Glossary · New Zealand, Australia and the United States
Contributions
What goes into a retirement savings account from your pay each year, as a share of your salary before tax. The government's rules for each account set the tax on the way in, the limits and any top-ups.
- NZ KiwiSaver: from April 2026 the default is 3.5% from you and a mandatory 3.5% from your employer (both 4% from April 2028). Your share comes out of after-tax pay. Your employer's share is taxed before it lands (ESCT, 10.5–39% by your pay). The government adds 25c for every $1 you put in, up to $260.72 a year, while you're 18–64 and earning up to $180,000.
- AU Super: your employer must pay 12% (the super guarantee). Your own share is salary sacrifice by default (taken before income tax), or after tax if you choose. Before-tax money is taxed 15% inside the fund, up to the $30,000 concessional cap (an extra 15% applies once income and contributions pass $250,000). After-tax contributions earn the co-contribution (50c per $1 up to $500 on incomes to about $47,000, tapering out by $62,000), and incomes up to $37,000 get the 15% refunded (up to $500).
- US 401(k): your share is before tax and limited to $24,500 a year ($32,500 from 50); your employer's match is on top. Traditional IRA: before tax, $7,500 ($8,600 from 50), shared with any Roth. Roth IRA: after tax, same limit, and it tapers to nothing between $153,000 and $168,000 of income (single filer). Anything above a limit stays in your pay.