What Is 401(k) Contribution?

A 401(k) is an employer-sponsored retirement savings plan. Contributions are deducted from your paycheck BEFORE income taxes are calculated (pre-tax), which lowers your current taxable income. For 2026, the maximum employee contribution is $24,500 ($32,500 for workers 50+). Many employers offer a "match" — for example, dollar-for-dollar up to 4% — which is essentially free money. Roth 401(k) contributions are made after-tax but grow tax-free.

Common paystub code: 401K / ROTH401K

Where You'll See 401(k) Contribution

Related Terms

Generate a paystub showing 401(k) Contribution clearly with our free paystub generator, or browse the full payroll glossary (44+ terms explained).

This paystub generator is a simulation/mockup tool for personal record-keeping and verification purposes only.