Calculate your 401(k) retirement savings with employer match, tax benefits, and projected growth. Free professional retirement planning tool.
Our advanced 401(k) calculator helps you project your retirement savings growth, accounting for employer matching contributions, compound interest, and salary increases. Understanding your 401(k) potential is crucial for effective retirement planning.
A 401(k) is an employer-sponsored retirement savings plan that allows employees to contribute a portion of their salary on a pre-tax basis. Many employers offer matching contributions, which is essentially free money added to your retirement savings. Contributions grow tax-deferred until withdrawal during retirement.
Always contribute enough to get the full employer match - this is essentially a 100% return on your investment immediately.
Use auto-increase features to gradually raise your contribution percentage each year, especially after salary increases.
If you expect to be in a higher tax bracket during retirement, Roth 401(k) contributions may provide better tax benefits.
Review and rebalance your 401(k) investment allocations annually to maintain your target risk level.
For 2024, the IRS has set the following contribution limits:
Traditional 401(k): Contributions are made pre-tax, reducing your current taxable income. Withdrawals during retirement are taxed as ordinary income.
Roth 401(k): Contributions are made after-tax, providing no current tax benefit. Qualified withdrawals during retirement are completely tax-free, including all investment growth.
Our calculator uses standard financial formulas for compound interest and retirement projections. While it provides accurate estimates based on your inputs, actual returns may vary due to market conditions, investment choices, and changes in contribution rates.
The most common employer match is 50% of employee contributions up to 6% of salary, but this varies by company. Some employers offer dollar-for-dollar matching, while others may have different tiered structures.
Maximizing your 401(k) contributions is generally recommended if you can afford it, especially if you're behind on retirement savings or want to reduce your current taxable income. However, you should also consider other financial priorities like emergency funds, debt repayment, and other investment opportunities.
Our calculator shows future dollar amounts without adjusting for inflation. To understand the purchasing power of your retirement savings, you should consider that $1,000,000 in 30 years will have significantly less buying power than $1,000,000 today due to inflation.
You can generally withdraw from your 401(k) without penalty after age 59½. Early withdrawals (before age 59½) typically incur a 10% penalty plus ordinary income tax, with some exceptions for specific circumstances like disability, medical expenses, or first-time home purchases.
Note: This calculator provides estimates only and should not be considered financial advice. Actual retirement outcomes depend on market performance, contribution consistency, and individual circumstances. Consult with a qualified financial advisor for personalized retirement planning.