401k Calculator
Projects your 401(k) balance at retirement based on contributions, employer match, and compound growth rate.
Forecast your 401(k) retirement savings growth over time by projecting your contributions, employer matches, and estimated investment returns.
Retirement projections feel abstract until you run the numbers yourself. Punch your salary, contribution rate, employer match, and expected return into the 401k calculator above and you get a concrete figure: what your account will likely be worth at retirement, broken down by what you contributed, what your employer added, and what compound growth did on its own. That third number — growth — is almost always the biggest one, and it’s the reason starting early matters more than contributing aggressively later.
2026 Contribution Limits: What the IRS Allows
The IRS adjusts 401(k) limits annually for inflation. For 2026, the employee deferral limit increased to $24,500 for workers under 50. Workers 50 and older can add a catch-up contribution of $8,000, bringing their total to $32,500. The SECURE 2.0 Act introduced a “super catch-up” for workers aged 60–63 specifically: those employees can contribute up to $35,750 in 2026 — the highest allowable employee deferral in the plan’s history.
| Age Group | 2026 Employee Limit | Catch-Up Provision | Combined Limit (Employee + Employer) |
|---|---|---|---|
| Under 50 | $24,500 | None | $70,000 |
| 50–59 and 64+ | $32,500 | $8,000 | $77,500 |
| 60–63 (SECURE 2.0) | $35,750 | $11,250 super catch-up | $80,750 |
How Employer Match Actually Works
The most common match formula is 50% of contributions up to 6% of salary. On a $75,000 salary, that means contributing $4,500 (6%) earns a $2,250 employer match — a 50% instant return on those dollars before any market growth occurs. Not capturing the full match by contributing below the threshold is the single most costly retirement planning mistake most employees make.
| Match Formula | $60,000 Salary | $90,000 Salary | Min. Contribution to Capture Full Match |
|---|---|---|---|
| 50% up to 6% of salary | $1,800/yr employer | $2,700/yr employer | 6% of salary |
| Dollar-for-dollar up to 4% | $2,400/yr employer | $3,600/yr employer | 4% of salary |
| 100% first 3%, 50% next 2% | $2,400/yr employer | $3,600/yr employer | 5% of salary |
| No match | $0 | $0 | N/A |
One trap worth knowing: if you hit the $24,500 employee limit early in the year — say by October — many employers stop their match for the remainder of the year because there’s no contribution to match. Spreading contributions evenly across all 26 or 52 pay periods ensures you keep collecting the match through December.
Why Time Dominates Every Other Variable
The calculator inputs that matter most, ranked by impact on final balance:
- Years until retirement — compound growth is exponential. A 25-year-old contributing $6,000/year at 7% ends up with ~$1.37M by 65. A 35-year-old doing the same ends up with ~$680,000. The 10 extra years produced $690,000 in additional wealth; the extra contributions were only $60,000 of that. The remaining $630,000 came purely from compounding.
- Rate of return — the difference between a 5% and 7% return on a $300,000 balance over 20 years is roughly $290,000. Index funds with expense ratios below 0.10% versus actively managed funds at 0.80–1.20% can represent that difference in real returns over a career.
- Employer match — free money with a guaranteed 50–100% return on the matched portion. Always prioritize capturing the full match before allocating to an IRA or taxable account.
- Contribution rate — the conventional guidance is 10–15% of gross salary including employer match. If starting late, 20%+ is more realistic for catching up.
Projected Balances at Common Scenarios (7% Annual Return)
| Starting Age | Salary | Contribution Rate | Employer Match | Projected Balance at 65 |
|---|---|---|---|---|
| 25 | $55,000 | 6% | 50% up to 6% | ~$1,040,000 |
| 30 | $70,000 | 8% | 50% up to 6% | ~$1,180,000 |
| 35 | $85,000 | 10% | 50% up to 6% | ~$1,090,000 |
| 40 | $100,000 | 15% | 50% up to 6% | ~$980,000 |
| 45 | $110,000 | 20% | 50% up to 6% | ~$800,000 |
Early Withdrawal: What It Actually Costs
Withdrawing from a 401(k) before age 59½ triggers a 10% federal penalty on the amount withdrawn plus ordinary income tax at your marginal rate. On a $30,000 withdrawal for someone in the 22% federal bracket: $3,000 penalty + $6,600 federal tax = $9,600 gone immediately, leaving $20,400. State income tax reduces it further. The total effective cost is typically 30–40% of the withdrawal — and that doesn’t account for the future growth lost on the withdrawn principal.
The exceptions are narrow: age 55 separation from service (for that employer’s plan only), SEPP/72(t) distributions, disability, death, certain medical expenses exceeding 7.5% of AGI, and qualified domestic relations orders. None of these apply to the most common reason people withdraw early: short-term cash needs. A 401(k) loan, where available, is generally a less costly alternative — though it carries its own risks if you leave the employer before repaying.
Required Minimum Distributions (RMDs)
Under the SECURE 2.0 Act, RMDs now begin at age 73 (pushed back from 72). The IRS calculates your annual RMD by dividing your prior year-end account balance by a life expectancy factor from their Uniform Lifetime Table. Failing to take the full RMD triggers a 25% excise tax on the shortfall — reduced to 10% if corrected within two years. Roth 401(k) accounts are now also exempt from RMDs during the owner’s lifetime under SECURE 2.0, aligning them with Roth IRA treatment.
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At minimum, contribute enough to capture your full employer match — that's a 50–100% guaranteed return on those dollars. Beyond that, the standard guidance is 15% of gross income including the match. If you're starting after 35, aim for 20%+ to compensate for the lost compounding years.
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Traditional contributions are pre-tax — they reduce taxable income now, withdrawals are taxed in retirement. Roth contributions are post-tax — no deduction now, but qualified withdrawals are completely tax-free. Younger workers in lower brackets generally benefit more from Roth; higher earners near peak income often benefit more from traditional.
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Roll it into your new employer's 401(k) or an IRA to preserve tax-deferred status. Cashing out triggers income tax plus a 10% early withdrawal penalty — typically 30–40% of the amount gone immediately.
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No. The $24,500 employee limit (2026) and employer contributions are tracked separately. Employer matching counts against the combined $70,000 limit, not your personal deferral cap.