401(k) Calculator
Calculate your retirement savings potential and plan for your financial future
401(k) Retirement Calculator
Calculate how much your 401(k) could be worth at retirement and estimate your monthly retirement income based on your contributions, employer match, and investment returns.
đ° 401(k) Details
đ Result
Balance at 65:
Withdrawal
If withdrawing at fixed purchasing power monthly, $9,494 per month can be withdrawn from age 66 and increase 3% per year until 85. It is equivalent to $3,374 in purchasing power today.
If withdrawing at fixed amount monthly, $12,264 per month can be withdrawn in retirement until 85. At 66, this is equivalent to $4,358 in purchasing power today, and at 85, is equivalent to $2,413.
If withdrawing at fixed amount annually, $149,243 per year can be withdrawn in retirement until 85. At 65, this is equivalent to $53,038 in purchasing power today, and at 85, is equivalent to $29,366.
Monthly Contributions
â ī¸ 401(k) Early Withdrawal Costs Calculator
Early 401(k) withdrawals will result in a penalty. This calculation can determine the actual amount received if opting for an early withdrawal.
Result
Amount to Receive: $6,000.00
| Total Tax and Penalty: | $4,000.00 |
| Penalty: | $1,000.00 |
| Federal Income Tax: | $2,500.00 |
| State Income Tax: | $500.00 |
| Local Income Tax: | $0.00 |
đ¯ Maximize Employer 401(k) Match Calculator
Contribution percentages that are too low or too high may not take full advantage of employer matches. If the percentage is too high, contributions may reach the IRS limit before the end of the year. As a result, employers will not match for the rest of the year. This calculation can show the contribution percentage window in order to take full advantage of the employer's matching contributions.
Result
It is recommended to make contributions to your 401(k) somewhere between 6% and 31.33% of annual income to take full advantage of your employer match.
By contributing 6%, the total 401(k) contribution amount will be $6,075, within which employer match is $1,575 and employee contribution is $4,500.
By contributing 31.33%, the total 401(k) contribution amount will be $25,075, within which employer match is $1,575 and employee contribution is $23,500. 31.33% is a very high contribution percentage, and not all employers allow such high contribution percentages.
đ Understanding 401(k) Plans
Tax Benefits
401(k) contributions are made with pre-tax dollars, reducing your current taxable income. Your money grows tax-deferred until withdrawal in retirement.
Employer Match
Many employers offer matching contributions, often called "free money." Always contribute enough to get the full employer match.
Contribution Limits
For 2025, you can contribute up to $23,500 to your 401(k). If you're 50 or older, you can contribute an additional $7,500 catch-up contribution.
What is a 401(k)?
A 401(k) is a retirement savings plan offered by many employers. It allows you to save and invest for retirement on a tax-deferred basis. Named after a section of the Internal Revenue Code, 401(k) plans have become the primary retirement savings vehicle for millions of Americans.
When you contribute to a traditional 401(k), your contributions are deducted from your paycheck before taxes are calculated, which reduces your current taxable income. The money in your account grows tax-deferred, meaning you won't pay taxes on the gains until you withdraw the money in retirement.
Key Benefits of 401(k) Plans
- Tax-deferred growth: Your investments grow without being taxed until withdrawal
- Employer matching: Many employers match a portion of your contributions
- High contribution limits: Higher limits than IRAs allow for more retirement savings
- Automatic payroll deduction: Makes saving for retirement convenient and consistent
- Investment options: Access to professionally managed investment funds
Important Considerations
- Early withdrawal penalties: 10% penalty plus taxes if you withdraw before age 59ÂŊ
- Required minimum distributions: Must begin taking distributions at age 73
- Limited investment choices: You're restricted to the investment options your plan offers
- Vesting schedules: Employer matching contributions may vest over time