401(k) Retirement Calculator
See how your 401(k) can grow with employer matching and compound interest over time.
Your Information
Contribution Settings
= $7,500.00/year
Employer contributes up to $2,250.00/year
Growth Assumptions
Understanding Your 401(k)
Employer Match: Free Money
If your employer offers a 401(k) match, always contribute enough to get the full match. A 50% match on 6% of your salary is an immediate 50% return on that money. Not taking the full match is leaving money on the table.
Tax Advantages
Traditional 401(k) contributions are made pre-tax, reducing your taxable income today. Your money grows tax-deferred until retirement. If you expect to be in a lower tax bracket in retirement, traditional 401(k) can save you significant money.
The Power of Compound Growth
Starting early is crucial. A 25-year-old who invests $5,000 per year until age 65 at 7% annual returns will have about $1.1 million. A 35-year-old making the same contributions will have about $505,000 - less than half. Time in the market matters more than timing the market.
2024 Contribution Limits
The IRS sets annual contribution limits. For 2024, you can contribute up to $23,000 to your 401(k). If you're 50 or older, you can make additional "catch-up" contributions of $7,500, for a total of $30,500. Employer matches don't count toward these limits.
Learn More: IRS 401(k) Contribution Limits
This calculator provides estimates for educational purposes only. Consider consulting a financial advisor for personalized retirement planning.