# 401(k) Calculator

Calculate your 401(k) balance at retirement with employer matching and investment growth. Free 401(k) calculator to plan your retirement savings.

## What this calculates

Project your 401(k) retirement savings including employer matching contributions and investment growth. See how much your account could be worth by the time you retire and what monthly income it could provide.

## Inputs

- **Current Age** — min 18, max 75 — Your current age.
- **Retirement Age** — min 30, max 80 — The age you plan to retire.
- **Annual Salary** ($) — min 0 — Your current annual gross salary.
- **Your Contribution** (%) — min 0, max 100 — Percentage of salary you contribute to 401(k).
- **Employer Match** (%) — min 0, max 100 — Percentage of your contribution your employer matches (e.g., 50% = 50 cents per dollar).
- **Employer Match Limit** (%) — min 0, max 100 — Maximum percentage of salary the employer will match.
- **Current 401(k) Balance** ($) — min 0 — Your existing 401(k) account balance.
- **Expected Annual Return** (%) — min 0, max 20 — Expected average annual investment return.

## Outputs

- **Projected 401(k) Balance** — formatted as currency — Estimated 401(k) balance at retirement age.
- **Your Total Contributions** — formatted as currency — Total amount you will have contributed.
- **Employer Total Contributions** — formatted as currency — Total employer matching contributions.
- **Investment Growth** — formatted as currency — Total earnings from investment returns.
- **Estimated Monthly Income (4% Rule)** — formatted as currency — Estimated monthly income using a 4% annual withdrawal rate.

## Details

A 401(k) is an employer-sponsored retirement savings plan that offers significant tax advantages. Traditional 401(k) contributions are made with pre-tax dollars, reducing your current taxable income, while Roth 401(k) contributions are after-tax but grow and are withdrawn tax-free in retirement.

One of the most valuable features of a 401(k) is the employer match. If your employer matches 50% of contributions up to 6% of your salary, and you earn $75,000, contributing at least 6% ($4,500/year) earns you an additional $2,250/year in free money. Not contributing enough to get the full match is essentially leaving money on the table.

For 2024, the employee contribution limit for 401(k) plans is $23,000, with an additional $7,500 catch-up contribution allowed for those age 50 and older. These limits increase periodically to keep pace with inflation. The total contribution limit (employee + employer) is $69,000 in 2024.

## Frequently Asked Questions

**Q: How much should I contribute to my 401(k)?**

A: At minimum, contribute enough to get your full employer match, as this is free money. Financial advisors generally recommend saving 10-15% of your gross income for retirement, including the employer match. If you start saving later in life, you may need to contribute a higher percentage to catch up. Increase your contribution by 1% each year until you reach your target.

**Q: What is an employer match and how does it work?**

A: An employer match is when your company contributes money to your 401(k) based on your own contributions. A common formula is 50% match on the first 6% of salary contributed. If you earn $75,000 and contribute 6% ($4,500), your employer adds 50% of that ($2,250). If you contribute less than 6%, you do not receive the full match. Some employers offer dollar-for-dollar matches or different percentages.

**Q: Should I choose Traditional or Roth 401(k)?**

A: Traditional 401(k) contributions reduce your current tax bill and grow tax-deferred, but withdrawals in retirement are taxed as income. Roth 401(k) contributions are made after-tax, but qualified withdrawals in retirement are completely tax-free. If you expect to be in a higher tax bracket in retirement, Roth is often better. If you expect a lower bracket, Traditional may save more. Many people split contributions between both for tax diversification.

**Q: When can I withdraw from my 401(k) without penalty?**

A: You can make penalty-free withdrawals from a traditional 401(k) starting at age 59 and a half. Withdrawals before that age are generally subject to a 10% early withdrawal penalty in addition to regular income taxes. Exceptions include disability, certain medical expenses, and the Rule of 55 (if you leave your employer at age 55 or later). Required minimum distributions (RMDs) begin at age 73.

**Q: What happens to my 401(k) if I change jobs?**

A: When you leave an employer, you have several options for your 401(k): leave it with the former employer (if allowed), roll it over to your new employer's 401(k), roll it into an IRA, or cash it out (not recommended due to taxes and penalties). Rolling into an IRA often provides the most investment options. Make sure to do a direct rollover to avoid the mandatory 20% tax withholding on indirect rollovers.

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Source: https://vastcalc.com/calculators/finance/401k
Category: Finance
Last updated: 2026-04-21