401(k) Calculator

Calculate your 401(k) retirement savings with employer matching contributions, salary growth, and investment returns. See how much you will have at retirement.

401(k) Details

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% of your contribution employer matches

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% of salary eligible for match

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Enter your 401(k) details and click "Calculate" to see your retirement projection.

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Pro Tip

Always contribute at least enough to get your full employer match. Then consider maxing out a Roth IRA before increasing 401(k) contributions beyond the match, as IRAs typically offer more investment choices.

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Understanding Your 401(k)

A 401(k) is an employer-sponsored retirement savings plan that allows you to contribute a portion of your pre-tax salary. Your contributions reduce your taxable income, and your investments grow tax-deferred until withdrawal in retirement.

One of the biggest advantages of a 401(k) is the employer match. If your employer matches 50% of contributions up to 6% of salary, you are essentially getting free money. Not contributing enough to get the full match is leaving guaranteed returns on the table.

For 2024, the employee contribution limit is $23,000 (or $30,500 if you are 50 or older with catch-up contributions). Combined employee and employer contributions cannot exceed $69,000. These limits are adjusted annually for inflation.

Traditional 401(k) contributions are made pre-tax, reducing your current taxable income. Roth 401(k) contributions are made after-tax but grow and can be withdrawn tax-free in retirement. Your choice depends on whether you expect higher or lower tax rates in retirement.

401(k) Growth Formula

Balancen = (Balancen-1 + Employee Contrib + Employer Match) × (1 + r)

Where:

Balance = Account balance at end of year

Employee Contrib = Salary x Contribution Rate

Employer Match = min(Contrib, Salary x Match Limit) x Match Rate

r = Annual investment return

Example

$75,000 salary, 10% contribution, 50% match up to 6%, 7% return:

  • • Employee contribution: $75,000 x 10% = $7,500/year
  • • Eligible for match: min($7,500, $75,000 x 6%) = $4,500
  • • Employer match: $4,500 x 50% = $2,250/year
  • • Total annual contribution: $9,750
  • • Tax savings (25% bracket): $7,500 x 25% = $1,875/year

Frequently Asked Questions

How much should I contribute to my 401(k)?
At minimum, contribute enough to get your full employer match -- it is free money. Ideally, aim for 15% of your gross income across all retirement accounts. If you cannot do 15% now, start with your match and increase by 1% per year.
Should I choose Traditional or Roth 401(k)?
If you expect to be in a higher tax bracket in retirement, choose Roth (pay taxes now at a lower rate). If you expect a lower bracket in retirement, choose Traditional (defer taxes). Many advisors recommend a mix of both for tax diversification.
What happens to my 401(k) if I change jobs?
You have several options: leave it with your former employer, roll it over to your new employer's plan, roll it into an IRA, or cash it out (not recommended due to taxes and penalties). A rollover to an IRA often provides the most investment flexibility.
What is an employer match?
An employer match is when your employer contributes additional money to your 401(k) based on your own contributions. A common structure is 50% match up to 6% of salary, meaning if you contribute 6% ($4,500 on a $75,000 salary), your employer adds $2,250.
When can I withdraw from my 401(k)?
You can withdraw penalty-free after age 59 1/2. Early withdrawals generally incur a 10% penalty plus income taxes. Some exceptions exist for hardship withdrawals, disability, and the Rule of 55 (separating from service at 55+).