401(k) Calculator - Maximize Your Retirement Savings
Calculate the future growth of your 401(k) with employer matching and tax benefits. See how your contributions today can impact your retirement balance.
Contribution Details
Contributions
Total Contributions
Contribution Rate
Tax Benefits
| Age | Balance | Your Contributions | Employer Match | Investment Growth |
|---|---|---|---|---|
| 30 | $100,000 | $100,000 | $0 | $0 |
| 35 | $229,300 | $150,000 | $15,000 | $64,300 |
| 40 | $419,284 | $200,000 | $30,000 | $189,284 |
| 45 | $698,433 | $250,000 | $45,000 | $403,433 |
| 50 | $1,108,594 | $300,000 | $60,000 | $748,594 |
| 55 | $1,711,255 | $350,000 | $75,000 | $1,286,255 |
| 60 | $2,596,762 | $400,000 | $90,000 | $2,106,762 |
| 65 | $3,897,862 | $450,000 | $105,000 | $3,342,862 |
- • You could contribute $14,500 more annually to maximize your 401(k) contribution limit.
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Why Your 401(k) Matters
A 401(k) is your most powerful wealth-building tool because of two factors: tax-deferred growth and employer matching. Every dollar your employer matches is a 50-100% instant return—better than any investment you'll find in the market. Combined with decades of compound growth on pre-tax dollars, a well-managed 401(k) can turn consistent contributions into a seven-figure retirement balance.
💰 Employee Contributions
Pre-tax contributions reduce your taxable income dollar-for-dollar while building retirement wealth.
🏢 Employer Match
Free money from your employer—typically 50-100% of contributions up to 3-6% of salary.
📈 Tax-Deferred Growth
No annual taxes on dividends, interest, or capital gains—your full balance compounds.
🎯 Retirement Income
Replaces 70-80% of pre-retirement income when combined with Social Security.
2026 Contribution Limits
The IRS increased 401(k) contribution limits for 2026 to help workers keep pace with inflation. The employee deferral limit rises to $24,500 (up from $23,500). Workers aged 50+ can add $8,000 in catch-up contributions. The enhanced "super catch-up" for ages 60-63 remains at $11,250, allowing those in their peak earning years to contribute up to $35,750 annually.
⚠️ 2026 Roth Catch-Up Rule
Starting in 2026, if your prior-year wages exceeded $150,000, all catch-up contributions must be made as Roth (after-tax). This applies to the standard $8,000 catch-up and the $11,250 super catch-up. Workers earning under $150,000 can still choose traditional or Roth for catch-up contributions.
👤 Employee (Under 50)
Maximum annual employee deferral
🎯 Catch-Up (50-59, 64+)
Includes $8,000 catch-up contribution
🚀 Super Catch-Up (60-63)
Includes $11,250 enhanced catch-up
🏢 Total Limit
Combined employee + employer (under 50)
Employer Matching Strategies
Employer matching is the highest-return investment available to you. A 100% match on 3% of salary means every $1 you contribute becomes $2 instantly—a guaranteed 100% return before any market gains. Your first contribution priority should always be reaching the full employer match, even if you have high-interest debt (except credit cards above 20% APR).
🎯 Dollar-for-Dollar
- • 100% match up to limit
- • Most generous matching
- • Example: $1 for every $1
- • Typically 3-6% of salary
💰 Partial Match
- • 50% match most common
- • $0.50 for every $1
- • Up to 6% of salary
- • Still a 50% instant return
📈 Tiered Match
- • Different rates by level
- • 100% up to 3%, 50% next 2%
- • Requires contribution planning
- • Maximize each tier
Traditional vs. Roth 401(k)
The traditional vs. Roth decision hinges on one question: Will your tax rate be higher now or in retirement? If you're in the 22-24% bracket now and expect to be in the 12-22% bracket in retirement, traditional wins. If you're early-career in a low bracket or expect tax rates to rise, Roth wins. Many advisors recommend splitting contributions 50/50 to hedge your tax exposure. Compare scenarios with our Tax Rate Calculator.
🏛️ Traditional 401(k)
Best for: High earners expecting lower retirement taxes
🌟 Roth 401(k)
Best for: Early-career workers or those expecting higher future taxes
Age-Based Contribution Strategy
A 25-year-old contributing 10% will likely accumulate more than a 45-year-old contributing 20%—that's the power of compound growth. The numbers below assume you're starting from scratch; if you're behind, increase by 5% until you catch up. Learn more with our Compound Interest Calculator.
📊 Target Contribution Rates (Including Employer Match)
20s — Start here, increase with raises
30s — Standard recommendation
40s — Accelerate if behind
50s+ — Max out with catch-up
Vesting Schedules
Your contributions are always 100% yours. Employer contributions may vest over time—check your plan before accepting a new job offer. Leaving one month before a cliff-vesting date could cost you thousands.
⚡ Immediate
- Vesting: 100% immediately
- Benefit: Full portability
- Risk: None
- Best for: Job hoppers
🎯 Cliff (3 Years)
- Vesting: 0% → 100% at 3 years
- Benefit: Simple to track
- Risk: Lose all if you leave early
- Best for: Long-term employees
📈 Graded (6 Years)
- Vesting: 20% per year after year 2
- Benefit: Partial credit for tenure
- Risk: Forfeiting unvested portion
- Best for: Medium-term stays
Investment Allocation by Age
A common rule: subtract your age from 110 to get your stock allocation. A 30-year-old would hold 80% stocks, 20% bonds. Target-date funds automate this shift. If you prefer DIY, stick to low-cost index funds (S&P 500, total market, international). Use our Asset Allocation Calculator to optimize your mix.
🌱 20s–30s
- • 90% stocks
- • 10% bonds
- • High growth focus
- • 30+ year horizon
💼 40s
- • 80% stocks
- • 20% bonds
- • Balanced growth
- • 20+ year horizon
🎯 50s
- • 70% stocks
- • 30% bonds
- • Risk reduction
- • 10-15 year horizon
🏖️ 60s+
- • 50-60% stocks
- • 40-50% bonds
- • Income + preservation
- • Near retirement
Common 401(k) Mistakes
These errors cost the average worker $100,000+ over a career. Avoid them.
❌ Contribution Mistakes
⚠️ Investment Mistakes
Withdrawal Rules
The IRS wants 401(k) money used for retirement—early access triggers penalties. Know these thresholds to avoid surprises.
📋 Key Withdrawal Ages
Penalty-free withdrawals begin (still owe income tax on traditional)
Required minimum distributions (RMDs) start—must begin withdrawing
Early withdrawal penalty before 59½ (plus income tax)
Maximizing Your 401(k)
Follow these four rules in order. Each builds on the last.
1️⃣ Get the Full Match
- • Contribute at least to match %
- • 50-100% instant return
- • Priority over debt payoff
- • Check match formula
2️⃣ Increase With Raises
- • Auto-escalate 1% annually
- • Put 50% of raises to 401(k)
- • Target 15% total rate
- • Painless increase method
3️⃣ Minimize Fees
- • Index funds under 0.2%
- • Avoid funds over 0.5%
- • Check administrative fees
- • 1% fee = 25% less at retirement
4️⃣ Stay the Course
- • Don't panic sell in downturns
- • Rebalance annually
- • Avoid 401(k) loans
- • Never cash out early
401(k) Success Formula
Contributing $500/month from age 25 to 65 at 7% average returns = $1.2 million. Starting at 35 with the same contributions = $567,000. The math is clear: start now, stay consistent, keep fees low.
🏆 The Four Pillars
Key Takeaways for 401(k) Planning
Your 401(k) is built on two advantages: tax-deferred compounding and employer matching. Use our calculator to model scenarios—small changes in contribution rates compound dramatically over decades.
For 2026: contribute up to $24,500 (under 50), $32,500 (50-59 or 64+), or $35,750 (60-63). Total limit including employer contributions is $72,000. High earners (>$150k prior-year wages) must make catch-up contributions as Roth. Use our Retirement Calculator to check if you're on track.
Asset allocation matters: 90/10 stocks/bonds in your 20s, shifting to 60/40 by retirement. Use target-date funds or low-cost index funds (under 0.2% expense ratio). A 1% fee difference costs 20-30% of your final balance. Our Asset Allocation Calculator can help.
Traditional vs. Roth depends on tax brackets. If you're in a low bracket now, Roth wins. If you're in a high bracket and expect lower retirement income, traditional wins. Consider splitting 50/50 to hedge. Compare with our Roth IRA Calculator and Tax Rate Calculator.
Frequently Asked Questions
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