401(k) Paycheck Impact

401(k) Contribution Paycheck Impact

How much does a 401(k) contribution actually reduce your take-home pay? Tax savings make the real cost smaller than you'd think.

Inputs

Annual salary ($)

401(k) contribution (% of salary)

Federal + state tax rate (%)

Pay frequency

Results

Net paycheck change

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Paycheck without 401(k)

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Paycheck with 401(k)

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Per-paycheck contribution

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Tax savings per paycheck

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Annual tax savings

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2025 employee 401(k) limit: $23,500 (age 50+ catch-up adds $7,500; ages 60–63 enhanced catch-up $11,250). FICA (7.65%) still applies to 401(k) contributions. Simplified marginal-rate calculation.