowever, it’s not a savings account, so your money doesn’t just sit and grow automatically. Your employer chooses some investment options, and then it is typically up to you to create a\nportfolio\nof market-reliant investments. In other words, like any other investment, 401(k)s do have plenty of risk associated with them.\nSaving between 10% and 15% of your gross salary toward retirement is a general rule of thumb to follow, but everyone’s situation is different. These savings could come in the form of a 401(k) or in another kind of account, like a\nRoth IRA\nor even a\ntraditional savings account\n.\nAgain, these percentages are just a general rule. The actual amount you should save depends on your situation. For example, if you are 50 years old and don’t have any retirement savings, you may need to save more than 20% of your gross annual salary to feel comfortable. If you’re 30 years old and already have $100,000 in retirement savings, you could probably decrease your contributions for a bit to\npay off a mortgage\nor loan should you have one. It’s difficult to create a one-size-fits-all plan because everyone is in a different place with his or her finances.\nSaving 10% to 20% of your salary every year might sound like a lot. Luckily, you don’t have to do it all at once. You can spread your contributions out throughout the year and you can contribute more or less some years. You also don’t have to save all that money\nthrough your 401(k)\n. Let’s take a step back and talk about other factors you should consider when you think about how much to contribute to your 401(k).\n401(k) Contribution Limits\nConsistently contribution to your\n401(k)\ncan turn it into a powerful tool for long-term wealth. However, you can’t just contribute an unlimited amount to it each year.\nFor 2026, the most you can contribute is $24,500 (up from $23,500 in 2025). But if you’re 50 or older, the limit increases to $32,500 (up from $31,000 in 2025) due to the additional $8,000 catch-up contribution limit (up from $7,500 in 2025). Starting in 2025, if you are aged 60 to 63, you will be able to make an expanded catch-up contribution of $11,250.\nBuild Your Emergency Fund\nYou want to save as much as you can for retirement, but you shouldn’t put all of your savings toward retirement. You should always have enough cash reserves to cover necessary expenses like food and rent. It’s also a good idea to create an emergency fund.\nAn\nemergency fund\n will protect you from unexpected expenses or difficult financial situations. What would you do if you lost your job or didn’t have a regular salary for a month? What if a family member got sick and you had medical bills to pay? A strong emergency fund allows you to get through tough times. Withdrawing money from your retirement accounts should be an absolute last resort. Just as importantly, an emergency fund will ease your mind by providing a sense of security. It’s always nice to know that you have a backup plan in case something goes wrong.\nAgain, there is no perfect answer for how much you should have in an emergency fund. It depends on your situation. In general, though, you want enough to cover at least a few months of expenses. That may sound like a lot if currently have no emergency fund, but you can build your fund over time by adding a little each week or month.\nContribute Enough for the Full Employer Match\nYou have enough saved up to cover your expenses. Your emergency fund is there in case you need it. Now you’re starting to think about 401(k) contributions. Where do you start?\nThe first thing you should figure out is if you have an employer matching program with your 401(k). With an employer match, your\nemployer will match your 401(k)\ncontributions up to a certain percentage of your gross salary. Say your employer offers 100% match on the first 5% you contribute. That means if you contribute 5% of your gross salary to your 401(k), your employer will contribute an amount equal to 5% of your gross salary. The total contribution to your 401(k) would then equal 10% of your gross salary.\nAn employer match allows you to increase your contribution, and you should always take advantage of matching programs. Unfortunately, many people pass up free money by not contributing up to their employer match.\nInvest in IRAs and Roth IRAs\nIf you remember the rule of thumb from earlier, experts advise saving around 15% of your gross salary each year for retirement. You could put this all in your 401(k), but you should consider some other options once you cover your 401(k) match.\nIf you’re single and earn less than $168,000, you qualify for a Roth IRA in 2026. If you’re married, file jointly and earn less than $257,000 in 2026 you also qualify for a Roth IRA. Those amounts are up from $165,000 and $246,000 in 2025.\nThis is a retirement savings vehicle that you can open at virtually any bank or financial institution. You fund these with after-tax dollars. So your contributions won’t reduce your taxable income. However, eligible withdrawals you make after turning 59 ½ are tax-free. It’s good to have a mix of taxable and non-taxable income in your retirement.\nRoth IRAs are particularly useful for young people who are just starting their careers. Chances are that if you just graduated from college, you’re in a lower tax bracket than you will be in when you retire. Paying the income tax now instead of later can save you money, especially when you need it the most\nRoth IRA and Roth 401(k) Contribution Limits\nIn 2026, you can contribute up to $7,500 to a Roth IRA. The $1,100 catch-up contribution for those who are at least 50 years old can raise that to $8,600. These are tan increase from $7,000 and $1,000, respectively, in 2025.\nIn addition, your employer may also offer a\nRoth 401(k)\n, which takes after-tax money just like a Roth IRA. For 2026, the contribution limit is $24,500, the same as a traditional 401(k). The catch-up contribution limits are also the same at $8,000 for people age 50 or older and $11,250 for those 60 to 63 years old. That makes the total 2026 contribution limit for those over 50 and between 60 and 63 $32,500 and $35,750, respectively.\nYou can also invest in a traditional IRA, which takes pre-tax dollars and lessens your taxable income just like a 401(k). Some people also have an IRA because when they left a previous employer, they moved their 401(k) funds into an IRA via an \nIRA rollover\n.\nMax Out Your Retirement Accounts\nMaxing out your retirement accounts can significantly increase long-term savings due to the power of tax advantages and compound growth. Contributing the maximum allowable amount to a 401(k) and a Roth IRA each year can help build wealth faster, especially when starting early.\nIf you contribute the maximum, every year for 30 years, assuming a 7% annual return, your retirement savings could grow to approximately $3 million. If you contribute only half of those limits, you would end up with less than half that amount. Over time, the difference in contributions results in a significant gap in retirement wealth, showing how consistent savings and compounding work together.\nBottom Line\nSaving 10% to 15% of your gross salary for retirement each year is just a general rule. Your goal should be to save as much for retirement as you can. Before anything else, you should ensure that you have enough savings to cover regular expenses and emergencies. If you have an employer match on your 401(k), you should contribute enough to cover the full match. \nIf you qualify for a\nRoth IRA\n, you should try to max it out. It’ll provide a source of nontaxable income in your retirement. Once you’ve done those things you should contribute as much to your 401(k) or IRA as you can. The most important thing is to contribute regularly – even if you can only save a little bit. It’s hard to prioritize your future over the things you want now, but you will thank yourself if you save while you’re young.\nTips for Contributing to Your 401(k)\nIf you’re struggling to get started or stay on track with your retirement savings, consider\nworking with a financial advisor\n. Finding a financial advisor doesn’t have to be hard.\nSmartAsset’s free tool\nmatches you with vetted financial advisors who serve your area, and you can have a free introductory call with your advisor matches to decide which one you feel is right for you. If you’re ready to find an advisor who can help you achieve your financial goals,\nget started now\n.\nIf you switch jobs, you can no longer contribute to a previous employer’s 401(k) plan. You don’t want to lose the hard work you did to save that money, so you should look to make a\ndirect 401(k) rollover\nto your new employer’s plan.\nA traditional IRA and a 401(k) offer similar tax benefits. You might wonder whether one is a better option for you. Here’s an article to help you think about\nan IRA vs. a 401(k)\n.\nYou should always avoid early withdrawals from your 401(k). Not only will you have to pay the income tax, you’ll have to a pay 10% penalty. There are a couple of ways you could avoid that big penalty though. If you really think you need to withdraw money early, here’s more information on\n401(k) withdrawals\n.\nPhoto credit: ©iStock.com\/DNY59, ©iStock.com\/FatCamera, ©iStock.com\/SIphotography","attrs_markdown":"- - Mortgage\n  - Taxes\n  - Retirement\n  - Financial Advisors\n  - Banking\n  - Investing\n  - Credit Cards\n  - Life Insurance\n  - Refinance\n  - Personal Loans\n  - Student Loans\n  - SmartReads\n  - SmartAsset AMP\n  - About\n  - Press\n  - Terms of Service\n  - Privacy Policy\n  - Back to SmartAsset Home\n- [Mortgage](https:\/\/smartasset.com\/mortgage)\n  Calculators\n  \n  - [Mortgage Calculator](https:\/\/smartasset.com\/mortgage\/mortgage-calculator)\n  - [Closing Costs Calculator](https:\/\/smartasset.com\/mortgage\/closing-costs)\n  - [Cost of Living Calculator](https:\/\/smartasset.com\/mortgage\/cost-of-living-calculator)\n  - [How Much House Can I Afford?](https:\/\/smartasset.com\/mortgage\/how-much-house-can-i-afford)\n  \n  Mortgage Lender Reviews\n  \n  - [Rocket Mortgage Review](https:\/\/smartasset.com\/mortgage\/rocket-mortgage-review)\n  - [Better Mortgage Review](https:\/\/smartasset.com\/mortgage\/better-mortgage-review)\n  - [AmeriSave Mortgage Review](https:\/\/smartasset.com\/mortgage\/AmeriSave-Mortgage-Review)\n  - [More Lender Reviews](https:\/\/smartasset.com\/mortgage\/lender-reviews)\n  \n  Compare Rates\n  \n  - [Mortgage Rates](https:\/\/smartasset.com\/mortgage\/mortgage-rates)\n  - [30-Year Mortgage Rates](https:\/\/smartasset.com\/mortgage\/30-yr-fixed-mortgage-rates)\n  - [15-Year Mortgage Rates](https:\/\/smartasset.com\/mortgage\/15-yr-fixed-mortgage-rates)\n  - [7\/1 Arm Mortgage Rates](https:\/\/smartasset.com\/mortgage\/7-1-arm-mortgage-rates)\n  - [5\/1 Arm Mortgage Rates](https:\/\/smartasset.com\/mortgage\/5-1-arm-mortgage-rates)\n  - [3\/1 Arm Mortgage Rates](https:\/\/smartasset.com\/mortgage\/3-1-arm-mortgage-rates)\n  \n  Helpful Guides\n  \n  - [Home Buying Guide](https:\/\/smartasset.com\/mortgage)\n  - [Veteran Home Buying Guide](https:\/\/smartasset.com\/mortgage\/veterans-home-buying-guide)\n  \n  Learn More\n  \n  - 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[Student Loans Guide](https:\/\/smartasset.com\/student-loans)\n- [Back to SmartAsset Home](https:\/\/smartasset.com\/)\n\n[I'm an Advisor](https:\/\/getamp.smartasset.com\/?utm_source=smartasset&utm_campaign=header_nav)[Find an Advisor](https:\/\/smartasset.com\/retirement\/find-a-financial-planner?utm_source=smartasset&utm_campaign=header_nav)\n\n[\\< 401(k)](https:\/\/smartasset.com\/retirement\/s\/401k)\n\n# How Much Should You Contribute to Your 401(k)?\n![Byline profile image](https:\/\/secure.gravatar.com\/avatar\/134d13179c5156dc2d6eb633afd9c942fd74a858d7f4a31d6e989b0f898188ec?s=96&d=mm&r=g)Written by\n\nDerek Silva, CEPF®\n\n\\|\n\n![Byline profile image](https:\/\/secure.gravatar.com\/avatar\/0e89a6629b5049077641f2e8656dfec7163822262770b225cd49ccf1d7d2ff1e?s=96&d=mm&r=g)Edited by\n\nJeff White, CEPF®\n\n![Byline profile image](https:\/\/secure.gravatar.com\/avatar\/de3f161a0dddef441091e8d3dcc69baa5c485a01314d2cdeb967be0c26aecc86?s=96&d=mm&r=g)Edited by\n\nMarie White, CEPF®\n\nUpdated on\n\nDecember 15, 2025, 5:12pm ET\n\n\\| ![fact checked badge](https:\/\/smartasset.com\/cds-images\/articles\/fact-checked-badge.svg)Fact Checked\n\nSmartAsset maintains strict [editorial integrity](https:\/\/smartasset.com\/editorial-independence). It doesn’t provide legal, tax, accounting or financial advice and isn’t a financial planner, broker, lawyer or tax adviser. Consult with your own advisers for guidance. Opinions, analyses, reviews or recommendations expressed in this post are only the author’s and for informational purposes. This post may contain links from advertisers, and we may receive compensation for marketing their products or services or if users purchase products or services. \\| Marketing Disclosure\n\nShare\n\n![A 401(k) statement.](https:\/\/smartasset.com\/wp-content\/uploads\/sites\/2\/2019\/05\/rsz_istock-155393099.jpg)\n\nDetermining how much you should contribute to your [401(k)](https:\/\/smartasset.com\/retirement\/401k-calculator) depends on factors like employer matching, tax benefits and personal financial goals. Some aim to contribute enough to maximize their employer match, while others strive to reach the annual IRS limit. A common recommendation is to allocate at least 10% to 15% of your salary, but individual circumstances, such as debt obligations and living expenses, play a role in setting the right percentage. Adjusting contributions over time can help balance retirement savings with short-term financial needs.\n\n**Do you have retirement planning questions or need help saving? [Speak with a financial advisor who serves your area today](https:\/\/smartasset.com\/retirement\/find-a-financial-planner?utm_source=smartasset&utm_medium=referral&utm_campaign=sma__falc_relevant&utm_content=howmuchshouldyoucontrupdated).**\n\n## How Much Should I Contribute to My 401(k)?\nA [401(k)](https:\/\/smartasset.com\/retirement\/what-is-a-401k) is a retirement savings plan offered by many for-profit companies. These accounts allow you to decrease your current taxable income because you fund them with pre-tax dollars. Then, in retirement, you pay taxes on your withdrawals under the assumption that your tax rates will be lower as a retiree than they are now.\n\nHowever, it’s not a savings account, so your money doesn’t just sit and grow automatically. Your employer chooses some investment options, and then it is typically up to you to create a [portfolio](https:\/\/smartasset.com\/investing\/what-is-an-investment-portfolio) of market-reliant investments. In other words, like any other investment, 401(k)s do have plenty of risk associated with them.\n\nSaving between 10% and 15% of your gross salary toward retirement is a general rule of thumb to follow, but everyone’s situation is different. These savings could come in the form of a 401(k) or in another kind of account, like a [Roth IRA](https:\/\/smartasset.com\/retirement\/what-is-a-roth-ira) or even a [traditional savings account](https:\/\/smartasset.com\/checking-account\/best-savings-accounts).\n\nAgain, these percentages are just a general rule. The actual amount you should save depends on your situation. For example, if you are 50 years old and don’t have any retirement savings, you may need to save more than 20% of your gross annual salary to feel comfortable. If you’re 30 years old and already have \\$100,000 in retirement savings, you could probably decrease your contributions for a bit to [pay off a mortgage](https:\/\/smartasset.com\/mortgage\/mortgage-calculator) or loan should you have one. It’s difficult to create a one-size-fits-all plan because everyone is in a different place with his or her finances.\n\nSaving 10% to 20% of your salary every year might sound like a lot. Luckily, you don’t have to do it all at once. You can spread your contributions out throughout the year and you can contribute more or less some years. You also don’t have to save all that money [through your 401(k)](https:\/\/smartasset.com\/retirement\/what-is-a-401k). Let’s take a step back and talk about other factors you should consider when you think about how much to contribute to your 401(k).\n\n### 401(k) Contribution Limits\nConsistently contribution to your [401(k)](https:\/\/smartasset.com\/retirement\/401k-calculator) can turn it into a powerful tool for long-term wealth. However, you can’t just contribute an unlimited amount to it each year.\n\nFor 2026, the most you can contribute is \\$24,500 (up from \\$23,500 in 2025). But if you’re 50 or older, the limit increases to \\$32,500 (up from \\$31,000 in 2025) due to the additional \\$8,000 catch-up contribution limit (up from \\$7,500 in 2025). Starting in 2025, if you are aged 60 to 63, you will be able to make an expanded catch-up contribution of \\$11,250.\n\n**Next Steps:** Planning for retirement can be overwhelming. We recommend speaking with a financial advisor. This free tool will match you with vetted advisors who serve your area.\n\nHere's how it works:\n\n- [Answer a few easy questions](https:\/\/smartasset.com\/retirement\/find-a-financial-planner?utm_source=smartasset&utm_campaign=zipcode&utm_content=sa-retirement-bl-howmuchsho), so we can find a match.\n- Our tool matches you with vetted fiduciary advisors who can help you on the path toward achieving your financial goals. It only takes a few minutes.\n- Check out the advisors' profiles, have an introductory call on the phone or introduction in person, and choose who to work with.\n\n**Enter your ZIP code to find your matches:**\n\nFind Your Advisor\n## Build Your Emergency Fund\nYou want to save as much as you can for retirement, but you shouldn’t put all of your savings toward retirement. You should always have enough cash reserves to cover necessary expenses like food and rent. It’s also a good idea to create an emergency fund.\n\nAn [emergency fund](https:\/\/smartasset.com\/checking-account\/top-5-reasons-to-have-an-emergency-fund) will protect you from unexpected expenses or difficult financial situations. What would you do if you lost your job or didn’t have a regular salary for a month? What if a family member got sick and you had medical bills to pay? A strong emergency fund allows you to get through tough times. Withdrawing money from your retirement accounts should be an absolute last resort. Just as importantly, an emergency fund will ease your mind by providing a sense of security. It’s always nice to know that you have a backup plan in case something goes wrong.\n\nAgain, there is no perfect answer for how much you should have in an emergency fund. It depends on your situation. In general, though, you want enough to cover at least a few months of expenses. That may sound like a lot if currently have no emergency fund, but you can build your fund over time by adding a little each week or month.\n\n## Contribute Enough for the Full Employer Match\nYou have enough saved up to cover your expenses. Your emergency fund is there in case you need it. Now you’re starting to think about 401(k) contributions. Where do you start?\n\nThe first thing you should figure out is if you have an employer matching program with your 401(k). With an employer match, your [employer will match your 401(k)](https:\/\/smartasset.com\/retirement\/does-employer-match-count-toward-the-401k-limit) contributions up to a certain percentage of your gross salary. Say your employer offers 100% match on the first 5% you contribute. That means if you contribute 5% of your gross salary to your 401(k), your employer will contribute an amount equal to 5% of your gross salary. The total contribution to your 401(k) would then equal 10% of your gross salary.\n\nAn employer match allows you to increase your contribution, and you should always take advantage of matching programs. Unfortunately, many people pass up free money by not contributing up to their employer match.\n\n## Invest in IRAs and Roth IRAs\n![A couple discuss with their advisor how much to contribute to their 401(k).](https:\/\/smartasset.com\/wp-content\/uploads\/sites\/2\/2019\/05\/rsz_istock-540596942.jpg)\n\nIf you remember the rule of thumb from earlier, experts advise saving around 15% of your gross salary each year for retirement. You could put this all in your 401(k), but you should consider some other options once you cover your 401(k) match.\n\nIf you’re single and earn less than \\$168,000, you qualify for a Roth IRA in 2026. If you’re married, file jointly and earn less than \\$257,000 in 2026 you also qualify for a Roth IRA. Those amounts are up from \\$165,000 and \\$246,000 in 2025.\n\nThis is a retirement savings vehicle that you can open at virtually any bank or financial institution. You fund these with after-tax dollars. So your contributions won’t reduce your taxable income. However, eligible withdrawals you make after turning 59 ½ are tax-free. It’s good to have a mix of taxable and non-taxable income in your retirement.\n\nRoth IRAs are particularly useful for young people who are just starting their careers. Chances are that if you just graduated from college, you’re in a lower tax bracket than you will be in when you retire. Paying the income tax now instead of later can save you money, especially when you need it the most\n\n### Roth IRA and Roth 401(k) Contribution Limits\nIn 2026, you can contribute up to \\$7,500 to a Roth IRA. The \\$1,100 catch-up contribution for those who are at least 50 years old can raise that to \\$8,600. These are tan increase from \\$7,000 and \\$1,000, respectively, in 2025.\n\nIn addition, your employer may also offer a [Roth 401(k)](https:\/\/smartasset.com\/retirement\/what-is-a-roth-401k), which takes after-tax money just like a Roth IRA. For 2026, the contribution limit is \\$24,500, the same as a traditional 401(k). The catch-up contribution limits are also the same at \\$8,000 for people age 50 or older and \\$11,250 for those 60 to 63 years old. That makes the total 2026 contribution limit for those over 50 and between 60 and 63 \\$32,500 and \\$35,750, respectively.\n\nYou can also invest in a traditional IRA, which takes pre-tax dollars and lessens your taxable income just like a 401(k). Some people also have an IRA because when they left a previous employer, they moved their 401(k) funds into an IRA via an [IRA rollover](https:\/\/smartasset.com\/retirement\/how-to-make-an-ira-rollover).\n\n## Max Out Your Retirement Accounts\nMaxing out your retirement accounts can significantly increase long-term savings due to the power of tax advantages and compound growth. Contributing the maximum allowable amount to a 401(k) and a Roth IRA each year can help build wealth faster, especially when starting early.\n\nIf you contribute the maximum, every year for 30 years, assuming a 7% annual return, your retirement savings could grow to approximately \\$3 million. If you contribute only half of those limits, you would end up with less than half that amount. Over time, the difference in contributions results in a significant gap in retirement wealth, showing how consistent savings and compounding work together.\n\n## Bottom Line\n![A man sitting next to a piggy bank.](https:\/\/smartasset.com\/wp-content\/uploads\/sites\/2\/2019\/05\/rsz_istock-504302802.jpg)\n\nSaving 10% to 15% of your gross salary for retirement each year is just a general rule. Your goal should be to save as much for retirement as you can. Before anything else, you should ensure that you have enough savings to cover regular expenses and emergencies. If you have an employer match on your 401(k), you should contribute enough to cover the full match.\n\nIf you qualify for a [Roth IRA](https:\/\/smartasset.com\/retirement\/how-to-open-a-roth-ira), you should try to max it out. It’ll provide a source of nontaxable income in your retirement. Once you’ve done those things you should contribute as much to your 401(k) or IRA as you can. The most important thing is to contribute regularly – even if you can only save a little bit. It’s hard to prioritize your future over the things you want now, but you will thank yourself if you save while you’re young.\n\n## Tips for Contributing to Your 401(k)\n- If you’re struggling to get started or stay on track with your retirement savings, consider [working with a financial advisor](https:\/\/smartasset.com\/retirement\/find-a-financial-planner?utm_source=smartasset&utm_medium=referral&utm_campaign=sma__falc_relevant&utm_content=howmuchshouldyoucontrupdated). Finding a financial advisor doesn’t have to be hard. [SmartAsset’s free tool](https:\/\/smartasset.com\/retirement\/find-a-financial-planner?utm_source=smartasset&utm_medium=referral&utm_campaign=sma__falc_relevant&utm_content=howmuchshouldyoucontrupdated) matches you with vetted financial advisors who serve your area, and you can have a free introductory call with your advisor matches to decide which one you feel is right for you. If you’re ready to find an advisor who can help you achieve your financial goals, [get started now](https:\/\/smartasset.com\/retirement\/find-a-financial-planner?utm_source=smartasset&utm_medium=referral&utm_campaign=sma__falc_relevant&utm_content=howmuchshouldyoucontrupdated).\n- If you switch jobs, you can no longer contribute to a previous employer’s 401(k) plan. You don’t want to lose the hard work you did to save that money, so you should look to make a [direct 401(k) rollover](https:\/\/smartasset.com\/retirement\/why-you-should-rollover-your-old-401k-directly-to-a-new-401k) to your new employer’s plan.\n- A traditional IRA and a 401(k) offer similar tax benefits. You might wonder whether one is a better option for you. Here’s an article to help you think about [an IRA vs. a 401(k)](https:\/\/smartasset.com\/retirement\/ira-vs-401k).\n- You should always avoid early withdrawals from your 401(k). Not only will you have to pay the income tax, you’ll have to a pay 10% penalty. There are a couple of ways you could avoid that big penalty though. If you really think you need to withdraw money early, here’s more information on [401(k) withdrawals](https:\/\/smartasset.com\/retirement\/all-about-401k-withdrawals).\n\nPhoto credit: ©iStock.com\/DNY59, ©iStock.com\/FatCamera, ©iStock.com\/SIphotography\n\n[Derek Silva, CEPF®](https:\/\/smartasset.com\/author\/derek-silva)Derek Silva is determined to make personal finance accessible to everyone. He writes on a variety of personal finance topics for SmartAsset, serving as a retirement and credit card expert. Derek is a Certified Educator in Personal Finance® (CEPF®). He has a degree from the University of Massachusetts Amherst and has spent time as an English language teacher in the Portuguese autonomous region of the Azores. The message Derek hopes people take away from his writing is, “Don’t forget that money is just a tool to help you reach your goals and live the lifestyle you want.”\n\nLoading Related Articles...\n\n![]()\n\n![]()\n\n![]()\n\n![]()\n\nRecent posts\n\n- [![](https:\/\/smartasset.com\/cds-images\/articles\/suit.webp)Revealed: Annual List of Top Financial Advisor Firms](https:\/\/insights.smartasset.com\/topfa?utm_source=smartasset&utm_campaign=sma__falc_content_relatedposts_retire&utm_content=topfa_suit \"Revealed: Annual List of Top Financial Advisor Firms\")\n- [![](https:\/\/smartasset.com\/cds-images\/articles\/jetski.webp)How to Potentially Reduce RMD Taxes After Age 73](https:\/\/insights.smartasset.com\/strategies-rmd-tax-after-73?utm_source=smartasset&utm_campaign=sma__falc_content_relatedposts_retire&utm_content=stratrmd73_jetski \"How to Potentially Reduce RMD Taxes After Age 73\")\n- [![](https:\/\/smartasset.com\/cds-images\/articles\/eric.webp)How Irrevocable Trusts Can Help Eliminate Estate Taxes](https:\/\/insights.smartasset.com\/sem\/how-irrevocable-trusts-can-help-eliminate-estate-taxes?utm_source=smartasset&utm_campaign=sma__falc_content_relatedposts_retire&utm_content=irrevoctrust_eric \"How Irrevocable Trusts Can Help Eliminate Estate Taxes\")\n\nMore from SmartAsset\n\n- [Compare Financial Advisor Matches Today](https:\/\/smartasset.com\/retirement\/find-a-financial-planner?utm_source=smartasset&utm_campaign=blog_right_rail)\n- [How to Find and Choose a Financial Advisor](https:\/\/smartasset.com\/retirement\/financial-advisor)\n- [The Top Financial Advisors in the U.S.](https:\/\/smartasset.com\/financial-advisor\/us-top-financial-advisors)\n- [How Much Do I Need to Save for Retirement?](https:\/\/smartasset.com\/retirement\/retirement-calculator)\n- [Mortgage Calculator](https:\/\/smartasset.com\/mortgage\/mortgage-calculator)\n- [Compare Mortgage Rates](https:\/\/smartasset.com\/mortgage\/mortgage-rates)\n\nCategories\n\n- [Advisor Resources](https:\/\/smartasset.com\/advisor-resources)\n- [Auto](https:\/\/smartasset.com\/auto)\n- [Career](https:\/\/smartasset.com\/career)\n- [Checking Account](https:\/\/smartasset.com\/checking-account)\n- [Credit Cards](https:\/\/smartasset.com\/credit-cards)\n- [Credit Score](https:\/\/smartasset.com\/credit-score)\n- [Data Studies](https:\/\/smartasset.com\/data-studies)\n- [Debt](https:\/\/smartasset.com\/debt)\n- [Estate Planning](https:\/\/smartasset.com\/estate-planning)\n- [Financial Advisor](https:\/\/smartasset.com\/financial-advisor)\n- [Insights](https:\/\/smartasset.com\/insights)\n- [Insurance](https:\/\/smartasset.com\/insurance)\n- [Investing](https:\/\/smartasset.com\/investing)\n- [Life Insurance](https:\/\/smartasset.com\/life-insurance)\n- [Mortgage](https:\/\/smartasset.com\/mortgage)\n- [Personal Finance](https:\/\/smartasset.com\/personal-finance)\n- [Personal Loans](https:\/\/smartasset.com\/personal-loans)\n- [Refinance](https:\/\/smartasset.com\/refinance)\n- [Retirement](https:\/\/smartasset.com\/retirement)\n- [Small Business](https:\/\/smartasset.com\/small-business)\n- [Student Loans](https:\/\/smartasset.com\/student-loans)\n- [Taxes](https:\/\/smartasset.com\/taxes)\n\nGet in touch\n\n[Contact](https:\/\/smartasset.com\/about#contact)\n\n[Careers](https:\/\/smartasset.com\/careers)\n\nSmartAsset\n\n[Search](https:\/\/smartasset.com\/search)\n\n[About](https:\/\/smartasset.com\/about)\n\n[SmartReads](https:\/\/smartasset.com\/blog)\n\n[Captivate](https:\/\/smartasset.com\/captivate)\n\n[SmartAsset AMP](https:\/\/getamp.smartasset.com\/)\n\n[Advisor Testimonials](https:\/\/get.smartasset.com\/advisor-testimonials\/)\n\n[Press](https:\/\/smartasset.com\/press)\n\n[SmartAdvisorMatch](https:\/\/smartadvisormatch.com\/)\n\nGet Social\n\n[Like on Facebook](https:\/\/facebook.com\/smartasset)\n\n[Like on X](https:\/\/x.com\/@smartasset)\n\n[Follow on LinkedIn](https:\/\/www.linkedin.com\/company\/smartasset-com)\n\nLegal Stuff\n\n[Terms of Service](https:\/\/smartasset.com\/terms)\n\n[Privacy Policy](https:\/\/smartasset.com\/privacy)\n\n[AdChoices](https:\/\/optout.aboutads.info\/#!\/)\n\n[GLB Notice](https:\/\/smartasset.com\/glb-notice)\n\n[Online Tracking Opt-Out Guide](https:\/\/smartasset.com\/privacy#opt_out)\n\nSmartAsset Advisors, LLC (\"SmartAsset\"), a wholly owned subsidiary of Financial Insight Technology, is registered with the U.S. Securities and Exchange Commission as an investment adviser. 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There are no guarantees that working with an adviser will yield positive returns. The existence of a fiduciary duty does not prevent the rise of potential conflicts of interest.\n\n© 2026 SmartAsset, all rights reserved.\n\nRead More About Retirement\n\n[![](https:\/\/smartasset.com\/wp-content\/uploads\/sites\/2\/2026\/03\/iStock-1349328691.jpg)Retirement Planning Retirement Planning for Dentists: Services and ExamplesMarch 31, 2026Read More](https:\/\/smartasset.com\/retirement\/retirement-planning-for-dentists)\n\n[![Retirement planning for federal employees covers three income streams, including the FERS pension, TSP and Social Security, each with its own rules and deadlines.](https:\/\/smartasset.com\/wp-content\/uploads\/sites\/2\/2026\/03\/iStock-1602814557-9.jpg)Retirement Planning Retirement Planning for Federal Employees: Services and Exam...April 10, 2026Read More](https:\/\/smartasset.com\/retirement\/retirement-planning-for-federal-employees)\n\n[![](https:\/\/smartasset.com\/wp-content\/uploads\/sites\/2\/2026\/03\/iStock-2187596823-3.jpg)Annuities How Are Variable Annuities Regulated?March 31, 2026Read More](https:\/\/smartasset.com\/retirement\/how-are-variable-annuities-regulated)\n\n[![A comfortable retirement for doctors usually starts with making the most of the years between attending-level income and the decision to step back from practice.](https:\/\/smartasset.com\/wp-content\/uploads\/sites\/2\/2026\/03\/iStock-2224479238.jpg)Retirement Planning Retirement Planning for Doctors: Services and ExamplesApril 3, 2026Read More](https:\/\/smartasset.com\/retirement\/retirement-planning-for-doctors)","attrs_readable_markdown":"Determining how much you should contribute to your [401(k)](https:\/\/smartasset.com\/retirement\/401k-calculator) depends on factors like employer matching, tax benefits and personal financial goals. Some aim to contribute enough to maximize their employer match, while others strive to reach the annual IRS limit. A common recommendation is to allocate at least 10% to 15% of your salary, but individual circumstances, such as debt obligations and living expenses, play a role in setting the right percentage. Adjusting contributions over time can help balance retirement savings with short-term financial needs.\n\n**Do you have retirement planning questions or need help saving? [Speak with a financial advisor who serves your area today](https:\/\/smartasset.com\/retirement\/find-a-financial-planner?utm_source=smartasset&utm_medium=referral&utm_campaign=sma__falc_relevant&utm_content=howmuchshouldyoucontrupdated).**\n\nA [401(k)](https:\/\/smartasset.com\/retirement\/what-is-a-401k) is a retirement savings plan offered by many for-profit companies. These accounts allow you to decrease your current taxable income because you fund them with pre-tax dollars. Then, in retirement, you pay taxes on your withdrawals under the assumption that your tax rates will be lower as a retiree than they are now.\n\nHowever, it’s not a savings account, so your money doesn’t just sit and grow automatically. Your employer chooses some investment options, and then it is typically up to you to create a [portfolio](https:\/\/smartasset.com\/investing\/what-is-an-investment-portfolio) of market-reliant investments. In other words, like any other investment, 401(k)s do have plenty of risk associated with them.\n\nSaving between 10% and 15% of your gross salary toward retirement is a general rule of thumb to follow, but everyone’s situation is different. These savings could come in the form of a 401(k) or in another kind of account, like a [Roth IRA](https:\/\/smartasset.com\/retirement\/what-is-a-roth-ira) or even a [traditional savings account](https:\/\/smartasset.com\/checking-account\/best-savings-accounts).\n\nAgain, these percentages are just a general rule. The actual amount you should save depends on your situation. For example, if you are 50 years old and don’t have any retirement savings, you may need to save more than 20% of your gross annual salary to feel comfortable. If you’re 30 years old and already have \\$100,000 in retirement savings, you could probably decrease your contributions for a bit to [pay off a mortgage](https:\/\/smartasset.com\/mortgage\/mortgage-calculator) or loan should you have one. It’s difficult to create a one-size-fits-all plan because everyone is in a different place with his or her finances.\n\nSaving 10% to 20% of your salary every year might sound like a lot. Luckily, you don’t have to do it all at once. You can spread your contributions out throughout the year and you can contribute more or less some years. You also don’t have to save all that money [through your 401(k)](https:\/\/smartasset.com\/retirement\/what-is-a-401k). Let’s take a step back and talk about other factors you should consider when you think about how much to contribute to your 401(k).\n\n### 401(k) Contribution Limits\nConsistently contribution to your [401(k)](https:\/\/smartasset.com\/retirement\/401k-calculator) can turn it into a powerful tool for long-term wealth. However, you can’t just contribute an unlimited amount to it each year.\n\nFor 2026, the most you can contribute is \\$24,500 (up from \\$23,500 in 2025). But if you’re 50 or older, the limit increases to \\$32,500 (up from \\$31,000 in 2025) due to the additional \\$8,000 catch-up contribution limit (up from \\$7,500 in 2025). Starting in 2025, if you are aged 60 to 63, you will be able to make an expanded catch-up contribution of \\$11,250.\n\n## Build Your Emergency Fund\nYou want to save as much as you can for retirement, but you shouldn’t put all of your savings toward retirement. You should always have enough cash reserves to cover necessary expenses like food and rent. It’s also a good idea to create an emergency fund.\n\nAn [emergency fund](https:\/\/smartasset.com\/checking-account\/top-5-reasons-to-have-an-emergency-fund) will protect you from unexpected expenses or difficult financial situations. What would you do if you lost your job or didn’t have a regular salary for a month? What if a family member got sick and you had medical bills to pay? A strong emergency fund allows you to get through tough times. Withdrawing money from your retirement accounts should be an absolute last resort. Just as importantly, an emergency fund will ease your mind by providing a sense of security. It’s always nice to know that you have a backup plan in case something goes wrong.\n\nAgain, there is no perfect answer for how much you should have in an emergency fund. It depends on your situation. In general, though, you want enough to cover at least a few months of expenses. That may sound like a lot if currently have no emergency fund, but you can build your fund over time by adding a little each week or month.\n\n## Contribute Enough for the Full Employer Match\nYou have enough saved up to cover your expenses. Your emergency fund is there in case you need it. Now you’re starting to think about 401(k) contributions. Where do you start?\n\nThe first thing you should figure out is if you have an employer matching program with your 401(k). With an employer match, your [employer will match your 401(k)](https:\/\/smartasset.com\/retirement\/does-employer-match-count-toward-the-401k-limit) contributions up to a certain percentage of your gross salary. Say your employer offers 100% match on the first 5% you contribute. That means if you contribute 5% of your gross salary to your 401(k), your employer will contribute an amount equal to 5% of your gross salary. The total contribution to your 401(k) would then equal 10% of your gross salary.\n\nAn employer match allows you to increase your contribution, and you should always take advantage of matching programs. Unfortunately, many people pass up free money by not contributing up to their employer match.\n\n## Invest in IRAs and Roth IRAs\n![A couple discuss with their advisor how much to contribute to their 401(k).](https:\/\/smartasset.com\/wp-content\/uploads\/sites\/2\/2019\/05\/rsz_istock-540596942.jpg)\n\nIf you remember the rule of thumb from earlier, experts advise saving around 15% of your gross salary each year for retirement. You could put this all in your 401(k), but you should consider some other options once you cover your 401(k) match.\n\nIf you’re single and earn less than \\$168,000, you qualify for a Roth IRA in 2026. If you’re married, file jointly and earn less than \\$257,000 in 2026 you also qualify for a Roth IRA. Those amounts are up from \\$165,000 and \\$246,000 in 2025.\n\nThis is a retirement savings vehicle that you can open at virtually any bank or financial institution. You fund these with after-tax dollars. So your contributions won’t reduce your taxable income. However, eligible withdrawals you make after turning 59 ½ are tax-free. It’s good to have a mix of taxable and non-taxable income in your retirement.\n\nRoth IRAs are particularly useful for young people who are just starting their careers. Chances are that if you just graduated from college, you’re in a lower tax bracket than you will be in when you retire. Paying the income tax now instead of later can save you money, especially when you need it the most\n\n### Roth IRA and Roth 401(k) Contribution Limits\nIn 2026, you can contribute up to \\$7,500 to a Roth IRA. The \\$1,100 catch-up contribution for those who are at least 50 years old can raise that to \\$8,600. These are tan increase from \\$7,000 and \\$1,000, respectively, in 2025.\n\nIn addition, your employer may also offer a [Roth 401(k)](https:\/\/smartasset.com\/retirement\/what-is-a-roth-401k), which takes after-tax money just like a Roth IRA. For 2026, the contribution limit is \\$24,500, the same as a traditional 401(k). The catch-up contribution limits are also the same at \\$8,000 for people age 50 or older and \\$11,250 for those 60 to 63 years old. That makes the total 2026 contribution limit for those over 50 and between 60 and 63 \\$32,500 and \\$35,750, respectively.\n\nYou can also invest in a traditional IRA, which takes pre-tax dollars and lessens your taxable income just like a 401(k). Some people also have an IRA because when they left a previous employer, they moved their 401(k) funds into an IRA via an [IRA rollover](https:\/\/smartasset.com\/retirement\/how-to-make-an-ira-rollover).\n\n## Max Out Your Retirement Accounts\nMaxing out your retirement accounts can significantly increase long-term savings due to the power of tax advantages and compound growth. Contributing the maximum allowable amount to a 401(k) and a Roth IRA each year can help build wealth faster, especially when starting early.\n\nIf you contribute the maximum, every year for 30 years, assuming a 7% annual return, your retirement savings could grow to approximately \\$3 million. If you contribute only half of those limits, you would end up with less than half that amount. Over time, the difference in contributions results in a significant gap in retirement wealth, showing how consistent savings and compounding work together.\n\n## Bottom Line\n![A man sitting next to a piggy bank.](https:\/\/smartasset.com\/wp-content\/uploads\/sites\/2\/2019\/05\/rsz_istock-504302802.jpg)\n\nSaving 10% to 15% of your gross salary for retirement each year is just a general rule. Your goal should be to save as much for retirement as you can. Before anything else, you should ensure that you have enough savings to cover regular expenses and emergencies. If you have an employer match on your 401(k), you should contribute enough to cover the full match.\n\nIf you qualify for a [Roth IRA](https:\/\/smartasset.com\/retirement\/how-to-open-a-roth-ira), you should try to max it out. It’ll provide a source of nontaxable income in your retirement. Once you’ve done those things you should contribute as much to your 401(k) or IRA as you can. The most important thing is to contribute regularly – even if you can only save a little bit. It’s hard to prioritize your future over the things you want now, but you will thank yourself if you save while you’re young.\n\n## Tips for Contributing to Your 401(k)\n- If you’re struggling to get started or stay on track with your retirement savings, consider [working with a financial advisor](https:\/\/smartasset.com\/retirement\/find-a-financial-planner?utm_source=smartasset&utm_medium=referral&utm_campaign=sma__falc_relevant&utm_content=howmuchshouldyoucontrupdated). Finding a financial advisor doesn’t have to be hard. [SmartAsset’s free tool](https:\/\/smartasset.com\/retirement\/find-a-financial-planner?utm_source=smartasset&utm_medium=referral&utm_campaign=sma__falc_relevant&utm_content=howmuchshouldyoucontrupdated) matches you with vetted financial advisors who serve your area, and you can have a free introductory call with your advisor matches to decide which one you feel is right for you. If you’re ready to find an advisor who can help you achieve your financial goals, [get started now](https:\/\/smartasset.com\/retirement\/find-a-financial-planner?utm_source=smartasset&utm_medium=referral&utm_campaign=sma__falc_relevant&utm_content=howmuchshouldyoucontrupdated).\n- If you switch jobs, you can no longer contribute to a previous employer’s 401(k) plan. You don’t want to lose the hard work you did to save that money, so you should look to make a [direct 401(k) rollover](https:\/\/smartasset.com\/retirement\/why-you-should-rollover-your-old-401k-directly-to-a-new-401k) to your new employer’s plan.\n- A traditional IRA and a 401(k) offer similar tax benefits. You might wonder whether one is a better option for you. Here’s an article to help you think about [an IRA vs. a 401(k)](https:\/\/smartasset.com\/retirement\/ira-vs-401k).\n- You should always avoid early withdrawals from your 401(k). Not only will you have to pay the income tax, you’ll have to a pay 10% penalty. There are a couple of ways you could avoid that big penalty though. If you really think you need to withdraw money early, here’s more information on [401(k) withdrawals](https:\/\/smartasset.com\/retirement\/all-about-401k-withdrawals).\n\nPhoto credit: ©iStock.com\/DNY59, ©iStock.com\/FatCamera, ©iStock.com\/SIphotography","meta_canonical":null}

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Meta Title	How Much Should You Contribute to Your 401(k)?
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Boilerpipe Text	Determining how much you should contribute to your 401(k) depends on factors like employer matching, tax benefits and personal financial goals. Some aim to contribute enough to maximize their employer match, while others strive to reach the annual IRS limit. A common recommendation is to allocate at least 10% to 15% of your salary, but individual circumstances, such as debt obligations and living expenses, play a role in setting the right percentage. Adjusting contributions over time can help balance retirement savings with short-term financial needs. Do you have retirement planning questions or need help saving? Speak with a financial advisor who serves your area today . A 401(k) is a retirement savings plan offered by many for-profit companies. These accounts allow you to decrease your current taxable income because you fund them with pre-tax dollars. Then, in retirement, you pay taxes on your withdrawals under the assumption that your tax rates will be lower as a retiree than they are now. However, it’s not a savings account, so your money doesn’t just sit and grow automatically. Your employer chooses some investment options, and then it is typically up to you to create a portfolio of market-reliant investments. In other words, like any other investment, 401(k)s do have plenty of risk associated with them. Saving between 10% and 15% of your gross salary toward retirement is a general rule of thumb to follow, but everyone’s situation is different. These savings could come in the form of a 401(k) or in another kind of account, like a Roth IRA or even a traditional savings account . Again, these percentages are just a general rule. The actual amount you should save depends on your situation. For example, if you are 50 years old and don’t have any retirement savings, you may need to save more than 20% of your gross annual salary to feel comfortable. If you’re 30 years old and already have $100,000 in retirement savings, you could probably decrease your contributions for a bit to pay off a mortgage or loan should you have one. It’s difficult to create a one-size-fits-all plan because everyone is in a different place with his or her finances. Saving 10% to 20% of your salary every year might sound like a lot. Luckily, you don’t have to do it all at once. You can spread your contributions out throughout the year and you can contribute more or less some years. You also don’t have to save all that money through your 401(k) . Let’s take a step back and talk about other factors you should consider when you think about how much to contribute to your 401(k). 401(k) Contribution Limits Consistently contribution to your 401(k) can turn it into a powerful tool for long-term wealth. However, you can’t just contribute an unlimited amount to it each year. For 2026, the most you can contribute is $24,500 (up from $23,500 in 2025). But if you’re 50 or older, the limit increases to $32,500 (up from $31,000 in 2025) due to the additional $8,000 catch-up contribution limit (up from $7,500 in 2025). Starting in 2025, if you are aged 60 to 63, you will be able to make an expanded catch-up contribution of $11,250. Build Your Emergency Fund You want to save as much as you can for retirement, but you shouldn’t put all of your savings toward retirement. You should always have enough cash reserves to cover necessary expenses like food and rent. It’s also a good idea to create an emergency fund. An emergency fund will protect you from unexpected expenses or difficult financial situations. What would you do if you lost your job or didn’t have a regular salary for a month? What if a family member got sick and you had medical bills to pay? A strong emergency fund allows you to get through tough times. Withdrawing money from your retirement accounts should be an absolute last resort. Just as importantly, an emergency fund will ease your mind by providing a sense of security. It’s always nice to know that you have a backup plan in case something goes wrong. Again, there is no perfect answer for how much you should have in an emergency fund. It depends on your situation. In general, though, you want enough to cover at least a few months of expenses. That may sound like a lot if currently have no emergency fund, but you can build your fund over time by adding a little each week or month. Contribute Enough for the Full Employer Match You have enough saved up to cover your expenses. Your emergency fund is there in case you need it. Now you’re starting to think about 401(k) contributions. Where do you start? The first thing you should figure out is if you have an employer matching program with your 401(k). With an employer match, your employer will match your 401(k) contributions up to a certain percentage of your gross salary. Say your employer offers 100% match on the first 5% you contribute. That means if you contribute 5% of your gross salary to your 401(k), your employer will contribute an amount equal to 5% of your gross salary. The total contribution to your 401(k) would then equal 10% of your gross salary. An employer match allows you to increase your contribution, and you should always take advantage of matching programs. Unfortunately, many people pass up free money by not contributing up to their employer match. Invest in IRAs and Roth IRAs If you remember the rule of thumb from earlier, experts advise saving around 15% of your gross salary each year for retirement. You could put this all in your 401(k), but you should consider some other options once you cover your 401(k) match. If you’re single and earn less than $168,000, you qualify for a Roth IRA in 2026. If you’re married, file jointly and earn less than $257,000 in 2026 you also qualify for a Roth IRA. Those amounts are up from $165,000 and $246,000 in 2025. This is a retirement savings vehicle that you can open at virtually any bank or financial institution. You fund these with after-tax dollars. So your contributions won’t reduce your taxable income. However, eligible withdrawals you make after turning 59 ½ are tax-free. It’s good to have a mix of taxable and non-taxable income in your retirement. Roth IRAs are particularly useful for young people who are just starting their careers. Chances are that if you just graduated from college, you’re in a lower tax bracket than you will be in when you retire. Paying the income tax now instead of later can save you money, especially when you need it the most Roth IRA and Roth 401(k) Contribution Limits In 2026, you can contribute up to $7,500 to a Roth IRA. The $1,100 catch-up contribution for those who are at least 50 years old can raise that to $8,600. These are tan increase from $7,000 and $1,000, respectively, in 2025. In addition, your employer may also offer a Roth 401(k) , which takes after-tax money just like a Roth IRA. For 2026, the contribution limit is $24,500, the same as a traditional 401(k). The catch-up contribution limits are also the same at $8,000 for people age 50 or older and $11,250 for those 60 to 63 years old. That makes the total 2026 contribution limit for those over 50 and between 60 and 63 $32,500 and $35,750, respectively. You can also invest in a traditional IRA, which takes pre-tax dollars and lessens your taxable income just like a 401(k). Some people also have an IRA because when they left a previous employer, they moved their 401(k) funds into an IRA via an IRA rollover . Max Out Your Retirement Accounts Maxing out your retirement accounts can significantly increase long-term savings due to the power of tax advantages and compound growth. Contributing the maximum allowable amount to a 401(k) and a Roth IRA each year can help build wealth faster, especially when starting early. If you contribute the maximum, every year for 30 years, assuming a 7% annual return, your retirement savings could grow to approximately $3 million. If you contribute only half of those limits, you would end up with less than half that amount. Over time, the difference in contributions results in a significant gap in retirement wealth, showing how consistent savings and compounding work together. Bottom Line Saving 10% to 15% of your gross salary for retirement each year is just a general rule. Your goal should be to save as much for retirement as you can. Before anything else, you should ensure that you have enough savings to cover regular expenses and emergencies. If you have an employer match on your 401(k), you should contribute enough to cover the full match. If you qualify for a Roth IRA , you should try to max it out. It’ll provide a source of nontaxable income in your retirement. Once you’ve done those things you should contribute as much to your 401(k) or IRA as you can. The most important thing is to contribute regularly – even if you can only save a little bit. It’s hard to prioritize your future over the things you want now, but you will thank yourself if you save while you’re young. Tips for Contributing to Your 401(k) If you’re struggling to get started or stay on track with your retirement savings, consider working with a financial advisor . Finding a financial advisor doesn’t have to be hard. SmartAsset’s free tool matches you with vetted financial advisors who serve your area, and you can have a free introductory call with your advisor matches to decide which one you feel is right for you. If you’re ready to find an advisor who can help you achieve your financial goals, get started now . If you switch jobs, you can no longer contribute to a previous employer’s 401(k) plan. You don’t want to lose the hard work you did to save that money, so you should look to make a direct 401(k) rollover to your new employer’s plan. A traditional IRA and a 401(k) offer similar tax benefits. You might wonder whether one is a better option for you. Here’s an article to help you think about an IRA vs. a 401(k) . You should always avoid early withdrawals from your 401(k). Not only will you have to pay the income tax, you’ll have to a pay 10% penalty. There are a couple of ways you could avoid that big penalty though. If you really think you need to withdraw money early, here’s more information on 401(k) withdrawals . Photo credit: ©iStock.com/DNY59, ©iStock.com/FatCamera, ©iStock.com/SIphotography
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[Personal Loan Rates](https://smartasset.com/personal-loans/personal-loan-rates) Helpful Guides - [Personal Loans Guide](https://smartasset.com/personal-loans) Calculators - [Student Loan Calculator](https://smartasset.com/student-loans/student-loan-calculator) Compare Rates - [Student Loan Refinance Rates](https://smartasset.com/student-loans/student-loan-refinance-rates) Helpful Guides - [Student Loans Guide](https://smartasset.com/student-loans) - [Back to SmartAsset Home](https://smartasset.com/) [I'm an Advisor](https://getamp.smartasset.com/?utm_source=smartasset&utm_campaign=header_nav)[Find an Advisor](https://smartasset.com/retirement/find-a-financial-planner?utm_source=smartasset&utm_campaign=header_nav) [\< 401(k)](https://smartasset.com/retirement/s/401k) # How Much Should You Contribute to Your 401(k)? ![Byline profile image](https://secure.gravatar.com/avatar/134d13179c5156dc2d6eb633afd9c942fd74a858d7f4a31d6e989b0f898188ec?s=96&d=mm&r=g)Written by Derek Silva, CEPF® \\| ![Byline profile image](https://secure.gravatar.com/avatar/0e89a6629b5049077641f2e8656dfec7163822262770b225cd49ccf1d7d2ff1e?s=96&d=mm&r=g)Edited by Jeff White, CEPF® ![Byline profile image](https://secure.gravatar.com/avatar/de3f161a0dddef441091e8d3dcc69baa5c485a01314d2cdeb967be0c26aecc86?s=96&d=mm&r=g)Edited by Marie White, CEPF® Updated on December 15, 2025, 5:12pm ET \\| ![fact checked badge](https://smartasset.com/cds-images/articles/fact-checked-badge.svg)Fact Checked SmartAsset maintains strict [editorial integrity](https://smartasset.com/editorial-independence). It doesn’t provide legal, tax, accounting or financial advice and isn’t a financial planner, broker, lawyer or tax adviser. Consult with your own advisers for guidance. Opinions, analyses, reviews or recommendations expressed in this post are only the author’s and for informational purposes. This post may contain links from advertisers, and we may receive compensation for marketing their products or services or if users purchase products or services. \\| Marketing Disclosure Share ![A 401(k) statement.](https://smartasset.com/wp-content/uploads/sites/2/2019/05/rsz_istock-155393099.jpg) Determining how much you should contribute to your [401(k)](https://smartasset.com/retirement/401k-calculator) depends on factors like employer matching, tax benefits and personal financial goals. Some aim to contribute enough to maximize their employer match, while others strive to reach the annual IRS limit. A common recommendation is to allocate at least 10% to 15% of your salary, but individual circumstances, such as debt obligations and living expenses, play a role in setting the right percentage. Adjusting contributions over time can help balance retirement savings with short-term financial needs. Do you have retirement planning questions or need help saving? [Speak with a financial advisor who serves your area today](https://smartasset.com/retirement/find-a-financial-planner?utm_source=smartasset&utm_medium=referral&utm_campaign=sma__falc_relevant&utm_content=howmuchshouldyoucontrupdated). ## How Much Should I Contribute to My 401(k)? A [401(k)](https://smartasset.com/retirement/what-is-a-401k) is a retirement savings plan offered by many for-profit companies. These accounts allow you to decrease your current taxable income because you fund them with pre-tax dollars. Then, in retirement, you pay taxes on your withdrawals under the assumption that your tax rates will be lower as a retiree than they are now. However, it’s not a savings account, so your money doesn’t just sit and grow automatically. Your employer chooses some investment options, and then it is typically up to you to create a [portfolio](https://smartasset.com/investing/what-is-an-investment-portfolio) of market-reliant investments. In other words, like any other investment, 401(k)s do have plenty of risk associated with them. Saving between 10% and 15% of your gross salary toward retirement is a general rule of thumb to follow, but everyone’s situation is different. These savings could come in the form of a 401(k) or in another kind of account, like a [Roth IRA](https://smartasset.com/retirement/what-is-a-roth-ira) or even a [traditional savings account](https://smartasset.com/checking-account/best-savings-accounts). Again, these percentages are just a general rule. The actual amount you should save depends on your situation. For example, if you are 50 years old and don’t have any retirement savings, you may need to save more than 20% of your gross annual salary to feel comfortable. If you’re 30 years old and already have \$100,000 in retirement savings, you could probably decrease your contributions for a bit to [pay off a mortgage](https://smartasset.com/mortgage/mortgage-calculator) or loan should you have one. It’s difficult to create a one-size-fits-all plan because everyone is in a different place with his or her finances. Saving 10% to 20% of your salary every year might sound like a lot. Luckily, you don’t have to do it all at once. You can spread your contributions out throughout the year and you can contribute more or less some years. You also don’t have to save all that money [through your 401(k)](https://smartasset.com/retirement/what-is-a-401k). Let’s take a step back and talk about other factors you should consider when you think about how much to contribute to your 401(k). ### 401(k) Contribution Limits Consistently contribution to your [401(k)](https://smartasset.com/retirement/401k-calculator) can turn it into a powerful tool for long-term wealth. However, you can’t just contribute an unlimited amount to it each year. For 2026, the most you can contribute is \$24,500 (up from \$23,500 in 2025). But if you’re 50 or older, the limit increases to \$32,500 (up from \$31,000 in 2025) due to the additional \$8,000 catch-up contribution limit (up from \$7,500 in 2025). Starting in 2025, if you are aged 60 to 63, you will be able to make an expanded catch-up contribution of \$11,250. Next Steps: Planning for retirement can be overwhelming. We recommend speaking with a financial advisor. This free tool will match you with vetted advisors who serve your area. Here's how it works: - [Answer a few easy questions](https://smartasset.com/retirement/find-a-financial-planner?utm_source=smartasset&utm_campaign=zipcode&utm_content=sa-retirement-bl-howmuchsho), so we can find a match. - Our tool matches you with vetted fiduciary advisors who can help you on the path toward achieving your financial goals. It only takes a few minutes. - Check out the advisors' profiles, have an introductory call on the phone or introduction in person, and choose who to work with. Enter your ZIP code to find your matches: Find Your Advisor ## Build Your Emergency Fund You want to save as much as you can for retirement, but you shouldn’t put all of your savings toward retirement. You should always have enough cash reserves to cover necessary expenses like food and rent. It’s also a good idea to create an emergency fund. An [emergency fund](https://smartasset.com/checking-account/top-5-reasons-to-have-an-emergency-fund) will protect you from unexpected expenses or difficult financial situations. What would you do if you lost your job or didn’t have a regular salary for a month? What if a family member got sick and you had medical bills to pay? A strong emergency fund allows you to get through tough times. Withdrawing money from your retirement accounts should be an absolute last resort. Just as importantly, an emergency fund will ease your mind by providing a sense of security. It’s always nice to know that you have a backup plan in case something goes wrong. Again, there is no perfect answer for how much you should have in an emergency fund. It depends on your situation. In general, though, you want enough to cover at least a few months of expenses. That may sound like a lot if currently have no emergency fund, but you can build your fund over time by adding a little each week or month. ## Contribute Enough for the Full Employer Match You have enough saved up to cover your expenses. Your emergency fund is there in case you need it. Now you’re starting to think about 401(k) contributions. Where do you start? The first thing you should figure out is if you have an employer matching program with your 401(k). With an employer match, your [employer will match your 401(k)](https://smartasset.com/retirement/does-employer-match-count-toward-the-401k-limit) contributions up to a certain percentage of your gross salary. Say your employer offers 100% match on the first 5% you contribute. That means if you contribute 5% of your gross salary to your 401(k), your employer will contribute an amount equal to 5% of your gross salary. The total contribution to your 401(k) would then equal 10% of your gross salary. An employer match allows you to increase your contribution, and you should always take advantage of matching programs. Unfortunately, many people pass up free money by not contributing up to their employer match. ## Invest in IRAs and Roth IRAs ![A couple discuss with their advisor how much to contribute to their 401(k).](https://smartasset.com/wp-content/uploads/sites/2/2019/05/rsz_istock-540596942.jpg) If you remember the rule of thumb from earlier, experts advise saving around 15% of your gross salary each year for retirement. You could put this all in your 401(k), but you should consider some other options once you cover your 401(k) match. If you’re single and earn less than \$168,000, you qualify for a Roth IRA in 2026. If you’re married, file jointly and earn less than \$257,000 in 2026 you also qualify for a Roth IRA. Those amounts are up from \$165,000 and \$246,000 in 2025. This is a retirement savings vehicle that you can open at virtually any bank or financial institution. You fund these with after-tax dollars. So your contributions won’t reduce your taxable income. However, eligible withdrawals you make after turning 59 ½ are tax-free. It’s good to have a mix of taxable and non-taxable income in your retirement. Roth IRAs are particularly useful for young people who are just starting their careers. Chances are that if you just graduated from college, you’re in a lower tax bracket than you will be in when you retire. Paying the income tax now instead of later can save you money, especially when you need it the most ### Roth IRA and Roth 401(k) Contribution Limits In 2026, you can contribute up to \$7,500 to a Roth IRA. The \$1,100 catch-up contribution for those who are at least 50 years old can raise that to \$8,600. These are tan increase from \$7,000 and \$1,000, respectively, in 2025. In addition, your employer may also offer a [Roth 401(k)](https://smartasset.com/retirement/what-is-a-roth-401k), which takes after-tax money just like a Roth IRA. For 2026, the contribution limit is \$24,500, the same as a traditional 401(k). The catch-up contribution limits are also the same at \$8,000 for people age 50 or older and \$11,250 for those 60 to 63 years old. That makes the total 2026 contribution limit for those over 50 and between 60 and 63 \$32,500 and \$35,750, respectively. You can also invest in a traditional IRA, which takes pre-tax dollars and lessens your taxable income just like a 401(k). Some people also have an IRA because when they left a previous employer, they moved their 401(k) funds into an IRA via an [IRA rollover](https://smartasset.com/retirement/how-to-make-an-ira-rollover). ## Max Out Your Retirement Accounts Maxing out your retirement accounts can significantly increase long-term savings due to the power of tax advantages and compound growth. Contributing the maximum allowable amount to a 401(k) and a Roth IRA each year can help build wealth faster, especially when starting early. If you contribute the maximum, every year for 30 years, assuming a 7% annual return, your retirement savings could grow to approximately \$3 million. If you contribute only half of those limits, you would end up with less than half that amount. Over time, the difference in contributions results in a significant gap in retirement wealth, showing how consistent savings and compounding work together. ## Bottom Line ![A man sitting next to a piggy bank.](https://smartasset.com/wp-content/uploads/sites/2/2019/05/rsz_istock-504302802.jpg) Saving 10% to 15% of your gross salary for retirement each year is just a general rule. Your goal should be to save as much for retirement as you can. Before anything else, you should ensure that you have enough savings to cover regular expenses and emergencies. If you have an employer match on your 401(k), you should contribute enough to cover the full match. If you qualify for a [Roth IRA](https://smartasset.com/retirement/how-to-open-a-roth-ira), you should try to max it out. It’ll provide a source of nontaxable income in your retirement. Once you’ve done those things you should contribute as much to your 401(k) or IRA as you can. The most important thing is to contribute regularly – even if you can only save a little bit. It’s hard to prioritize your future over the things you want now, but you will thank yourself if you save while you’re young. ## Tips for Contributing to Your 401(k) - If you’re struggling to get started or stay on track with your retirement savings, consider [working with a financial advisor](https://smartasset.com/retirement/find-a-financial-planner?utm_source=smartasset&utm_medium=referral&utm_campaign=sma__falc_relevant&utm_content=howmuchshouldyoucontrupdated). Finding a financial advisor doesn’t have to be hard. [SmartAsset’s free tool](https://smartasset.com/retirement/find-a-financial-planner?utm_source=smartasset&utm_medium=referral&utm_campaign=sma__falc_relevant&utm_content=howmuchshouldyoucontrupdated) matches you with vetted financial advisors who serve your area, and you can have a free introductory call with your advisor matches to decide which one you feel is right for you. If you’re ready to find an advisor who can help you achieve your financial goals, [get started now](https://smartasset.com/retirement/find-a-financial-planner?utm_source=smartasset&utm_medium=referral&utm_campaign=sma__falc_relevant&utm_content=howmuchshouldyoucontrupdated). - If you switch jobs, you can no longer contribute to a previous employer’s 401(k) plan. You don’t want to lose the hard work you did to save that money, so you should look to make a [direct 401(k) rollover](https://smartasset.com/retirement/why-you-should-rollover-your-old-401k-directly-to-a-new-401k) to your new employer’s plan. - A traditional IRA and a 401(k) offer similar tax benefits. You might wonder whether one is a better option for you. Here’s an article to help you think about [an IRA vs. a 401(k)](https://smartasset.com/retirement/ira-vs-401k). - You should always avoid early withdrawals from your 401(k). Not only will you have to pay the income tax, you’ll have to a pay 10% penalty. There are a couple of ways you could avoid that big penalty though. If you really think you need to withdraw money early, here’s more information on [401(k) withdrawals](https://smartasset.com/retirement/all-about-401k-withdrawals). Photo credit: ©iStock.com/DNY59, ©iStock.com/FatCamera, ©iStock.com/SIphotography [Derek Silva, CEPF®](https://smartasset.com/author/derek-silva)Derek Silva is determined to make personal finance accessible to everyone. He writes on a variety of personal finance topics for SmartAsset, serving as a retirement and credit card expert. Derek is a Certified Educator in Personal Finance® (CEPF®). He has a degree from the University of Massachusetts Amherst and has spent time as an English language teacher in the Portuguese autonomous region of the Azores. The message Derek hopes people take away from his writing is, “Don’t forget that money is just a tool to help you reach your goals and live the lifestyle you want.” Loading Related Articles... ![]() ![]() ![]() ![]() Recent posts - [![](https://smartasset.com/cds-images/articles/suit.webp)Revealed: Annual List of Top Financial Advisor Firms](https://insights.smartasset.com/topfa?utm_source=smartasset&utm_campaign=sma__falc_content_relatedposts_retire&utm_content=topfa_suit "Revealed: Annual List of Top Financial Advisor Firms") - [![](https://smartasset.com/cds-images/articles/jetski.webp)How to Potentially Reduce RMD Taxes After Age 73](https://insights.smartasset.com/strategies-rmd-tax-after-73?utm_source=smartasset&utm_campaign=sma__falc_content_relatedposts_retire&utm_content=stratrmd73_jetski "How to Potentially Reduce RMD Taxes After Age 73") - [![](https://smartasset.com/cds-images/articles/eric.webp)How Irrevocable Trusts Can Help Eliminate Estate Taxes](https://insights.smartasset.com/sem/how-irrevocable-trusts-can-help-eliminate-estate-taxes?utm_source=smartasset&utm_campaign=sma__falc_content_relatedposts_retire&utm_content=irrevoctrust_eric "How Irrevocable Trusts Can Help Eliminate Estate Taxes") More from SmartAsset - [Compare Financial Advisor Matches Today](https://smartasset.com/retirement/find-a-financial-planner?utm_source=smartasset&utm_campaign=blog_right_rail) - [How to Find and Choose a Financial Advisor](https://smartasset.com/retirement/financial-advisor) - [The Top Financial Advisors in the U.S.](https://smartasset.com/financial-advisor/us-top-financial-advisors) - [How Much Do I Need to Save for Retirement?](https://smartasset.com/retirement/retirement-calculator) - [Mortgage Calculator](https://smartasset.com/mortgage/mortgage-calculator) - [Compare Mortgage Rates](https://smartasset.com/mortgage/mortgage-rates) Categories - [Advisor Resources](https://smartasset.com/advisor-resources) - [Auto](https://smartasset.com/auto) - [Career](https://smartasset.com/career) - [Checking Account](https://smartasset.com/checking-account) - [Credit Cards](https://smartasset.com/credit-cards) - [Credit Score](https://smartasset.com/credit-score) - [Data Studies](https://smartasset.com/data-studies) - [Debt](https://smartasset.com/debt) - [Estate Planning](https://smartasset.com/estate-planning) - [Financial Advisor](https://smartasset.com/financial-advisor) - [Insights](https://smartasset.com/insights) - [Insurance](https://smartasset.com/insurance) - [Investing](https://smartasset.com/investing) - [Life Insurance](https://smartasset.com/life-insurance) - [Mortgage](https://smartasset.com/mortgage) - [Personal Finance](https://smartasset.com/personal-finance) - [Personal Loans](https://smartasset.com/personal-loans) - [Refinance](https://smartasset.com/refinance) - [Retirement](https://smartasset.com/retirement) - [Small Business](https://smartasset.com/small-business) - [Student Loans](https://smartasset.com/student-loans) - [Taxes](https://smartasset.com/taxes) Get in touch [Contact](https://smartasset.com/about#contact) [Careers](https://smartasset.com/careers) SmartAsset [Search](https://smartasset.com/search) [About](https://smartasset.com/about) [SmartReads](https://smartasset.com/blog) [Captivate](https://smartasset.com/captivate) [SmartAsset AMP](https://getamp.smartasset.com/) [Advisor Testimonials](https://get.smartasset.com/advisor-testimonials/) [Press](https://smartasset.com/press) [SmartAdvisorMatch](https://smartadvisormatch.com/) Get Social [Like on Facebook](https://facebook.com/smartasset) [Like on X](https://x.com/@smartasset) [Follow on LinkedIn](https://www.linkedin.com/company/smartasset-com) Legal Stuff [Terms of Service](https://smartasset.com/terms) [Privacy Policy](https://smartasset.com/privacy) [AdChoices](https://optout.aboutads.info/#!/) [GLB Notice](https://smartasset.com/glb-notice) [Online Tracking Opt-Out Guide](https://smartasset.com/privacy#opt_out) SmartAsset Advisors, LLC ("SmartAsset"), a wholly owned subsidiary of Financial Insight Technology, is registered with the U.S. Securities and Exchange Commission as an investment adviser. 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Readable Markdown	Determining how much you should contribute to your [401(k)](https://smartasset.com/retirement/401k-calculator) depends on factors like employer matching, tax benefits and personal financial goals. Some aim to contribute enough to maximize their employer match, while others strive to reach the annual IRS limit. A common recommendation is to allocate at least 10% to 15% of your salary, but individual circumstances, such as debt obligations and living expenses, play a role in setting the right percentage. Adjusting contributions over time can help balance retirement savings with short-term financial needs. Do you have retirement planning questions or need help saving? [Speak with a financial advisor who serves your area today](https://smartasset.com/retirement/find-a-financial-planner?utm_source=smartasset&utm_medium=referral&utm_campaign=sma__falc_relevant&utm_content=howmuchshouldyoucontrupdated). A [401(k)](https://smartasset.com/retirement/what-is-a-401k) is a retirement savings plan offered by many for-profit companies. These accounts allow you to decrease your current taxable income because you fund them with pre-tax dollars. Then, in retirement, you pay taxes on your withdrawals under the assumption that your tax rates will be lower as a retiree than they are now. However, it’s not a savings account, so your money doesn’t just sit and grow automatically. Your employer chooses some investment options, and then it is typically up to you to create a [portfolio](https://smartasset.com/investing/what-is-an-investment-portfolio) of market-reliant investments. In other words, like any other investment, 401(k)s do have plenty of risk associated with them. Saving between 10% and 15% of your gross salary toward retirement is a general rule of thumb to follow, but everyone’s situation is different. These savings could come in the form of a 401(k) or in another kind of account, like a [Roth IRA](https://smartasset.com/retirement/what-is-a-roth-ira) or even a [traditional savings account](https://smartasset.com/checking-account/best-savings-accounts). Again, these percentages are just a general rule. The actual amount you should save depends on your situation. For example, if you are 50 years old and don’t have any retirement savings, you may need to save more than 20% of your gross annual salary to feel comfortable. If you’re 30 years old and already have \$100,000 in retirement savings, you could probably decrease your contributions for a bit to [pay off a mortgage](https://smartasset.com/mortgage/mortgage-calculator) or loan should you have one. It’s difficult to create a one-size-fits-all plan because everyone is in a different place with his or her finances. Saving 10% to 20% of your salary every year might sound like a lot. Luckily, you don’t have to do it all at once. You can spread your contributions out throughout the year and you can contribute more or less some years. You also don’t have to save all that money [through your 401(k)](https://smartasset.com/retirement/what-is-a-401k). Let’s take a step back and talk about other factors you should consider when you think about how much to contribute to your 401(k). ### 401(k) Contribution Limits Consistently contribution to your [401(k)](https://smartasset.com/retirement/401k-calculator) can turn it into a powerful tool for long-term wealth. However, you can’t just contribute an unlimited amount to it each year. For 2026, the most you can contribute is \$24,500 (up from \$23,500 in 2025). But if you’re 50 or older, the limit increases to \$32,500 (up from \$31,000 in 2025) due to the additional \$8,000 catch-up contribution limit (up from \$7,500 in 2025). Starting in 2025, if you are aged 60 to 63, you will be able to make an expanded catch-up contribution of \$11,250. ## Build Your Emergency Fund You want to save as much as you can for retirement, but you shouldn’t put all of your savings toward retirement. You should always have enough cash reserves to cover necessary expenses like food and rent. It’s also a good idea to create an emergency fund. An [emergency fund](https://smartasset.com/checking-account/top-5-reasons-to-have-an-emergency-fund) will protect you from unexpected expenses or difficult financial situations. What would you do if you lost your job or didn’t have a regular salary for a month? What if a family member got sick and you had medical bills to pay? A strong emergency fund allows you to get through tough times. Withdrawing money from your retirement accounts should be an absolute last resort. Just as importantly, an emergency fund will ease your mind by providing a sense of security. It’s always nice to know that you have a backup plan in case something goes wrong. Again, there is no perfect answer for how much you should have in an emergency fund. It depends on your situation. In general, though, you want enough to cover at least a few months of expenses. That may sound like a lot if currently have no emergency fund, but you can build your fund over time by adding a little each week or month. ## Contribute Enough for the Full Employer Match You have enough saved up to cover your expenses. Your emergency fund is there in case you need it. Now you’re starting to think about 401(k) contributions. Where do you start? The first thing you should figure out is if you have an employer matching program with your 401(k). With an employer match, your [employer will match your 401(k)](https://smartasset.com/retirement/does-employer-match-count-toward-the-401k-limit) contributions up to a certain percentage of your gross salary. Say your employer offers 100% match on the first 5% you contribute. That means if you contribute 5% of your gross salary to your 401(k), your employer will contribute an amount equal to 5% of your gross salary. The total contribution to your 401(k) would then equal 10% of your gross salary. An employer match allows you to increase your contribution, and you should always take advantage of matching programs. Unfortunately, many people pass up free money by not contributing up to their employer match. ## Invest in IRAs and Roth IRAs ![A couple discuss with their advisor how much to contribute to their 401(k).](https://smartasset.com/wp-content/uploads/sites/2/2019/05/rsz_istock-540596942.jpg) If you remember the rule of thumb from earlier, experts advise saving around 15% of your gross salary each year for retirement. You could put this all in your 401(k), but you should consider some other options once you cover your 401(k) match. If you’re single and earn less than \$168,000, you qualify for a Roth IRA in 2026. If you’re married, file jointly and earn less than \$257,000 in 2026 you also qualify for a Roth IRA. Those amounts are up from \$165,000 and \$246,000 in 2025. This is a retirement savings vehicle that you can open at virtually any bank or financial institution. You fund these with after-tax dollars. So your contributions won’t reduce your taxable income. However, eligible withdrawals you make after turning 59 ½ are tax-free. It’s good to have a mix of taxable and non-taxable income in your retirement. Roth IRAs are particularly useful for young people who are just starting their careers. Chances are that if you just graduated from college, you’re in a lower tax bracket than you will be in when you retire. Paying the income tax now instead of later can save you money, especially when you need it the most ### Roth IRA and Roth 401(k) Contribution Limits In 2026, you can contribute up to \$7,500 to a Roth IRA. The \$1,100 catch-up contribution for those who are at least 50 years old can raise that to \$8,600. These are tan increase from \$7,000 and \$1,000, respectively, in 2025. In addition, your employer may also offer a [Roth 401(k)](https://smartasset.com/retirement/what-is-a-roth-401k), which takes after-tax money just like a Roth IRA. For 2026, the contribution limit is \$24,500, the same as a traditional 401(k). The catch-up contribution limits are also the same at \$8,000 for people age 50 or older and \$11,250 for those 60 to 63 years old. That makes the total 2026 contribution limit for those over 50 and between 60 and 63 \$32,500 and \$35,750, respectively. You can also invest in a traditional IRA, which takes pre-tax dollars and lessens your taxable income just like a 401(k). Some people also have an IRA because when they left a previous employer, they moved their 401(k) funds into an IRA via an [IRA rollover](https://smartasset.com/retirement/how-to-make-an-ira-rollover). ## Max Out Your Retirement Accounts Maxing out your retirement accounts can significantly increase long-term savings due to the power of tax advantages and compound growth. Contributing the maximum allowable amount to a 401(k) and a Roth IRA each year can help build wealth faster, especially when starting early. If you contribute the maximum, every year for 30 years, assuming a 7% annual return, your retirement savings could grow to approximately \$3 million. If you contribute only half of those limits, you would end up with less than half that amount. Over time, the difference in contributions results in a significant gap in retirement wealth, showing how consistent savings and compounding work together. ## Bottom Line ![A man sitting next to a piggy bank.](https://smartasset.com/wp-content/uploads/sites/2/2019/05/rsz_istock-504302802.jpg) Saving 10% to 15% of your gross salary for retirement each year is just a general rule. Your goal should be to save as much for retirement as you can. Before anything else, you should ensure that you have enough savings to cover regular expenses and emergencies. If you have an employer match on your 401(k), you should contribute enough to cover the full match. If you qualify for a [Roth IRA](https://smartasset.com/retirement/how-to-open-a-roth-ira), you should try to max it out. It’ll provide a source of nontaxable income in your retirement. Once you’ve done those things you should contribute as much to your 401(k) or IRA as you can. The most important thing is to contribute regularly – even if you can only save a little bit. It’s hard to prioritize your future over the things you want now, but you will thank yourself if you save while you’re young. ## Tips for Contributing to Your 401(k) - If you’re struggling to get started or stay on track with your retirement savings, consider [working with a financial advisor](https://smartasset.com/retirement/find-a-financial-planner?utm_source=smartasset&utm_medium=referral&utm_campaign=sma__falc_relevant&utm_content=howmuchshouldyoucontrupdated). Finding a financial advisor doesn’t have to be hard. [SmartAsset’s free tool](https://smartasset.com/retirement/find-a-financial-planner?utm_source=smartasset&utm_medium=referral&utm_campaign=sma__falc_relevant&utm_content=howmuchshouldyoucontrupdated) matches you with vetted financial advisors who serve your area, and you can have a free introductory call with your advisor matches to decide which one you feel is right for you. If you’re ready to find an advisor who can help you achieve your financial goals, [get started now](https://smartasset.com/retirement/find-a-financial-planner?utm_source=smartasset&utm_medium=referral&utm_campaign=sma__falc_relevant&utm_content=howmuchshouldyoucontrupdated). - If you switch jobs, you can no longer contribute to a previous employer’s 401(k) plan. You don’t want to lose the hard work you did to save that money, so you should look to make a [direct 401(k) rollover](https://smartasset.com/retirement/why-you-should-rollover-your-old-401k-directly-to-a-new-401k) to your new employer’s plan. - A traditional IRA and a 401(k) offer similar tax benefits. You might wonder whether one is a better option for you. Here’s an article to help you think about [an IRA vs. a 401(k)](https://smartasset.com/retirement/ira-vs-401k). - You should always avoid early withdrawals from your 401(k). Not only will you have to pay the income tax, you’ll have to a pay 10% penalty. There are a couple of ways you could avoid that big penalty though. If you really think you need to withdraw money early, here’s more information on [401(k) withdrawals](https://smartasset.com/retirement/all-about-401k-withdrawals). Photo credit: ©iStock.com/DNY59, ©iStock.com/FatCamera, ©iStock.com/SIphotography
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