401(k) Calculator

Plan your retirement with accurate 401(k) growth projections. Calculate the impact of employer matching, contribution limits, and investment returns on your retirement savings.

401(k) Details

$
$
%
%
%
%
%
%

Retirement Projection

Enter your 401(k) details to calculate retirement projections and see growth estimates.

How to Use the 401(k) Calculator

  1. Enter Your Ages: Input your current age and planned retirement age
  2. Add Salary Information: Enter current salary and expected annual increases
  3. Set Current Balance: Include any existing 401(k) savings you already have
  4. Configure Contributions: Set your contribution percentage and employer match details
  5. Set Investment Returns: Enter expected annual return rate and inflation rate
  6. Review Projections: See total balance, monthly income, and replacement ratio

401(k) Plan Basics

Key Benefits

Pre-tax contributions reduce current taxable income
Tax-deferred growth - no taxes on gains until withdrawal
Employer matching provides immediate 100% return
High contribution limits compared to IRAs
Automatic payroll deductions make saving easy
Catch-up contributions available for ages 50+

2024 Contribution Limits

Employee Contributions

• Under 50: $23,000 annual limit
• Age 50+: $30,500 (includes $7,500 catch-up)

Total Contributions

• Under 50: $69,000 (employee + employer)
• Age 50+: $76,500 (includes catch-up)

Highly Compensated

• $155,000+ income may have additional limits
• Subject to nondiscrimination testing

401(k) Optimization Strategies

Maximize Your Returns

Always contribute enough to get full employer match
Increase contributions with salary raises
Use catch-up contributions if you're 50 or older
Review and rebalance investments annually
Consider Roth 401(k) if available and appropriate

Common Mistakes to Avoid

Not contributing enough to get full employer match
Cashing out when changing jobs
Taking loans against your 401(k) balance
Investing too conservatively when young
Ignoring high investment fees in plan options

Frequently Asked Questions

What percentage of my salary should I contribute to my 401(k)?

Financial experts typically recommend contributing 10-15% of your salary, including any employer match. At minimum, contribute enough to get your full employer match - it's free money with an immediate 100% return.

Can I contribute to both a 401(k) and an IRA?

Yes, you can contribute to both. For 2024, you can contribute up to $23,000 to a 401(k) and $7,000 to an IRA ($8,000 if 50+). However, IRA deductibility may be limited if you have a workplace plan and high income.

What happens to my 401(k) when I change jobs?

You have several options: leave it with your former employer, roll it over to your new employer's plan, roll it over to an IRA, or cash it out (not recommended due to taxes and penalties).

When can I withdraw money from my 401(k) without penalty?

Generally, you can withdraw without the 10% penalty starting at age 59½. Required minimum distributions (RMDs) begin at age 73. Earlier withdrawals may be subject to penalties, though some exceptions exist for hardships.

Should I choose traditional or Roth 401(k) contributions?

Traditional contributions reduce current taxes but are taxed in retirement. Roth contributions are made with after-tax dollars but grow tax-free. Choose Roth if you expect to be in a higher tax bracket in retirement, or traditional if you expect lower taxes.