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401(k) Calculator

Estimate your 401(k) balance at retirement, calculate early withdrawal costs, and optimize employer match contributions.

401(k) Balance at Retirement

$1.67M

Your Contributions

$453,466

Employer Match

$68,020

Investment Growth

$1.11M

Monthly Retirement Income

$9,188

Contributing 10% of salary with 50% employer match (up to 3% of salary) for 35 years at 6% return.

How a 401(k) Works

A 401(k) is one of the most powerful tools for building retirement wealth. Contributions come from pre-tax income, reducing your current tax bill. Investments grow tax-deferred, and you pay taxes only when you withdraw in retirement.

Three Calculators in One

  • Growth Projection: Estimates your 401(k) balance at retirement based on contributions, employer match, salary growth, and investment returns. Includes a year-by-year breakdown.
  • Early Withdrawal: Shows exactly how much you lose to the 10% penalty and federal/state/local taxes when withdrawing before age 59½.
  • Maximize Match: Finds the minimum contribution percentage to capture your full employer match — so you never leave free money on the table.

2025 Contribution Limits

  • Employee limit: $23,500 per year
  • Catch-up (age 50+): Additional $7,500 ($31,000 total)
  • Total limit (incl. employer): $69,000

Employer Match Explained

Common match formulas include:

  • Dollar-for-dollar up to 3%: You contribute 3%, employer adds 3%
  • 50 cents on the dollar up to 6%: You contribute 6%, employer adds 3%
  • Tiered match: 100% on first 3%, then 50% on next 2%

Always contribute at least enough to get the full match. It is an immediate 50-100% return on your money.

Early Withdrawal Penalties

Taking money out before 59½ triggers a 10% early withdrawal penalty plus regular income tax. A $10,000 withdrawal could cost $4,000+ in taxes and penalties.

Penalty exemptions include:

  • Total and permanent disability
  • Medical expenses exceeding 7.5% of AGI
  • Qualified domestic relations order (QDRO)
  • Substantially equal periodic payments (Rule 72t)
  • Separation from service at age 55+

Maximizing Your 401(k)

  • Get the full match: This is free money — prioritize it above all else
  • Increase contributions annually: Bump up 1% each year, especially after raises
  • Choose low-cost index funds: Expense ratios under 0.20% save thousands over decades
  • Avoid early withdrawals: The tax hit plus penalty plus lost compound growth is devastating
  • Consider Roth: If you are early in your career and in a low tax bracket, Roth contributions may save you more long-term

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Frequently Asked Questions

What is a 401(k)?

A 401(k) is an employer-sponsored retirement savings plan that lets you contribute pre-tax dollars from your paycheck. Investments grow tax-deferred until withdrawal in retirement.

What are the 2025 401(k) contribution limits?

For 2025, the employee contribution limit is $23,500. If you are 50 or older, you can make an additional $7,500 catch-up contribution for a total of $31,000. The total limit including employer contributions is $69,000.

How does employer matching work?

Employers may match a percentage of your contributions up to a limit. For example, "50% match up to 3% of salary" means if you earn $75,000 and contribute at least 3% ($2,250), the employer adds $1,125 (50% of $2,250).

What is the early withdrawal penalty?

Withdrawals before age 59½ typically incur a 10% early withdrawal penalty on top of regular income taxes. Exceptions include disability, certain medical expenses, and substantially equal periodic payments (72t).

Traditional vs Roth 401(k) — what is the difference?

Traditional 401(k) contributions are pre-tax (reduce taxable income now, taxed on withdrawal). Roth 401(k) contributions are after-tax (no tax break now, but withdrawals in retirement are tax-free). Choose Roth if you expect higher taxes in retirement.

What happens to my 401(k) if I leave my job?

You can leave it with the former employer, roll it into an IRA or new employer plan, or cash it out (triggers taxes and penalties if under 59½). Rolling over is usually the best option to avoid penalties.