💼 Retirement Planning
401(k) Calculator
Project your 401(k) balance at retirement including employer match, salary growth, and compounding. See the real value of "free money" from employer contributions.
2026 IRS 401(k) Limits
Employee Contribution$23,500
Catch-Up (age 50+)+$7,500
Total (incl. employer)$70,000
RMD Age73
Your Information
Age, salary & current balance
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Employer Match (Free Money!)
Don't leave this on the table
💰 Enter match details to see your free money value
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Example: 50% match up to 6% means employer adds 3% if you contribute at least 6%.
Investment Projections
Returns and inflation assumptions
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PROJECTED 401(K) BALANCE AT RETIREMENT
$1,284,000
At age 65 · Inflation-adjusted: $832,000
$280K
Your Contributions
$140K
Employer Match
$864K
Investment Growth
$5,140
Monthly Income (4%)
🎁 Employer Match Value — Your "Free Money"
$2,250
Annual Match (yr 1)
$140K
Total Match (lifetime)
$380K
Match Grown at 7%
💡 Always contribute enough to get the full employer match — it's a 50–100% instant return!
📈 401(k) Growth: Your Money vs Employer Match vs Growth
📊 Contribution Rate Scenarios
| Contribution % | Your Annual | Employer Match | Balance at Ret. | Monthly Income |
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📋 Year-by-Year Growth Schedule
| Age | Salary | Your Contrib. | Employer Match | Growth | Year-End Balance |
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How a 401(k) Works and Why It Matters
A 401(k) is the most powerful tax-advantaged retirement savings tool available to most American employees. Our 401(k) calculator shows your projected balance at retirement including the full employer match benefit — often called "free money" because it's compensation on top of your salary. For complete retirement planning, pair this with our retirement calculator, compound interest calculator, and income tax calculator.
💰 The Power of Employer Match
Employer match is an instant 50–100% return on your contribution — impossible to beat:
- 50% match up to 6%: You contribute 6%, employer adds 3% = 50% instant return
- 100% match up to 4%: You contribute 4%, employer adds 4% = 100% instant return
- Always contribute at least enough to get the full employer match
- Missing the match = leaving part of your compensation package unclaimed
📊 Traditional vs Roth 401(k)
- Traditional 401(k): Pre-tax contributions reduce income now; taxed on withdrawal
- Roth 401(k): After-tax contributions; tax-free withdrawals in retirement
- Choose Roth if: You expect higher taxes in retirement than now
- Choose Traditional if: You're in a high tax bracket now and expect lower in retirement
- Many experts recommend splitting between both for tax diversification
📐 Key 401(k) Rules & Limits (2026)
- Employee limit: $23,500/year ($1,958/month)
- Catch-up (50+): Additional $7,500 = $31,000 total
- Total w/ employer: $70,000 max combined
- Early withdrawal: 10% penalty + income tax before age 59½
- RMD age: Required Minimum Distributions begin at 73
- Vesting: Employer match may require 2–6 years to fully vest
⚡ Early Start vs Late Start
At $500/month at 7% annual return:
- Starting at 25: $1,312,000 by age 65
- Starting at 35: $609,000 by age 65
- Starting at 45: $252,000 by age 65
10 years earlier = 2× more money. The earlier you start, the more compounding does the work — not you.
Frequently Asked Questions
At minimum, contribute enough to capture the full employer match — this is essentially an instant 50–100% return. Beyond that, financial planners generally recommend saving 10–15% of gross income for retirement (including employer match). If you started late or want an aggressive retirement, aim for 15–20%. Use our 401(k) calculator scenarios to see exactly how each contribution rate affects your retirement balance. The specific amount depends on your age, target retirement date, and current savings.
You have four options: (1) Leave it in your old employer's plan if allowed; (2) Roll it over to your new employer's 401(k); (3) Roll it over to an IRA — most popular option, gives you more investment choices; (4) Cash it out — strongly discouraged as this triggers income tax plus 10% early withdrawal penalty if under 59½, and eliminates future tax-deferred growth. The rollover to IRA is usually the best choice for control and investment options.
Yes, but it's costly. Withdrawals before age 59½ typically incur a 10% early withdrawal penalty plus ordinary income taxes. On a $10,000 withdrawal in the 22% tax bracket, you'd net about $6,800 after the 10% penalty and taxes — and lose the future compounding on that amount. Hardship exceptions exist (medical expenses, disability, etc.) that may waive the penalty but not income taxes. 401(k) loans (up to $50,000 or 50% of balance) are an alternative that avoids taxes but must be repaid.
Vesting determines when you own employer-contributed funds. Your own contributions are always 100% vested immediately. Employer match may have a vesting schedule: cliff vesting (e.g., 100% after 3 years) or graded vesting (e.g., 25% per year over 4 years). If you leave before fully vesting, you forfeit the unvested employer contributions. Always check your plan's vesting schedule before changing jobs — leaving just months before full vesting can cost thousands of dollars.
For most people, a low-cost target-date fund matching your expected retirement year (e.g., "Target Date 2055 Fund") is the simplest and most effective choice. These automatically rebalance from growth-oriented to conservative as you approach retirement. If you prefer more control, a diversified mix of low-cost index funds (total stock market + international + bonds) generally outperforms actively managed funds due to lower expense ratios. Always compare expense ratios — even 0.5% difference in annual fees compounds to tens of thousands of dollars lost over a career.