Estimate your retirement savings with year-by-year projections, employer match breakdowns, and personalized savings recommendations.
Enter Your Details
Your current age (18 - 90)
Target retirement age (50 - 85)
What you have saved today
Your gross annual income
Recommended: 5 - 15% of salary
Typical: 3 - 6% of salary
Historical S& 500 avg: ~7 - 10%
Balance at Retirement
,
Total Your Contributions
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Total Employer Match
,
Investment Growth
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Contributions vs. Investment Growth at Retirement
Recommended Savings Rate
Year-by-Year Projection
Age
Your Contribution
Employer Match
Investment Return
End Balance
401k Basics
A 401(k) is an employer-sponsored retirement savings plan that allows you to save and invest a portion of your paycheck before taxes are taken out (Traditional 401k) or after taxes (Roth 401k). Contributions grow tax-deferred or tax-free, respectively, until withdrawal in retirement.
Key has:
Tax advantages: Contributions reduce your taxable income (Traditional) or grow tax-free (Roth).
Employer match:: free money you should never leave on the table.
Contribution limits (2025): $23,500 for those under 50; $31,000 for those 50+ (including catch-up). Limits are adjusted annually for inflation.
Investment options: Most plans offer a range of mutual funds, target-date funds, and ETFs. You choose how your money is invested.
Portability: When you change jobs, you can roll your 401k into an IRA or your new employer's plan.
Pro tip: Always contribute enough to get your full employer match before contributing to other accounts. A typical match of 4% with a $75,000 salary means $3,000/year in free money.
Roth 401k vs. Traditional 401k
Most employer plans now offer both a Traditional 401k and a Roth 401k option. The choice depends on your tax situation now vs. in retirement.
Feature
Traditional 401k
Roth 401k
Contributions
Pre-tax (deductible now)
Post-tax (no deduction now)
Growth
Tax-deferred
Tax-free
Withdrawals
Taxed as ordinary income
Tax-free (if qualified)
Required Minimum Distributions (RMDs)
Yes, starting at age 73
Yes (Roth 401k has RMDs; Roth IRA does not)
Best for
Higher earners who expect lower tax rates in retirement
Younger workers who expect higher tax rates in retirement
Income limits
None
None (unlike Roth IRA)
General rule of thumb: If you're in a lower tax bracket now than you expect to be in retirement, contribute to a Roth. If you're in a higher bracket and expect lower income later, Traditional may be better. Many people split contributions between both.
Pro tip: A Roth 401k can be especially valuable for younger workers decades from retirement, as decades of tax-free compounding can dramatically outweigh the upfront tax cost.
Catch-Up Contributions (Age 50+)
If you're age 50 or older, the IRS allows you to make additional "catch-up" contributions beyond the standard 401k limit. This is designed to help you accelerate your savings as retirement approaches.
Standard limit (2025): $23,500
Catch-up contribution (2025): An additional $7,500
Total limit for 50+ (2025): $31,000
Starting in 2026, the SECURE 2.0 Act introduces a higher catch-up limit for those aged 60 - 63.
Pro tip: If you're 50+, this calculator automatically factors in catch-up contributions when your current age is 50 or older. The catch-up is calculated as an additional flat amount ($7,500/yr) on top of your regular percentage-based contribution.
Early Withdrawal Penalties
Withdrawing money from your 401k before age 59½ generally triggers significant penalties and taxes:
10% early withdrawal penalty on the amount withdrawn (with some exceptions).
Ordinary income tax:
Between federal and state taxes plus the penalty, you could lose 30 - 50% of your withdrawal to taxes and fees.
Exceptions to the 10% penalty (penalty waived, but income tax still applies for Traditional 401k):
Separation from service in or after the year you turn 55 (Rule of 55).
Total and permanent disability.
Medical expenses exceeding 7.5% of your adjusted gross income.
Qualified emergency expenses (SECURE 2.0, up to $1,000/year).
⚠ Warning: Cashing out your 401k when changing jobs is one of the most costly financial mistakes you can make. Roll over your 401k to an IRA or your new employer's plan instead.