401(k) Calculator
Project your 401(k) balance at retirement with employee + employer contributions, salary growth, and market returns.
Details
Result
401(k) at Retirement
$3,226,987
Your Contributions
$513,928
Employer Match
$154,178
Investment Gains
$2,533,881
For estimation only. Not professional financial, tax, or legal advice. Consult a qualified advisor before making decisions. Full disclaimer.
How 401(k) works
A 401(k) is an employer-sponsored retirement account. You contribute pre-tax dollars from your paycheck (reducing current-year taxable income). Many employers offer a match — free money you should always capture in full. Your balance grows tax-deferred until withdrawal (typically after age 59½). Annual contribution limits are set by the IRS.
Maximize the employer match first
If your employer matches 50% of the first 6% of salary you contribute, contributing at least 6% is a 50% instant return — unbeatable anywhere. Then consider IRAs and other accounts for additional savings.
Traditional vs Roth 401(k)
Traditional: contribute pre-tax, pay tax at withdrawal. Roth: contribute after-tax, withdrawals tax-free. If you expect to be in a higher tax bracket at retirement (common for young professionals), Roth wins. If you\'re peak-earning now and will be lower in retirement, Traditional wins.
Common questions about 401(k)
What is the 2026 401(k) contribution limit?+
Projected $23,500 for employees under 50, $31,000 with catch-up (50+). Super catch-up for ages 60-63: $34,750. Employer + employee combined limit: $70,000.
How much should I contribute to get full employer match?+
At minimum, contribute enough to capture the full match — it's free money. Common: employer matches 50% of first 6% of salary. So contribute ≥ 6% to get the full 3% employer contribution.
Traditional vs Roth 401(k) — which is better?+
Traditional: tax deduction now, taxed at withdrawal. Roth: after-tax now, tax-free at withdrawal. Young + lower bracket + expecting higher future tax rate → Roth wins. Older + high bracket now → Traditional often wins.
What are Required Minimum Distributions (RMDs)?+
Starting at age 73 (age 75 if born 1960 or later, per SECURE 2.0 Act), you must withdraw a minimum amount from Traditional 401(k)/IRA each year based on IRS life expectancy tables. Roth 401(k) RMDs were eliminated starting 2024. Missing an RMD triggers a 25% excise tax (reducible to 10% if corrected within 2 years). A $1M Traditional 401(k) at age 73 requires ~$37,700 first RMD. Plan withdrawals to manage tax bracket pressure in retirement.
Can I take a 401(k) loan?+
Yes — up to 50% of vested balance, maximum $50,000, repaid over 5 years (15-30 years for home purchase). Interest (prime + 1-2%) is paid back to your own account. Downsides: repayment is after-tax dollars that will be taxed again at withdrawal (double taxation on interest); job loss often triggers full loan repayment within 60 days or treats it as an early withdrawal with 10% penalty; lost market growth on the withdrawn amount. Use only in emergencies after exhausting other options.
What happens to my 401(k) when I change jobs?+
Four options: (1) Leave with former employer (if plan allows, balance >$7,000). (2) Roll over to new employer's 401(k) (if accepts). (3) Roll over to an IRA (best for most — far more investment choices, lower fees). (4) Cash out (worst — 20% mandatory withholding + 10% penalty if under 59½ + income tax). Do a direct rollover to avoid the 20% withholding trap. 401(k)-to-IRA rollovers are tax-free and unlimited.