401(k) Calculator
Use this calculator to estimate how your 401(k) retirement savings might grow over time, and see how employer matching contributions can significantly boost your retirement nest egg.
401(k) Calculator
Estimate how your 401(k) will grow over time with employer matching contributions.
401(k) Calculator
Your Information
Financial Information
Employer Match
Investment Assumptions
401(k) Projection Results
About 401(k) Plans
A 401(k) is a tax-advantaged retirement account sponsored by employers. Contributions are typically made with pre-tax dollars, reducing your current taxable income. Many employers offer matching contributions, which is essentially free money for your retirement.
Key considerations for 401(k) planning:
- Contribute at least enough to get your full employer match
- The 2023 contribution limit is $22,500 (plus $7,500 catch-up for those 50+)
- Consider your investment allocation based on your age and risk tolerance
- Be aware of vesting schedules for employer contributions
- Remember that early withdrawals (before age 59½) typically incur penalties
This calculator provides estimates based on your inputs. Actual results will vary based on market performance, changes in your salary, contribution rate, and other factors.
How to Use This Calculator
This calculator helps you make informed financial decisions by providing accurate estimates based on the information you provide. Follow these steps:
Enter Your Details
Fill in all required fields with your financial information.
Adjust Parameters
Use sliders and toggles to customize scenarios and assumptions.
View Results
Get instant calculations that update as you change inputs.
Compare Options
Try different scenarios to find the best financial solution.
Understanding Your 401(k)
A 401(k) is a tax-advantaged retirement account sponsored by employers that allows employees to save and invest a portion of their paycheck before taxes are taken out.
Benefits of a 401(k)
- Tax Advantages: Contributions are made pre-tax, reducing your current taxable income.
- Employer Matching: Many employers match a percentage of your contributions, which is essentially free money.
- Automatic Contributions: Money is deducted directly from your paycheck, making saving automatic.
- High Contribution Limits: 401(k) plans have higher contribution limits than IRAs.
- Investment Options: Most plans offer a variety of investment options including mutual funds and target-date funds.
Maximizing Your 401(k)
To make the most of your 401(k), consider these strategies:
- At minimum, contribute enough to get your full employer match.
- Increase your contribution percentage whenever you receive a raise.
- If possible, aim to reach the maximum annual contribution limit.
- Consider your risk tolerance and time horizon when selecting investments.
- Regularly review and rebalance your investment allocation.