Free 401(k) Calculator
Calculate your 401(k) retirement savings with employer matching, tax benefits, and compound growth. Compare Traditional vs Roth 401(k) to maximize your retirement nest egg.
401(k) Contribution Calculator
Optimize your retirement savings and maximize employer match
Your Information
Contribution
$10,000 per year
Employer Match
Retirement Projection
Traditional vs Roth Comparison
Key Information
- •Always get the match: Employer match is free money with instant 100% return.
- •2024 Limits: $23,000 employee contribution ($30,500 if 50+), $69,000 total.
- •Traditional: Tax deduction now, pay taxes in retirement.
- •Roth: No tax deduction now, tax-free withdrawals in retirement.
📚 Learn More About 401(k) Plans
💰 Employer Match = Free Money
If your employer offers a 401(k) match, always contribute enough to get the full match. It's an instant 50-100% return on your money!
Example: 50% match up to 6% means if you contribute 6% of $60,000 salary ($3,600), your employer adds $1,800. That's free money!
🏦 Traditional vs Roth 401(k)
Contributions are pre-tax (lower taxable income now), but withdrawals are taxed in retirement.
Contributions are after-tax (no tax break now), but withdrawals are 100% tax-free in retirement.
📊 Contribution Limits
- Under 50: $23,000 annual limit
- Age 50+: $30,500 (includes $7,500 catch-up)
- Total limit: $69,000 (employee + employer contributions)
Pro tip: Max out your 401(k) if possible for maximum tax benefits and retirement savings.
📈 Power of Compound Interest
Starting early makes a HUGE difference. A 25-year-old contributing $500/month at 8% return will have $1.7M at 65. Starting at 35? Only $745K.
Key takeaway: Time in the market beats timing the market. Start now!
⚠️ Common Mistakes
- Not contributing enough to get full employer match
- Cashing out when changing jobs (use rollover!)
- Being too conservative with investments when young
- Forgetting to increase contributions with raises
- Taking early withdrawals (10% penalty + taxes)
✅ Best Practices
- Contribute at least enough to get full employer match
- Aim to save 15% of gross income for retirement
- Increase contributions by 1% annually
- Diversify investments based on age
- Review and rebalance portfolio annually
- Never borrow from your 401(k)
How to Use This 401(k) Calculator
Enter Your Info
Input your age, salary, current 401(k) balance, and contribution percentage.
Add Employer Match
Enter your employer's match percentage and vesting schedule to see the free money you'll receive.
Compare & Optimize
Review projections, compare Traditional vs Roth, and adjust contributions to meet your retirement goals.
Frequently Asked Questions
How much should I contribute to my 401(k)?
At minimum, contribute enough to get your full employer match—it's free money! Ideally, aim to save 15% of your gross income for retirement. If you can't do 15% now, start with the match and increase by 1% each year. For, the contribution limit is $23,000 (or $30,500 if you're 50+).
Should I choose Traditional or Roth 401(k)?
Choose Traditional if you expect to be in a lower tax bracket in retirement (tax break now). Choose Roth if you expect higher taxes later or want tax-free withdrawals (especially if you're young and in a low bracket now). Many people do a mix of both for tax diversification.
What is employer matching and how does it work?
Employer matching means your company contributes money to your 401(k) based on your contributions. Common formulas: "50% match up to 6%" means if you contribute 6% of salary, they add 3%. "Dollar-for-dollar up to 4%" means they match 100% of your first 4%. Always get the full match!
Can I withdraw from my 401(k) before retirement?
You can, but you'll pay a 10% early withdrawal penalty plus income taxes if you're under 59½. There are exceptions for hardships, but it's generally a bad idea. If you leave your job, roll over to an IRA instead of cashing out. Your future self will thank you!