401K Calculator
Calculate your 401K retirement savings with employer matching and tax benefits
A 401K is one of the most powerful retirement savings tools available. This calculator helps you understand how much you should contribute, how employer matching works, and how your 401K can grow over time with compound interest and tax advantages.
Growth Projection
How 401K Works
Tax Benefits
Traditional 401K: Contributions reduce current taxable income. You pay taxes when you withdraw in retirement.
Tax Savings: If you're in the 22% tax bracket and contribute $10,000, you save $2,200 in current taxes.
Tax-Deferred Growth: Your investments grow without annual tax on gains, dividends, or interest.
Employer Matching
Free Money: Employer matching is essentially free money added to your retirement savings.
Common Formula: 50% match up to 6% of salary means if you contribute 6%, employer adds 3%.
Vesting: Some employers require you to work a certain period before the match is fully yours.
Frequently Asked Questions
How much should I contribute to my 401K?
At minimum, contribute enough to get the full employer match - it's free money. Ideally, contribute 10-15% of your salary. If you can't afford that much, start with what you can and increase by 1% each year.
What are the 2024 contribution limits?
For 2024, you can contribute up to $23,000 if you're under 50, or $30,500 if you're 50 or older (includes $7,500 catch-up contribution). These limits are for employee contributions only and don't include employer matching.
When can I withdraw from my 401K?
Generally, you can withdraw without penalty starting at age 59½. Early withdrawals (before 59½) typically incur a 10% penalty plus income taxes. Some exceptions exist for hardships, first-time home purchases, and other specific situations.
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