What is the 401k contribution limit in Minnesota for 2026?
The IRS sets the employee 401k deferral limit at $24,500 for 2026, with an $8,000 catch-up for participants age 50 and older ($32,500 total).
401k Calculator Minnesota 2026
Minnesota workers can defer up to $24,500 to a 401k in 2026 ($32,500 with the $8,000 catch-up at age 50+). Traditional 401k deferrals typically reduce Minnesota taxable income as well as federal, which matters at marginal rates up to about 9.85%. Typical employer matches run 3–6%. Roth 401k may be available for after-tax federally tax-free qualified growth.
401(k) and IRA projections update as you type — educational only.
Minnesota: traditional deferrals generally reduce MN taxable income — calculator is federal-focused. Not financial or tax advice.
IRS cap $24,500/yr
Simplified model: 100% match up to this % of salary. Actual employer formulas vary (e.g. 50% up to 6%, tiered match, etc.)
Your contributions grow as your salary grows.
Projected balance
$1,472,304
Your contributions$344,829
Employer match$103,449
Investment growth$999,027
Monthly at retirement (4% rule)$4,908
Years to retirement30
The 4% rule is a general guideline, not a guarantee. This is not financial advice.
Balance breakdown (stacked)
Your contributionsEmployer matchGrowth
401k Contribution Limits 2026
| Type | 2026 Limit | Notes |
|---|---|---|
| Employee contribution | $24,500 | IRS |
| Catch-up (age 50+) | +$8,000 | Total $32,500 |
| Catch-up (age 60–63, if eligible) | +$11,250 | Federal |
| Total with employer match | Up to $72,000 | Combined |
Minnesota 401k Tax Treatment — Deferrals Reduce State Taxable Income
Traditional elective deferrals usually lower Minnesota taxable wages, saving state tax at graduated rates with a top bracket around 9.85% for high earners, plus federal savings. Distributions from traditional accounts are generally taxed when received.
401k Savings Growth Example (Minnesota)
| Monthly Contribution | Years | 7% Return | Est. Balance |
|---|---|---|---|
| $500 | 20 | 7% | ~$262,000 |
| $1,000 | 20 | 7% | ~$524,000 |
| $2,042 ($24,500/yr) | 20 | 7% | ~$1,071,000 |
| $2,042 ($24,500/yr) | 30 | 7% | ~$2,467,000 |
Minnesota Traditional vs Roth 401k 2026
High Minnesota marginal rates strengthen the case for traditional deferrals to reduce current tax. Roth 401k can still help if you expect lower retirement rates or want tax-free qualified withdrawals. Capture any 3–6% match first.
Frequently Asked Questions
Do Minnesota 401k contributions reduce state taxable income?
Yes — Minnesota generally conforms so traditional 401k elective deferrals reduce Minnesota taxable income, similar to federal. Minnesota’s top marginal income tax rate reaches about 9.85% for high earners.
What is a typical employer 401k match in Minnesota?
Healthcare, retail, and manufacturing employers in Minnesota often match about 3% to 6% of pay. Combined employee-employer contributions cap at $72,000 in 2026 before catch-ups.
Traditional or Roth 401k in Minnesota?
Traditional deferrals save federal and Minnesota tax now (marginal rates up to about 9.85%). Roth 401k uses after-tax federal dollars for potential federally tax-free qualified withdrawals.
What is the combined 401k contribution limit in 2026?
Employee deferrals plus employer contributions generally cannot exceed $72,000 in 2026, plus allowed catch-up amounts for eligible ages.
Is Roth 401k available in Minnesota?
Many Minnesota employers offer Roth 401k. Review your plan’s investment menu and auto-escalation settings.
Related calculators
Educational estimates only. Not financial or tax advice.