Calculate your retirement savings with employer matching. See how much you'll have at retirement based on contributions and investment growth.
Enter your current age, salary, contribution percentage, and employer match. The calculator projects your 401(k) balance at retirement using compound growth assumptions.
Use when deciding how much to contribute, evaluating employer matches, or planning for retirement. Helps maximize your retirement savings.
Plan your retirement with 401(k) contributions and employer match
Employer matching is free money your employer contributes to your 401(k) based on your own contributions. It's one of the most valuable employee benefits available.
| Match Type | Example | What It Means |
|---|---|---|
| 50% up to 6% | Most common | Contribute 6%, get 3% match (total 9%) |
| 100% up to 3% | Dollar-for-dollar | Contribute 3%, get 3% match (total 6%) |
| 100% up to 4%, then 50% up to 6% | Tiered | Contribute 6%, get 5% match (total 11%) |
| Your Contribution | Employer Match | Total Annual | Your Cost |
|---|---|---|---|
| 0% ($0) | $0 | $0 | $0 |
| 3% ($1,800) | $900 | $2,700 | $1,800 |
| 6% ($3,600) | $1,800 | $5,400 | $3,600 |
| 10% ($6,000) | $1,800 | $7,800 | $6,000 |
Golden Rule: Always contribute at least enough to get the full employer match. It's an immediate 50-100% return on your money!
The ideal contribution depends on your age, income, and financial goals, but here are general guidelines:
| Age | Standard Limit | Catch-Up (50+) | Total Possible |
|---|---|---|---|
| Under 50 | $23,000 | - | $23,000 |
| 50 and older | $23,000 | +$7,500 | $30,500 |
| Age | Recommended % | Reasoning |
|---|---|---|
| 20s | 10-15% | Time is your biggest asset, compound growth is powerful |
| 30s | 12-18% | Balance family expenses with retirement needs |
| 40s | 15-20% | Increase contributions as income grows |
| 50s-60s | 20%+ or max | Final push, use catch-up contributions |
| Contribution % | Annual Amount | With 4% Match | Total Annual |
|---|---|---|---|
| 6% | $4,500 | $3,000 | $7,500 |
| 10% | $7,500 | $3,000 | $10,500 |
| 15% | $11,250 | $3,000 | $14,250 |
| 20% | $15,000 | $3,000 | $18,000 |
The main difference is when you pay taxes: now (Roth) or later (Traditional).
| Feature | Traditional 401(k) | Roth 401(k) |
|---|---|---|
| Contributions | Pre-tax (reduces current taxable income) | After-tax (no current tax benefit) |
| Tax Benefit | Now (lower taxes today) | Later (tax-free withdrawals) |
| Withdrawals | Fully taxed as ordinary income | Tax-free if qualified |
| RMDs | Required at age 73 | Required at age 73 (but can roll to Roth IRA) |
| Best For | High earners expecting lower tax bracket in retirement | Younger workers, those expecting higher taxes later |
Traditional 401(k) (22% tax bracket):
Roth 401(k) (22% tax bracket):
Choose Traditional if:
Choose Roth if:
Pro Tip: You can split contributions between both to diversify tax risk!
Understanding withdrawal rules helps you avoid costly penalties and plan for retirement.
Age 59½ is the magic number for penalty-free withdrawals from your 401(k).
Standard Penalty: 10% penalty + income tax on withdrawal
Example: Withdraw $20,000 at age 45 in 22% tax bracket:
You can withdraw without the 10% penalty (but still owe income tax) for:
| Exception | Details |
|---|---|
| Rule of 55 | Leave employer at age 55+ (age 50 for public safety) |
| Disability | Total and permanent disability |
| Medical expenses | Unreimbursed medical > 7.5% of AGI |
| QDRO | Divorce settlement (Qualified Domestic Relations Order) |
| Substantially equal payments | Series of substantially equal periodic payments (SEPP/72(t)) |
| First home | Up to $10,000 for first-time home purchase (IRA only, not 401k) |
Starting age: 73 (as of 2024)
Pro Tip: Roll 401(k) to Roth IRA to avoid RMDs and get tax-free growth!
Historical data provides guidance, but returns vary significantly based on your investment choices and market conditions.
Average annual return: ~10% (nominal) Inflation-adjusted: ~7% (real return)
| Investment Mix | Expected Return | Risk Level |
|---|---|---|
| Aggressive (90% stocks) | 8-10% | High volatility |
| Moderate (60% stocks, 40% bonds) | 6-8% | Medium volatility |
| Conservative (40% stocks, 60% bonds) | 4-6% | Lower volatility |
| Very Conservative (bonds/cash) | 2-4% | Low volatility |
7% is a reasonable conservative estimate because it:
Example: $500/month for 30 years
| Return Rate | Final Balance | Total Contribution | Growth |
|---|---|---|---|
| 5% | $416,129 | $180,000 | $236,129 |
| 7% | $611,729 | $180,000 | $431,729 |
| 10% | $1,130,244 | $180,000 | $950,244 |
Key Insight: A few percentage points in returns makes an enormous difference over decades. This is why:
Don't panic sell during downturns - you only lose money if you sell. Stay the course!
Have more questions? These calculators provide estimates for educational purposes only. For personalized financial advice, consult with a qualified financial professional. See our disclaimer for more information.