🎯 401(k) Calculator
Project your 401(k) balance at retirement with employer match, contribution rate, and investment returns.…
Maximizing Your 401(k)
A 401(k) is one of the most powerful wealth-building tools available. Contributions are pre-tax (reducing your current tax bill), grow tax-deferred, and many employers match a portion of your contributions — that match is an instant 50–100% return on your contribution, making it the single best investment available to most employees.
2025 401(k) Contribution Limits
| Contribution Type | Under 50 | Age 50+ |
|---|---|---|
| Employee Contribution | $23,500 | $31,000 |
| Employer + Employee Total | $70,000 | $77,500 |
How Employer Matching Works
The most common match is 50% of contributions up to 6% of salary. If you earn $80,000 and contribute 6% ($4,800), your employer adds another $2,400 — a guaranteed 50% return before any investment gains. Never leave employer match money on the table.
Traditional vs. Roth 401(k)
Traditional: Pre-tax contributions reduce today's taxable income but withdrawals are taxed in retirement. Roth: After-tax contributions but all qualified withdrawals (including earnings) are completely tax-free. Roth is generally better if you expect to be in a higher tax bracket in retirement.