401(k) Calculator

An employer match means your company contributes additional money to your 401(k) based on what you contribute. The most common structure is '50% up to 6% of salary', meaning the employer adds 50 cents for every dollar you contribute, up to 6% of your salary. On a $75,000 salary contributing 6%, you add $4,500 and your employer adds $2,250 for a total of $6,750 per year. Always contribute at least enough to get the full match; it is the closest thing to free money in personal finance.

For 2026, the projected employee elective deferral limit is $23,500 for workers under 50 and $31,000 for workers 50 and older (including $7,500 catch-up contribution). The combined employee-plus-employer limit is $70,000 under 50 and $77,500 for 50+. These are IRS-published limits that typically adjust for inflation each year.

The S&P 500 has returned about 10% per year nominally over the past 95 years. After 3% inflation, the real return is closer to 7%. For conservative planning, use 5-7% as your expected annual return. Aggressive target-date funds returning 10%+ historically are possible but plan for the lower end to avoid shortfall risk. For bond-heavy portfolios or a conservative allocation, 4-6% is more realistic.

Priority order: 1) contribute at least enough to get the full employer match, 2) pay off high-interest debt like credit cards, 3) build an emergency fund of 3-6 months expenses, 4) contribute to a Roth IRA up to the $7,000 limit ($8,000 if 50+), 5) max out 401(k) up to $23,500, 6) consider taxable investing or backdoor Roth. For most people, step 4 (Roth IRA) comes before maxing the 401(k) because Roth gives tax diversification in retirement.

Traditional 401(k) contributions reduce your taxable income now and are taxed in retirement. Roth 401(k) contributions are made with after-tax money but grow and withdraw tax-free. If you expect to be in a higher tax bracket in retirement, Roth wins. If you expect to be in a lower bracket (common for high earners), Traditional wins. The cleanest advice: split contributions between both if your plan allows it, giving you tax diversification and flexibility.

If you are 50 or older, you can add $7,500 in catch-up contributions annually, bringing the total limit to $31,000. Beyond that: maximize employer match regardless of income, open a Roth IRA ($7,000 + $1,000 catch-up), contribute to an HSA if eligible (triple-tax-advantaged), and delay retirement by even a few years (each year of delay can add 10%+ to your final balance via continued contributions plus compound growth on the existing balance).

Yes. When you leave a job, you have four options: leave the balance in the old plan (if over $7,000), roll it into your new employer's 401(k), roll it into an IRA (most flexible, usually the best choice), or cash it out (terrible due to taxes and 10% penalty if under 59 1/2). A rollover to an IRA gives you access to far more investment options and usually lower fees. Most custodians (Fidelity, Vanguard, Schwab) walk you through the rollover with no cost to you.