Virginia workers can defer up to $24,500 to a 401k in 2026, plus an $8,000 catch-up at age 50+, with combined employee and employer contributions capped at $72,000. Virginia's top marginal income tax rate is about 5.75%. Traditional 401k deferrals typically reduce Virginia taxable income as well as federal. Typical employer matches are often 3–6% of pay. Educational only.
401(k) and IRA projections update as you type — educational only.
Virginia: top rate to ~5.75% — traditional 401(k) deferrals usually reduce VA taxable income; model 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
The 4% rule is a general guideline, not a guarantee. This is not financial advice.
Balance breakdown (stacked)
| 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 | Enhanced catch-up (federal) |
| Total with employer match | Up to $72,000 | Combined limit |
Virginia taxes wage income at graduated rates with a top marginal rate up to about 5.75%. Pre-tax traditional 401k deferrals generally reduce both federal and Virginia taxable income, which lowers current state tax for many workers. Traditional 401k withdrawals are generally subject to Virginia income tax in retirement. Roth 401k choices depend on federal and Virginia rules for contributions and qualified distributions — confirm with a tax professional.
| 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 |
Traditional 401k deferrals save federal and generally Virginia tax now at rates up to about 5.75% at the top bracket. Roth 401k trades that upfront savings for potential federally tax-free qualified withdrawals. Typical 3–6% employer matches are often traditional dollars. Many workers capture the full match first, then split additional savings based on expected retirement tax rates.
The IRS sets the same limits nationwide: $24,500 in employee deferrals for 2026. Workers aged 50 and older can add an $8,000 catch-up for $32,500 total. Optional higher catch-ups may apply at ages 60–63 under federal rules. Combined employee and employer contributions can reach up to $72,000 in 2026 (plus catch-ups where allowed).
Virginia has progressive income tax with a top marginal rate up to about 5.75%. Traditional 401k salary deferrals generally reduce both federal and Virginia taxable income, lowering current state tax. Distributions from traditional 401k accounts are generally taxable in Virginia in retirement.
Many Virginia employers match about 3% to 6% of salary when you defer enough to earn the full match. Always contribute enough to capture the full match. The combined employee plus employer limit is $72,000 in 2026 before age-based catch-ups.
Traditional 401k lowers federal and generally Virginia taxable income now — helpful when your marginal VA rate approaches 5.75%. Roth 401k uses after-tax dollars but can provide federally tax-free qualified withdrawals; confirm Virginia treatment of Roth distributions with a tax advisor.
Total contributions from you and your employer generally cannot exceed $72,000 in 2026 (plus allowed catch-ups). Employer matching dollars count toward that cap.
Many employers in Virginia offer Roth 401k. After-tax contributions grow federally tax-free if qualified; weigh current VA tax on Roth deferrals against your expected retirement tax picture.
Educational estimates only. Not financial or tax advice.