401(k) Retirement Calculator
Plan your retirement savings with our comprehensive 401(k) Calculator. Calculate how much you'll have at retirement including employer matching contributions, catch-up contributions for those 50+, and the power of compound growth. Understand the tax benefits of Traditional vs Roth 401(k) plans.
Understanding 401(k) Contribution Limits
The IRS sets annual contribution limits for 401(k) plans. These limits are adjusted for inflation and change each year:
| Year | Standard Limit | Catch-Up (50+) | Total with Catch-Up |
|---|---|---|---|
| 2024 | $23,000 | $7,500 | $30,500 |
| 2026 | $23,000 | $7,500 | $30,500 |
| 2026 | $23,000 | $7,500 | $30,500 |
Example 401(k) Growth Scenarios
Here are example retirement balances based on different contribution scenarios. These assume a 7% annual return and employer matching:
| Annual Contribution | Employer Match | Years | Retirement Balance |
|---|---|---|---|
| $5,000 | 50% up to 6% | 40 | $1.2M |
| $10,000 | 50% up to 6% | 40 | $1.8M |
| $15,000 | 100% up to 3% | 40 | $2.4M |
| $23,000 (max) | 50% up to 6% | 40 | $3.1M |
Related Financial Calculators
If you're planning for retirement or managing your finances, these related calculators can help:
- Retirement Calculator: Calculate how much you need to save for retirement and see if you're on track to meet your retirement goals.
- Compound Interest Calculator: Understand how compound interest works and see the power of long-term investing, which is the foundation of 401(k) growth.
- Paycheck Calculator: Calculate your take-home pay after 401(k) contributions and other deductions to see how much you can afford to contribute.
- ROI Calculator: Calculate the return on investment for your financial decisions and compare different investment strategies.
- Budget Calculator: Use the 50-30-20 rule to plan your budget and see how much you can afford to contribute to your 401(k) while maintaining financial balance.
Frequently Asked Questions About 401(k)
Q:What is the 401(k) contribution limit for 2026?
For 2026, the standard 401(k) contribution limit is $23,000 per year. Employees aged 50 and older can make catch-up contributions of an additional $7,500, bringing their total limit to $30,500 per year.
Q:How does employer matching work?
Employer matching varies by company. Common examples include: 50% match up to 6% of salary (if you contribute 6%, employer adds 3%), or dollar-for-dollar match up to 3% (if you contribute 3%, employer adds 3%). Some employers match 100% up to a certain percentage of your salary.
Q:What is the difference between Traditional and Roth 401(k)?
Traditional 401(k) contributions are made with pre-tax dollars, reducing your taxable income now. You pay taxes when you withdraw in retirement. Roth 401(k) contributions are made with after-tax dollars, so you pay taxes now but withdrawals in retirement are tax-free. Both have the same contribution limits.
Q:When can I withdraw from my 401(k) without penalty?
You can withdraw from your 401(k) without the 10% early withdrawal penalty after age 59½. You must start taking Required Minimum Distributions (RMDs) at age 73 (for those who reach age 73 after 2022). Withdrawals before age 59½ typically incur a 10% penalty plus income taxes, with some exceptions like hardship withdrawals or loans.
Q:What happens to my 401(k) if I change jobs?
When you change jobs, you have several options: 1) Leave it with your former employer (if allowed), 2) Roll it over to your new employer's 401(k) plan, 3) Roll it over to an IRA, or 4) Cash it out (not recommended due to taxes and penalties). Rolling over to an IRA or new 401(k) preserves the tax-advantaged status.
Q:Should I contribute to a 401(k) or pay off debt first?
Generally, you should contribute enough to get the full employer match (it's free money), then prioritize high-interest debt. After paying off high-interest debt, maximize your 401(k) contributions. The employer match typically provides an immediate 50-100% return, which is hard to beat.