401(k) Calculator
Calculate your retirement savings with employer matching contributions.
Your Information
Income & Contributions
Annual Salary (Gross)
$
Your Contribution Rate
%
Percentage of salary you contribute to 401(k)
Employer Match
Employer Match Rate
%
Employer matches this % of your contribution
Match Limit (% of Salary)
%
Employer matches up to this % of your salary
Growth Assumptions
Current 401(k) Balance
$
Current Age
yrs
Retirement Age
yrs
Expected Return
%
Salary Growth
%
Retirement Projection
$0
Projected Balance at Retirement
At age 65 in 35 years
You’re Maximizing Your Match!
You’re contributing enough to get the full employer match.
Total Contributions
$0
Employer Match Total
$0
Investment Growth
$0
Free Money from Match
0%
Your Annual Contributions (Year 1)
You Contribute
$0
$0/month
Employer Match
$0
$0/month
Total Annual
$0
$0/month
401(k) Balance Growth Over Time
Age 30
Age 47
Age 65
Your Contributions
Employer Match
Investment Growth
Final Balance Breakdown
$0
Total
You: $0
Employer: $0
Growth: $0
Understanding Employer Match
An employer match is essentially “free money” added to your retirement savings. Common match formulas include:
100% match up to 3% of salary
50% match up to 6% of salary
Dollar-for-dollar up to 4% of salary
50% match up to 6% of salary
Dollar-for-dollar up to 4% of salary
Example: With a $75,000 salary and “50% match up to 6%”, if you contribute 6% ($4,500), your employer adds 50% of that ($2,250) – that’s $2,250 in free money!
2024-2025 Contribution Limits
Limit Type
2024
2025
Employee Contribution
$23,000
$23,500
Catch-up (50+)
$7,500
$7,500
Total (incl. employer)
$69,000
$70,000
Catch-up contributions are available for those aged 50 and older, allowing extra savings as retirement approaches.
Maximize Your 401(k)
- Always get the full match: Not contributing enough to get the full match is leaving free money on the table.
- Increase contributions over time: Bump up your rate by 1% each year or with each raise.
- Choose low-cost index funds: Expense ratios matter significantly over decades.
- Consider Roth 401(k): If available, Roth contributions grow tax-free (you pay taxes now instead of retirement).
- Don’t cash out when changing jobs: Roll over to new employer’s plan or an IRA to avoid taxes and penalties.
Traditional vs Roth 401(k)
- Traditional 401(k): Contributions reduce taxable income now; you pay taxes when you withdraw in retirement.
- Roth 401(k): Contributions are after-tax; withdrawals in retirement are tax-free.
- Best for Traditional: If you expect lower tax rates in retirement or need current tax deduction.
- Best for Roth: If you expect higher taxes in retirement or want tax-free income later.
- Hedge your bets: Many people split contributions between both types for tax diversification.
Important Considerations
- Vesting schedules: Employer contributions may vest over 3-6 years. Leaving early could mean forfeiting unvested match.
- Early withdrawal penalties: Withdrawing before 59½ typically incurs 10% penalty plus income taxes.
- Required Minimum Distributions: You must start withdrawing at age 73 (Traditional 401k only).
- Investment options: 401(k) plans have limited fund choices compared to IRAs.
- Fees matter: Check your plan’s expense ratios and administrative fees – they compound over time.