401k Calculator
Estimate your retirement savings with employer matching. See projected growth and monthly retirement income.
Results
Balance at Retirement
$0
at age 65
0%
Growth
Your Contributions
Employer Match
Investment Growth
Your Contributions
$0
Employer Match
$0
Investment Growth
$0
Monthly Income (4%)
$0
401k Growth Over Time
Understanding Your 401k
2024 Contribution Limits
$23,000
Standard employee contribution limit. If you're 50 or older, you can contribute up to $30,500 with the $7,500 catch-up contribution.
Employer Match = Free Money
Always contribute at least enough to get your full employer match. A typical 50% match on 6% of salary means 3% extra added to your retirement - that's an instant 50% return on that portion of your investment.
Tax Advantages
Traditional 401k contributions are pre-tax, reducing your taxable income now. Your investments grow tax-deferred until withdrawal. At $75k salary with 10% contribution, you could save over $1,650/year in taxes (22% bracket).
Frequently Asked Questions
For 2024, the employee contribution limit is $23,000. If you're age 50 or older, you can make additional catch-up contributions of $7,500, bringing your total to $30,500. These limits apply only to employee contributions - employer matching contributions are additional and don't count toward these limits.
Employer matching is when your company contributes money to your 401k based on your contributions. A common match is 50% of your contribution up to 6% of salary. For example, if you earn $100,000 and contribute 6% ($6,000), your employer adds 50% of that ($3,000). This is essentially free money - always contribute enough to get the full match.
The 4% rule suggests withdrawing 4% of your retirement savings in the first year of retirement, then adjusting for inflation each year after. This strategy is designed to make your savings last approximately 30 years. For example, with $1 million saved, you'd withdraw $40,000 in year one. However, this is a guideline - actual withdrawal rates depend on your specific situation.
Traditional 401k contributions are pre-tax, reducing your current taxable income, but withdrawals are taxed in retirement. Roth 401k contributions are after-tax, but qualified withdrawals are tax-free. Choose traditional if you expect lower tax rates in retirement, Roth if you expect higher rates. Many advisors suggest contributing to both for tax diversification.