Financial Calculators
401(k) Retirement Savings Calculator
Project your 401(k) balance at retirement. Model employee contributions, employer match, IRS catch-up limits, salary growth, and compound returns year by year.
Projected balance at retirement
$1,343,060.00
Your contributions
$194,727.00
Employer match
$194,727.00
Investment growth
$928,606.00
Balance composition
Retirement balance composition
| Segment | Value | Percentage |
|---|---|---|
| Your contributions | $194,727.00 | 14.8% |
| Employer match | $194,727.00 | 14.8% |
| Investment growth | $928,606.00 | 70.5% |
Balance growth over time
How 401(k) plans work
A 401(k) is an employer-sponsored retirement plan that lets you contribute pre-tax dollars from each paycheck directly into an investment account. Your contributions reduce your taxable income today, and the money grows tax-deferred until you withdraw it in retirement.
Employer matching: free money
Many employers match a portion of employee contributions. A common formula is "100% match on the first 6% of salary." If you earn $80,000 and contribute 6% ($4,800), your employer adds another $4,800, which is a 100% instant return. Always contribute at least enough to capture the full employer match before allocating savings elsewhere.
IRS contribution limits
For 2025 the employee elective deferral limit is $23,500. Employees age 50 and older can make an additional catch-up contribution of $7,500, for a total of $31,000. The combined employee + employer limit is $70,000 (age 50+: $77,500). This calculator automatically applies IRS catch-up limits starting at age 50.
The power of compounding over decades
At a 7% annual return, money doubles roughly every 10 years (the Rule of 72). Starting contributions at 25 instead of 35 roughly doubles the final balance at 65: an extra decade of compounding can be worth more than all the contributions you make in the subsequent 30 years.
Roth 401(k) vs. traditional 401(k)
Some employers offer a Roth 401(k) option. Traditional contributions are pre-tax (reducing taxable income now; taxed on withdrawal). Roth contributions are after-tax (no deduction now; tax-free in retirement). The same contribution limits apply to both. If you expect to be in a higher tax bracket in retirement, the Roth option may be advantageous.
IRS contribution limit history
| Year | Employee limit | Catch-up (age 50+) | Total limit |
|---|---|---|---|
| 2021 | $19,500 | +$6,500 | $58,000 |
| 2022 | $20,500 | +$6,500 | $61,000 |
| 2023 | $22,500 | +$7,500 | $66,000 |
| 2024 | $23,000 | +$7,500 | $69,000 |
| 2025 | $23,500 | +$7,500 | $70,000 |
Limits have risen by roughly $500–$1,000 most years to keep pace with inflation. Checking for annual limit increases and adjusting contributions accordingly is a simple way to boost retirement savings over time.
Vesting schedules
Your own contributions are always 100% vested immediately. Employer match contributions, however, may be subject to a vesting schedule:
- Cliff vesting: You receive 0% of employer contributions until you reach a certain tenure (often 2–3 years), then 100% immediately. Leaving before the cliff means forfeiting all employer match.
- Graded vesting: Employer contributions vest gradually - for example, 20% per year over 5 years. Leaving after 3 years means you keep 60% of employer contributions.
Always check your plan's vesting schedule before changing jobs, especially if a cliff date is approaching.
Required Minimum Distributions (RMDs)
The IRS requires you to begin withdrawing from traditional 401(k) accounts starting at age 73 (as updated by the SECURE 2.0 Act of 2022). The annual RMD amount is calculated by dividing the prior year-end account balance by a life expectancy factor from IRS tables. Failing to take an RMD results in a 25% excise tax on the amount not withdrawn (reduced to 10% if corrected promptly). Roth 401(k) accounts are also subject to RMDs unless rolled over to a Roth IRA.