401k Calculator

At minimum, contribute enough to get your full employer match—that's free money. A common guideline is to save 10-15% of your income for retirement, including employer match. If you start in your 20s, 10% may be enough. Starting in your 40s? Aim for 15-20% or more.

An employer match is when your company contributes to your 401k based on how much you contribute. A common match is "50% up to 6%"—meaning if you contribute 6% of your salary, your employer adds another 3%. This is essentially a 50% instant return on your money.

In 2026, you can contribute up to $24,500 to your 401k. If you're 50 or older, you can add an $8,000 catch-up contribution ($32,500 total). Ages 60-63 get a super catch-up of $11,250 ($35,750 total) under SECURE 2.0. These limits don't include employer matching.

Traditional 401k: Contributions are pre-tax (lowers today's taxes), but you pay taxes on withdrawals in retirement. Roth 401k: Contributions are after-tax (no tax break today), but withdrawals are tax-free. Choose Roth if you expect higher taxes in retirement; Traditional if you expect lower taxes later.

Historical stock market returns average about 10% annually before inflation (7% after). A balanced portfolio (mix of stocks and bonds) typically returns 6-8%. We use 7% as a reasonable long-term estimate. Your actual returns depend on your investment choices and market conditions.

You can withdraw without penalty at age 59½. Early withdrawals typically face a 10% penalty plus income taxes. Exceptions include: disability, certain medical expenses, or the "Rule of 55" (leaving your job at 55+). Required Minimum Distributions (RMDs) start at age 73.