TALLIVOMethodology
How the 401(k) Calculator works
How Tallivo projects a 401(k) balance with salary growth, the IRS employee contribution limit, and an employer match.
The formula
balance′ = balance × (1 + r) + min(salary × c%, IRS limit) + salary × min(c%, cap%) × match%
Step by step
- Each projection year, the balance grows at the expected return first; that year's contributions are added at year-end (a conservative ordering).
- Salary increases by the annual raise after year one, so a fixed contribution percentage yields growing dollar contributions.
- The employee deferral is capped at the 2026 IRS elective-deferral limit of $24,500 (IRS Notice 2025-67), held constant across the projection since future limits aren't knowable.
- The employer match is match% of contributed pay on up to cap% of salary (e.g. 50% up to 6% → 3% of salary), and is not reduced by the employee cap.
Assumptions & limitations
- No age-50+ catch-up contributions, plan fees, vesting schedules, or employer true-ups.
- A constant nominal return — real markets fluctuate; figures are pre-tax account balances, not after-tax values.
- Contributions continue every year to retirement age with no breaks or loans.
Sources
Reviewed and updated for the 2026 tax year. Figures are planning estimates, not a loan offer — this is not financial advice.
Think one of these figures is wrong? Tell us and we'll check it — we verify against the primary source, not aggregator tables. How we build and check every calculator is documented in our editorial policy.