401(k) Calculator (US)
Calculate your US 401(k) retirement savings with employer matching. Three growth scenarios (conservative, moderate, aggressive) with yearly projections for American investors.
About This Calculator
A 401(k) is one of the most powerful retirement savings tools available to US employees, offering tax advantages and often free money through employer matching. Our calculator projects your 401(k) balance at retirement under three different scenarios to help you understand the impact of your savings rate and investment returns.
The calculator models your contributions, employer match, and investment growth year by year. It shows three scenarios: a conservative estimate (5% return), a moderate scenario based on your expected return, and an aggressive projection (12% return).
Key Features of 401(k) Plans (US):
- Pre-tax contributions reduce your taxable income
- Tax-deferred growth until retirement
- Employer match provides free additional contributions
- High contribution limits ($24,500 in 2026)
- Catch-up contributions for ages 50+ ($8,000 extra; $11,250 for ages 60-63)
- Portable when changing jobs via rollover
Tips for Maximizing Your 401(k):
- Always contribute enough to get the full employer match
- Increase your contribution by 1-2% each year
- Use target-date funds for automatic rebalancing
- Consider Roth 401(k) if you expect higher taxes later
- Don't cash out when changing jobs - roll over instead
Frequently Asked Questions
What is a 401(k) plan?
A 401(k) is an employer-sponsored retirement savings plan that allows employees to contribute a portion of their pre-tax salary to a tax-advantaged investment account. Contributions grow tax-deferred until withdrawal in retirement. Many employers offer matching contributions up to a certain percentage of salary.
How does employer match work?
Employer match is when your employer contributes additional money to your 401(k) based on your own contributions. A common structure is 50% match on the first 6% of salary, meaning if you contribute 6%, your employer adds 3%. Always contribute at least enough to get the full employer match - it's free money.
What are the 401(k) contribution limits?
For 2026, the employee contribution limit is $24,500 (or $32,500 for those aged 50 and above due to catch-up contributions; $35,750 for ages 60-63 under SECURE 2.0). The total contribution limit including employer match is $72,000 (or $80,000 with catch-up; $83,250 for ages 60-63). These limits are adjusted annually for inflation.
When can I withdraw from 401(k) without penalty?
You can withdraw from 401(k) without penalty starting at age 591/2. Withdrawals before age 591/2 are subject to a 10% early withdrawal penalty plus income tax on the amount withdrawn. Some exceptions include first-time home purchase ($10,000), disability, or substantial medical expenses.
What happens to my 401(k) when I change jobs?
When changing jobs, you have several options: leave the 401(k) with your former employer, roll over to your new employer's 401(k), roll over to an IRA, or cash out (not recommended due to taxes and penalties). Rolling over to an IRA or new 401(k) maintains the tax advantages.
What is the difference between traditional 401(k) and Roth 401(k)?
Traditional 401(k) contributions are made with pre-tax dollars, reducing your taxable income now. Withdrawals in retirement are taxed as ordinary income. Roth 401(k) contributions are made with after-tax dollars, but withdrawals in retirement are tax-free. Some employers offer both options.
What investment options are available in a 401(k)?
Typical 401(k) investment options include target-date funds, index funds, mutual funds, bonds, and company stock. Target-date funds are popular as they automatically adjust asset allocation based on your retirement date. Most plans offer a selection of 10-20 investment options.
How much should I contribute to my 401(k)?
A common recommendation is to contribute at least enough to get the full employer match (usually 6-10% of salary). For a comfortable retirement, aim to save 10-15% of your income including employer match. The calculator shows three scenarios to help you decide.
Can I have both a 401(k) and an IRA?
Yes, you can contribute to both a 401(k) and an IRA in the same year. However, if your income exceeds certain limits, your traditional IRA contributions may not be tax-deductible if you have a workplace retirement plan. Roth IRA contributions have income limits. Having both can help maximize your retirement savings.
What is a 401(k) loan?
Some 401(k) plans allow you to borrow from your own account balance. Loans are typically limited to 50% of your vested balance or $50,000, whichever is less. The loan must be repaid with interest within 5 years (unless used for a home purchase). However, borrowing from your 401(k) reduces your investment growth potential.