401k Calculator
Plan your retirement with employer matching and compound growth analysis
401k Retirement Calculator
Accumulation Phase
Your current annual salary
Your existing 401k balance
Percentage of salary contributed
Percentage of your contribution matched
Maximum employer match as % of salary
Average annual investment return
Withdrawal Phase
Expected duration of retirement
Tax rate on withdrawals
How often you plan to withdraw funds
401k Results
Current Monthly Contributions
Retirement Withdrawals
Contribution Breakdown
401k Strategy Recommendations
2024 Contribution Limits
Employee Contributions
Under 50: $23,000
50 and over: $30,500
Catch-up: $7,500
Total Contributions
Under 50: $69,000
50 and over: $76,500
(Employee + Employer)
401k Key Benefits
Tax-deferred growth - no taxes until withdrawal
Employer matching - free money from your employer
Higher contribution limits than IRAs
Automatic payroll deductions
Potential for catch-up contributions after 50
Loan options (subject to plan rules)
Investment Strategy Tips
Start early - compound growth is powerful
Contribute at least enough to get full employer match
Increase contributions with salary raises
Diversify investments across asset classes
Review and rebalance portfolio annually
Consider target-date funds for simplicity
401k Balance Projection
| Year | Total Balance | Employee Contributions | Employer Contributions | Investment Returns |
|---|---|---|---|---|
| 2026 | $18,725 | $5,000 | $2,500 | $1,225 |
| 2027 | $28,301.5 | $10,150 | $5,075 | $3,076.5 |
| 2028 | $38,796.328 | $15,454.5 | $7,727.25 | $5,614.577 |
| 2029 | $50,281.205 | $20,918.135 | $10,459.068 | $8,904.002 |
| 2030 | $62,833.097 | $26,545.679 | $13,272.84 | $13,014.579 |
| 2031 | $76,534.588 | $32,342.049 | $16,171.025 | $18,021.514 |
| 2032 | $91,474.279 | $38,312.311 | $19,156.155 | $24,005.813 |
| 2033 | $107,747.217 | $44,461.68 | $22,230.84 | $31,054.696 |
| 2034 | $125,455.352 | $50,795.531 | $25,397.765 | $39,262.056 |
| 2035 | $144,708.031 | $57,319.397 | $28,659.698 | $48,728.936 |
| 2036 | $165,622.522 | $64,038.978 | $32,019.489 | $59,564.054 |
| 2037 | $188,324.576 | $70,960.148 | $35,480.074 | $71,884.354 |
| 2038 | $212,949.027 | $78,088.952 | $39,044.476 | $85,815.599 |
| 2039 | $239,640.442 | $85,431.621 | $42,715.81 | $101,493.011 |
| 2040 | $268,553.805 | $92,994.569 | $46,497.285 | $119,061.951 |
Showing first 15 years. Full projection continues until retirement.
Understanding Your 401k Plan
What is a 401k?
A 401k is an employer-sponsored retirement savings account that allows you to contribute pre-tax dollars from your paycheck. Your contributions grow tax-deferred until withdrawal, typically at retirement.
Employer Matching
Many employers offer matching contributions, essentially giving you free money for participating in the plan. Common matches include 50% or 100% of your contribution up to a certain percentage of your salary.
Tax Benefits
Contributions to a traditional 401k are made with pre-tax dollars, reducing your current taxable income. You'll pay taxes when you withdraw the money in retirement, ideally when you're in a lower tax bracket.
Withdrawal Rules
- • Penalty-free withdrawals start at age 59½
- • Required minimum distributions begin at age 73
- • Early withdrawals incur 10% penalty plus taxes
- • Some hardship withdrawals may be allowed
Compound Growth Formula
FV = PV × (1 + r)^n + PMT × [((1 + r)^n - 1) / r]
- FV: Future value (balance at retirement)
- PV: Present value (current balance)
- r: Annual interest rate (expected return)
- n: Number of years until retirement
- PMT: Annual payment (total contributions)
Pro Tip: The power of compound growth means that starting early, even with smaller contributions, can result in larger retirement balances than starting later with larger contributions.