401(k) Retirement Calculator
Project your 401(k) savings from today through retirement. Includes employer matching, annual salary increases, compound growth, and a Traditional vs Roth comparison.
📈 Your 401(k) Growth Path
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How Your 401(k) Grows Over Time
A 401(k) is one of the most powerful retirement savings tools available to American workers. The combination of tax advantages, employer matching, and compound growth makes it the foundation of most retirement plans.
The Power of Compound Growth
Compound growth is why starting early matters so much. A 25-year-old who saves $5,000/year with a 7% return will have about $1.4 million at age 65. Starting at 35 with the same savings yields only about $540,000 — half the result for the same total contributions, because the money had fewer years to compound. Time in the market beats timing the market.
Employer Match: Free Money
The most common 401(k) match is 50% of your contributions up to 6% of your salary. If you earn $75,000 and contribute 6% ($4,500), your employer adds $2,250 — an instant 50% return on your contribution. Not contributing enough to get the full match is literally leaving free money on the table. The average American leaves about $1,300 per year in unclaimed match money.
Contribution Limits
The maximum 401(k) contribution limit is $23,500 for employees under 50. Those aged 50+ can make an additional catch-up contribution of $7,500, for a total of $31,000. Employer contributions do not count toward this limit. The total combined contribution (employee + employer) limit is $70,000 ($77,500 with catch-up). These limits are adjusted periodically for inflation.
Traditional vs. Roth: Which Is Better?
The choice comes down to your tax rate now vs. in retirement. Traditional wins if you expect to be in a lower tax bracket in retirement (most people's income drops). Roth wins if you expect to be in a higher bracket, or if you want tax-free withdrawals and no RMDs. Many experts recommend having both — contributing to Traditional for the tax break now and Roth for tax diversification in retirement.
Frequently Asked Questions
The minimum target: contribute enough to get the full employer match. The ideal target: 10–15% of your income including employer contributions. If you can't reach that now, start lower and use auto-escalation — increase your contribution by 1% each year. A good rule: save half your age as a percentage. At age 30, aim to save 15%.
You have several options: (1) Leave it in your former employer's plan (if balance > $5,000), (2) Roll it over to your new employer's 401(k), (3) Roll it over to an IRA (more investment options), or (4) Cash out (not recommended — you'll pay income tax plus a 10% penalty if under 59½). A direct rollover to an IRA or new 401(k) avoids taxes and penalties.
The 4% rule is a retirement withdrawal guideline developed from the Trinity Study. It suggests you can withdraw 4% of your portfolio in your first year of retirement, then adjust for inflation each year, with a high probability your savings will last 30 years. For a $1,000,000 portfolio: first-year withdrawal = $40,000 ($3,333/month).
Required Minimum Distributions (RMDs) begin at age 73 for Traditional 401(k) and IRA accounts. The penalty for missing an RMD is 25% of the amount not withdrawn. Roth 401(k)s are now also subject to RMDs starting in 2024, though Roth IRAs are not. Planning your withdrawal strategy before age 73 can help minimize taxes.
Yes, in certain situations without the 10% penalty: (1) Substantially Equal Periodic Payments (72t), (2) Medical expenses exceeding 7.5% of AGI, (3) Disability, (4) Death (beneficiary), (5) Qualified reservist distributions, (6) Up to $5,000 for birth or adoption, (7) Up to $22,000 for qualified disaster recovery. You still owe income tax on Traditional withdrawals.
The general priority order: (1) Contribute to your 401(k) up to the employer match, (2) Max out a Roth IRA ($7,000 in 2025) for more investment flexibility and tax-free growth, (3) Return to your 401(k) to contribute more. If you want Traditional tax treatment or earn too much for a Roth IRA, stick with the 401(k). Both are valuable tools for different reasons.