How 401(k) contribution limits stack up
A defined contribution plan in the United States is usually a 401(k), and two separate ceilings apply. One caps what you may defer from your own pay, and the other caps everything that lands in the account for the year, including whatever the employer puts in. Enter your pay, your deferral rate, the employer rate and the two dollar limits to see where each ceiling bites.
Because the dollar limits are indexed and change every year, they are entered rather than built in. The annual additions ceiling is the lesser of the dollar limit and your compensation, so a low-paid participant is capped by pay rather than by the dollar figure.
Statutory basis (as of September 2026) — the elective deferral limit is 26 U.S.C. 402(g) and the annual additions limit is 26 U.S.C. 415(c)(1), which caps total contributions at the lesser of the indexed dollar amount or 100 percent of compensation. Compensation that may be counted is itself limited by 26 U.S.C. 401(a)(17), and age-based catch-up contributions under 26 U.S.C. 414(v) sit outside these figures.
This calculator is for reference only and is not legal advice or tax advice. Plan documents, nondiscrimination testing and vesting rules can change the result, so consult a qualified plan administrator or tax professional about your specific situation.
Frequently Asked Questions
No. Employer contributions do not count against the 26 U.S.C. 402(g) elective deferral limit, but they do count toward the 26 U.S.C. 415(c) annual additions ceiling along with your own deferrals.
Because 26 U.S.C. 415(c)(1) sets the ceiling at the lesser of the dollar limit or 100 percent of compensation. If your pay is below the dollar limit, your pay becomes the ceiling.