401(k) Retirement Calculator 💰
Estimate your retirement savings with employer matching contributions
401(k) Savings Projection
Enter your details to estimate your 401(k) balance at retirement
Rollover Options
Explore the best places to roll over your 401(k) when changing jobs
Investment Guide
Learn how to pick investments in your 401(k) to maximize growth
Roth 401(k) vs Traditional
Compare tax benefits to decide which retirement account is right for you
Understanding 401(k) Retirement Plans 🇺🇸
How 401(k) Plans Work
Traditional 401(k)
- Contributions are made pre-tax
- Reduces your current taxable income
- Investments grow tax-deferred
- Taxes paid on withdrawals in retirement
Roth 401(k)
- Contributions are made after-tax
- No immediate tax benefit
- Qualified withdrawals are tax-free
- No required minimum distributions
Key 401(k) Features
| Feature | 2025 Limits | Benefits |
|---|---|---|
| Employee Contribution Limit | $23,500 | Tax-advantaged retirement savings |
| Catch-up Contribution (50+) | $7,500 | Boost savings as retirement nears |
| Employer Match | Varies by plan | Free money towards retirement |
| Total Contribution Limit | $69,000 | Combined employee + employer contributions |
Maximizing Your 401(k)
Contribution Strategies
- Contribute at least enough to get full employer match
- Aim for 10-15% of salary including match
- Increase contributions with raises
- Take advantage of catch-up contributions at 50+
Investment Tips
- Diversify across asset classes
- Consider target-date funds for simplicity
- Rebalance portfolio annually
- Reduce risk as retirement approaches
Employer Matching Explained
Common Match Formulas
- 50% match up to 6% of salary
- 100% match up to 3% + 50% on next 2%
- Dollar-for-dollar up to 4%
- Profit-sharing contributions
Example Calculations
$60k salary, 5% contribution:
50% match up to 6% → $1,500 employee + $1,500 employer
$80k salary, 8% contribution:
100% on first 3% + 50% on next 2% → $6,400 employee + $4,000 employer
Withdrawal Rules & Penalties
Early Withdrawals
- 10% penalty if under age 59½
- Income taxes due on withdrawal amount
- Exceptions for hardship, disability, medical expenses
- Consider loan options before withdrawing
Required Minimum Distributions
- Must start by April 1 following year you turn 73
- Based on IRS life expectancy tables
- No RMDs for Roth 401(k) while owner is alive
- 50% penalty for missed RMDs
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Disclaimer:
This 401(k) calculator provides estimates based on the inputs provided. Actual account growth will vary based on market performance, contribution patterns, and plan rules. The calculator assumes consistent annual salary increases and rate of return, which may not reflect actual experience. Employer matching formulas vary by company - consult your plan documents for exact details. Contribution limits are subject to change by the IRS. This calculator does not account for taxes, fees, or early withdrawal penalties. Please consult with a financial advisor for personalized retirement planning advice.