Model a Contribution-Pause Scenario
How the Scenario Works
Each paused monthly contribution is compounded from the month it would have been made to the selected end age. The calculation assumes one constant return before fees and taxes, no later catch-up contributions, and no change in the contribution amount.
| Assumption | Why it matters | Better input |
|---|---|---|
| Paused monthly amount | Employee deferral and employer match can both stop. | Use payroll records and the plan’s match formula. |
| Pause length | Eligibility and waiting periods vary by employer. | Use the old and new plan documents. |
| Return | Future returns are uncertain and can be negative. | Run several conservative assumptions, including 0%. |
| End age | More time changes compounding substantially. | Choose the age relevant to your planning horizon. |
Current 2026 Contribution Limits
The IRS states that the 2026 employee elective-deferral limit for most 401(k), 403(b), governmental 457 plans, and the federal Thrift Savings Plan is $24,500. The general age-50 catch-up limit is $8,000, with a higher $11,250 limit for eligible participants ages 60–63. The 2026 IRA contribution limit is $7,500, with a $1,100 age-50 catch-up. Eligibility, compensation, income, and plan rules still apply.
Transition Checklist
Before leaving, record vesting, outstanding loans, rollover options, plan fees, and the last date to change contributions. At the new employer, confirm eligibility, match, enrollment timing, and default investments. Do not assume an IRA contribution is allowed without checking compensation and income rules.
Compare four scenarios: no pause, planned pause, longer pause, and planned catch-up after re-employment. A tax professional or fiduciary adviser can help with Roth conversions, rollovers, plan loans, and account-specific tax consequences.
Methodology and Limits
The model treats each skipped monthly contribution as a separate amount compounded monthly at the selected annual rate until the end age. It does not model volatility, inflation, fees, taxes, contribution limits, vesting, withdrawals, or later behavior.
Primary resource reviewed July 23, 2026: IRS retirement-limit guidance linked above. Educational only; not tax, investment, or financial advice.