401k Calculator

Year	Age	Your Contribution	Employer Match	Growth	Balance
1	31	$7,500	$2,250	$2,433	$37,183
2	32	$7,725	$2,318	$3,306	$50,531
3	33	$7,957	$2,387	$4,261	$65,136
4	34	$8,195	$2,459	$5,305	$81,095
5	35	$8,441	$2,532	$6,445	$98,514
6	36	$8,695	$2,608	$7,687	$117,504
7	37	$8,955	$2,687	$9,040	$138,186
8	38	$9,224	$2,767	$10,512	$160,690
9	39	$9,501	$2,850	$12,113	$185,153
10	40	$9,786	$2,936	$13,851	$211,726
11	41	$10,079	$3,024	$15,738	$240,568
12	42	$10,382	$3,115	$17,784	$271,848
13	43	$10,693	$3,208	$20,002	$305,752
14	44	$11,014	$3,304	$22,405	$342,475
15	45	$11,344	$3,403	$25,006	$382,228
16	46	$11,685	$3,505	$27,819	$425,238
17	47	$12,035	$3,611	$30,862	$471,746
18	48	$12,396	$3,719	$34,150	$522,011
19	49	$12,768	$3,830	$37,703	$576,312
20	50	$13,151	$3,945	$41,539	$634,948
21	51	$13,546	$4,064	$45,679	$698,236
22	52	$13,952	$4,186	$50,146	$766,520
23	53	$14,371	$4,311	$54,964	$840,167
24	54	$14,802	$4,441	$60,159	$919,568
25	55	$15,246	$4,574	$65,757	$1,005,145
26	56	$15,703	$4,711	$71,789	$1,097,348
27	57	$16,174	$4,852	$78,286	$1,196,661
28	58	$16,660	$4,998	$85,282	$1,303,601
29	59	$17,159	$5,148	$92,814	$1,418,722
30	60	$17,674	$5,302	$100,919	$1,542,617
31	61	$18,204	$5,461	$109,640	$1,675,923
32	62	$18,751	$5,625	$119,021	$1,819,320
33	63	$19,313	$5,794	$129,110	$1,973,536
34	64	$19,893	$5,968	$139,958	$2,139,355
35	65	$20,489	$6,147	$151,619	$2,317,610

Year

Age

Your Contribution

Employer Match

Growth

Balance

$7,500

$2,250

$2,433

$37,183

$7,725

$2,318

$3,306

$50,531

$7,957

$2,387

$4,261

$65,136

$8,195

$2,459

$5,305

$81,095

$8,441

$2,532

$6,445

$98,514

$8,695

$2,608

$7,687

$117,504

$8,955

$2,687

$9,040

$138,186

$9,224

$2,767

$10,512

$160,690

$9,501

$2,850

$12,113

$185,153

$9,786

$2,936

$13,851

$211,726

$10,079

$3,024

$15,738

$240,568

$10,382

$3,115

$17,784

$271,848

$10,693

$3,208

$20,002

$305,752

$11,014

$3,304

$22,405

$342,475

$11,344

$3,403

$25,006

$382,228

$11,685

$3,505

$27,819

$425,238

$12,035

$3,611

$30,862

$471,746

$12,396

$3,719

$34,150

$522,011

$12,768

$3,830

$37,703

$576,312

$13,151

$3,945

$41,539

$634,948

$13,546

$4,064

$45,679

$698,236

$13,952

$4,186

$50,146

$766,520

$14,371

$4,311

$54,964

$840,167

$14,802

$4,441

$60,159

$919,568

$15,246

$4,574

$65,757

$1,005,145

$15,703

$4,711

$71,789

$1,097,348

$16,174

$4,852

$78,286

$1,196,661

$16,660

$4,998

$85,282

$1,303,601

$17,159

$5,148

$92,814

$1,418,722

$17,674

$5,302

$100,919

$1,542,617

$18,204

$5,461

$109,640

$1,675,923

$18,751

$5,625

$119,021

$1,819,320

$19,313

$5,794

$129,110

$1,973,536

$19,893

$5,968

$139,958

$2,139,355

$20,489

$6,147

$151,619

$2,317,610

Understanding Your 401k

A 401k is an employer-sponsored retirement savings plan that allows you to save pre-tax dollars for retirement. Named after section 401(k) of the tax code, these plans offer significant tax advantages: your contributions reduce your taxable income today, and your investments grow tax-deferred until withdrawal in retirement.

The power of a 401k comes from three sources: your contributions, employer matching (essentially free money), and compound growth over decades. Even modest contributions can grow to substantial sums given enough time—making it critical to start early and contribute consistently.

Maximizing Your Employer Match

Employer matching is the best return on investment you'll ever get—it's literally free money. If your employer matches 50% of your contributions up to 6% of salary, contributing that 6% gives you an immediate 50% return before any investment growth.

Understanding your match formula is crucial. Common structures include:

Dollar-for-dollar up to X%: 100% match on contributions up to a percentage of salary
50 cents per dollar up to X%: 50% match on contributions up to a percentage
Tiered matching: Different rates at different contribution levels

Always contribute at least enough to get your full match. Leaving matching money on the table is like declining part of your salary.

The Magic of Compound Growth

The earlier you start contributing, the more time compound interest has to work. At 7% annual returns, money doubles roughly every 10 years. Starting at 25 instead of 35 could mean the difference between $1 million and $500,000 at retirement—even with the same contribution rate.

This calculator assumes reinvested returns and accounts for the powerful effect of compounding over your working years. Even small increases in contribution rate can dramatically impact your final balance due to decades of compound growth.

401k Tax Benefits

Traditional 401k contributions reduce your taxable income dollar-for-dollar. In a 22% tax bracket, contributing $10,000 saves $2,200 in federal taxes that year. Your money then grows tax-deferred—no taxes on dividends or capital gains until withdrawal.

Withdrawals in retirement are taxed as ordinary income. The strategy is that many people are in lower tax brackets in retirement than during working years, making the tax deferral beneficial. However, required minimum distributions (RMDs) start at age 73.

Contribution Strategies by Age

20s-30s: Prioritize getting the full employer match. Aim for 10-15% total savings rate. Time is your biggest asset—aggressive growth investments make sense.

40s: Increase contributions as income grows. Evaluate if you're on track for retirement goals. Consider catch-up contributions as you approach 50.

50s-60s: Maximize contributions including catch-up contributions. Gradually shift to more conservative investments. Plan withdrawal strategies for retirement.

Frequently Asked Questions

What is the 401k contribution limit for 2024?

The IRS 401k contribution limit for 2024 is $23,000 for employee contributions. If you're 50 or older, you can contribute an additional $7,500 catch-up contribution, for a total of $30,500. Employer contributions don't count toward these limits.

What is employer matching and how does it work?

Employer matching is free money your company adds to your 401k based on your contributions. A common match is '50% up to 6%' meaning your employer contributes 50 cents for every dollar you contribute, up to 6% of your salary. Always contribute enough to get the full match—it's an immediate 50-100% return.

What is a good 401k contribution percentage?

Financial experts recommend saving 15-20% of income for retirement, including employer match. At minimum, contribute enough to get your full employer match. If you start in your 20s, 10-15% may be sufficient. Starting later requires higher percentages to catch up.

Should I choose traditional or Roth 401k?

Traditional 401k contributions are pre-tax (tax deduction now, taxed at withdrawal). Roth 401k uses after-tax money (no deduction now, tax-free withdrawal). Choose Roth if you expect higher taxes in retirement. Traditional is better if your current tax rate is higher than expected retirement rate. Many people benefit from having both.

401k Calculator

This Year's Contributions

Balance Composition at Retirement

Year-by-Year Projections