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Retirement Plan Contribution Calculator

Knowing the IRS limits for your retirement accounts can help you avoid significant penalties while helping you decide how much to save for retirement. There are many different types of retirement accounts to choose from, and the best one for you will depend on your employment situation, budget and goals. 

Need help setting up a retirement account? Take advantage of our financial counseling services to learn which retirement accounts may be the best fit for you.

Already have a retirement account and are wondering about the IRS limits for contributions? Keep reading to learn how our retirement plan contribution calculator works. 

What are the current contribution limits for retirement plans?

The current contribution limits for retirement plans vary depending on the type of plan. You can use our calculator for estimating your retirement income needs and determine whether you should save the full contribution amount based on your budget. 

Want to know how much you need to save to retire? Try our retirement savings calculator

Retirement Plan Contribution Calculator

Since IRS contribution limits for retirement accounts vary by plan type, knowing exactly how much you can save each year can be challenging. You don’t want to over-contribute because you’ll be subject to penalties, but under-contributing means you’ll have less saved as you’re approaching retirement

Use our retirement plan contribution calculator to determine how much you can put in your retirement account before taxes are due.

How We Can Help You Save for Retirement

We can help you save for retirement by providing financial planning, advice and retirement accounts that are right for you based on your unique situation. We provide our members with the best investment, loan and bank account options to ensure they can properly and confidently manage their money. 

Wondering how you can start saving money today? Make progress towards reaching your retirement goals by opening a retirement account with us.

Plan for Your Retirement With a Traditional or Roth IRA Today!

Frequently Asked Questions

Using the retirement plan contribution calculator is simple. All you have to do is provide us with some basic information about your retirement plan, employment situation, income and taxes. 

  • General Info: Contribution limits vary by retirement plan type, so we need some general information about your plan and tax filing status, which affects how much you can contribute. 
    • Retirement plan: Your retirement plan is the type of plan you have. For example, you might have a 401(k), Roth IRA, SEP IRA or any other type of account. 
    • Tax filing status: Your tax filing status determines how your income is taxed. For instance, if you file taxes with your spouse, you’re married and filing jointly. If you’re unsure of your filing status, you can refer to last year’s tax returns if your situation has remained the same. 
  • About You & Your Spouse: To help us determine how much you can contribute, we need to learn more about you and your spouse, including income, employment situation and employer contributions to your retirement plan.
    • Current age: Your current age tells us whether or not you can make catch-up contributions, which will increase your contribution limits.
    • Annual income (before taxes): Your gross annual income tells us how much you earn, which directly affects how much you can contribute to some plans. 
    • Modified adjusted gross income: Modified adjusted gross income is your income after deductions. 
    • Self-employment tax paid: If you’re self-employed, you pay self-employment taxes on a quarterly basis. If you’re not self-employed, you can leave this section blank. 
    • Participate in a work retirement plan: We need to know if you have an employer-sponsored retirement plan because it can affect employer contribution limits. 
    • Employer cap on contributions: The cap on contributions is a percentage of your pay. If you’re unsure of a cap, you can ask your employer or HR department.

If you have an employer that offers retirement plan benefits, you may have already chosen or agreed to receive a retirement account through them. However, there are plenty of retirement plans you can get outside of work, which can help you exponentially grow your savings. 

  • Traditional 401(k): A traditional 401(k) is an employer-sponsored retirement plan that allows for employer contributions as part of your benefits package at work. Most employees contribute to these retirement accounts by having a portion of their income diverted directly to the account. IRS 401(k) contribution limits are high compared to other types of retirement accounts, but there are limited investment options. 
  • Roth 401(k): Roth 401(k)s are another type of employer-sponsored retirement account. However, with Roth 401(k)s, your contributions come from after-tax income. Then, withdrawals are tax-free when you withdraw them during retirement. 
  • Traditional IRA: A traditional IRA is available to anyone; it’s not an employer-sponsored plan. Contributions to a traditional IRA are tax-deferred, meaning you pay taxes when you withdraw the funds during retirement. Unfortunately, they have relatively low contribution limits compared to other retirement plan types, but may be a good choice for individuals who are just learning about retirement accounts. 
  • Roth IRA: With a Roth IRA, you pay taxes on the funds you contribute and withdraw funds tax-free in retirement. With these retirement accounts, you may pay less in taxes overall because take rates tend to increase over time. Additionally, there are more flexible IRS contribution limits. 
  • SIMPLE IRA: A Simple IRA is an employee retirement plan for small businesses. With these plans, you may receive contributions that are matched or guaranteed by your employer. However, contribution limits are lower than other types of retirement plans. 
  • SEP IRA: A SEP IRA is a type of IRA used by business owners and self-employed individuals. They have high contribution limits and work similarly to a traditional IRA. If you’re self-employed, you can contribute the employee and employer contributions at the same time.
  • Keogh Plan: The Keogh plan is another option for self-employed individuals. These are tax-deferred contribution retirement plans that are typically more expensive to maintain than other retirement accounts but come with higher contribution limits.

If you contribute too much to your retirement account, you can incur costly penalties that can be upward of 10 percent plus additional unpaid income taxes when you withdraw from the account. Many retirement accounts have systems in place to prevent you from over-contributing. For instance, many online portals prevent you from contributing too much based on the limits of accounts.

However, some don’t have these safeguards, so you should check the contribution limits each year to prevent this costly mistake.

The more you deposit into your retirement account, the faster your money can grow. Here are a few tips to help you maximize your retirement plan contributions even though there are limits to how much you can save each year:

Tips for maximizing retirement plan contributions

  • Start contributing early: The earlier you open a retirement account, the more interest you will accrue over time. Additionally, investing young can allow you to take on more risk, which can come with more rewards. 
  • Take advantage of employer matches: If your employer offers a retirement plan as part of your employee benefits package, you should take advantage of it. There will be no other opportunity to get someone else to match your contributions. 
  • Automate contributions: Automating contributions using your retirement account or investment platform’s app or website to set up direct deposit makes sure you never forget to save your money. 
  • Make catch-up contributions: If you’re over the age of 50, you can make catch-up contributions to help put more away for retirement. 
  • Create a budget: Building a better budget can ensure you can contribute the full amount to your retirement accounts.
  • Work with a professional: Working with a professional financial advisor can help you choose the best retirement plan based on your employment situation, risk tolerance and retirement goals.

Have more questions?

Chat with us online or stop by a local branch to talk with one of our experts.