401(k) Calculator
Retirement Calculator
A 401(k) is an employer-sponsored retirement savings plan that lets you invest pre-tax dollars, reducing your taxable income today while growing tax-deferred until retirement. Our calculator factors in employer match, catch-up contributions (age 50+), and projected growth to show your real retirement balance.
What This Calculator Does
- Calculate total balance with employer match included
- Model catch-up contributions for savers age 50 and older
- See state-by-state tax impact on your withdrawals
- Compare traditional 401(k) vs Roth 401(k) outcomes
- Project balances at multiple retirement ages
Frequently Asked Questions
What is the 401(k) contribution limit?
For 2024, the IRS allows employees to contribute up to $23,000 to a 401(k). Workers age 50 and older can add an extra $7,500 catch-up contribution, for a total of $30,500.
How does employer matching work?
Employers typically match 50%–100% of your contributions up to a set percentage of your salary—for example, 100% match on the first 3% of pay. Always contribute at least enough to capture the full employer match; it is free money.
What is the difference between traditional and Roth 401(k)?
Traditional 401(k) contributions are pre-tax, lowering your taxable income now but taxed on withdrawal. Roth 401(k) contributions are after-tax, but qualified withdrawals in retirement are completely tax-free.
When can I withdraw from my 401(k) without penalty?
You can begin penalty-free withdrawals at age 59½. Withdrawals before that age typically incur a 10% early withdrawal penalty plus ordinary income taxes, with some exceptions for hardship or separation from service after age 55.
What is a required minimum distribution (RMD)?
Under the SECURE 2.0 Act, RMDs from traditional 401(k) accounts must begin at age 73. The annual RMD amount is calculated by dividing your account balance by an IRS life-expectancy factor.
Should I prioritize my 401(k) over paying off debt?
Financial experts generally recommend contributing enough to your 401(k) to capture the full employer match first (since it is an immediate 50–100% return), then focus on high-interest debt, then maximize retirement contributions.