Free 401(k) Retirement Planner

Project your 401(k) balance at retirement. Accounts for employee contributions, employer match up to your salary limit, annual salary growth, investment returns, and IRS contribution caps including the age-50 catch-up.

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e.g. 50% means employer adds 50¢ for every $1 you put in.

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Employer typically matches up to 3-6% of your salary.

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Enter your details on the left, then press Calculate.

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What is this calculator for?

You're 38, you've contributed 6% to your 401(k) for the last 10 years, and your balance is $134,000. Your boss just announced the company is increasing the match from 4% to 5%, and you're wondering: if you bump your own contribution from 6% to 10% now, what does that mean for your retirement at 65? The 401(k) planner projects your retirement balance under various contribution and match scenarios, factoring in employer match, IRS contribution limits, and reasonable investment return assumptions.

2026 IRS contribution limits (annually inflation-indexed): $24,500 employee elective deferral. $8,000 catch-up contribution for age 50+. $77,500 total annual contribution limit (employee + employer + after-tax). Most workers contribute well below these limits — the median 401(k) balance for workers in their 50s is around $200K, vs the ~$1M+ needed for typical retirement. The plan: contribute enough to capture full employer match (the #1 priority — it's free money), then ramp up beyond match as income grows.

This calculator models compound growth over decades. Inputs: current balance, contribution rate, employer match formula, expected investment return (default 7% real), years until retirement. Output: projected balance at retirement plus year-by-year breakdown.

How to use this calculator

Enter your current age and target retirement age. Standard retirement assumption: 65. Early retirement (FIRE movement targets): 50-55. Working longer than 65 dramatically extends compounding time and reduces required savings rate.

Enter your current 401(k) balance, annual salary, and employee contribution rate (percent of salary). The IRS limit ($24,500 in 2026) caps absolute dollars; high earners hit the cap before reaching their percentage target. Catch-up contributions ($8,000 in 2026) become available at age 50.

Enter your employer match formula. Common formats: "50% match up to 6% of salary" (employer matches half of your contributions up to 6% of pay). "100% match up to 4%" (full dollar-for-dollar up to 4%). "Safe Harbor: 3% non-elective" (employer contributes 3% of your salary regardless of your contribution). Always contribute at least to the full match — anything less leaves money on the table.

Set your expected investment return. Default 7% nominal is reasonable for diversified stock-heavy portfolios over multi-decade horizons (historic S&P 500 has been ~10% nominal, 7% real after inflation). More conservative bond-heavy portfolios: 4-5% nominal. The calculator can model real or nominal; for retirement planning, real returns (inflation-adjusted) produce results in today's purchasing power.

Indicate salary growth rate: typical wage growth runs 2-3% nominal annually. Career advancement can add 5-10% in specific years.

Understanding your results

The calculator returns projected retirement balance at your target retirement age, year-by-year accumulation, total employee contributions, total employer match captured, and total investment growth.

How to read it. A 35-year-old earning $85K, contributing 10%, with 4% employer match, 7% real return, retiring at 65: projected balance $1.45M in today's dollars. Employee contributions: $310K. Employer match: $124K. Investment growth: $1.02M (70% of final balance is market growth, 30% is the contributions). The math is dramatic: $13,500/year of out-of-pocket contributions becomes a $1.45M balance over 30 years.

The employer-match-is-free-money insight. A 4% employer match on $85K salary = $3,400/year. Failing to capture full match (e.g., contributing only 2% and getting only $1,700 match) costs $1,700/year — over 30 years at 7% real, that's $172K of lost retirement balance. Match capture is the single most important 401(k) decision; the actual contribution rate beyond match is the secondary decision.

The contribution-rate decision. After capturing match, the relevant question is "how much more can I afford to contribute?" Common heuristics: 15% total of income (employee + employer combined) for typical retirement timeline. 20%+ for aggressive savers or those starting late. Use the calculator to find the contribution rate that produces an adequate retirement balance — typically $1-2M depending on lifestyle and other income sources (Social Security, pension, real estate).

The Roth-versus-traditional question. Traditional 401(k): contribute pre-tax (saves current tax), withdrawals taxed in retirement. Roth 401(k): contribute post-tax (no current tax savings), withdrawals tax-free in retirement. Decision factor: tax rate now vs in retirement. If your tax rate will be HIGHER in retirement (rare but possible for high-earning savers): Roth wins. If LOWER: traditional wins. Most workers' rates drop in retirement, so traditional wins; high earners increasingly do "Roth conversions" later in career to manage future RMD taxes. Many plans now allow split contributions (some traditional + some Roth) — common allocation is 70-80% traditional for high earners, 50/50 for middle earners.

A worked example

Lisa, 28, just landed a $72K job at a company offering "Safe Harbor 4% match + 50% match on next 2% of contributions." Translation: she gets 4% of $72K = $2,880 automatic if she contributes anything (or even nothing — Safe Harbor is non-elective), plus 1% additional ($720) if she contributes 2%. Total possible employer contribution: $3,600/year if she contributes at least 2%.

Scenario A: Lisa contributes 2% of salary ($1,440), captures full match ($3,600). Total annual: $5,040 going in. Salary growth 3%/year, return 7% real, retirement at 65. Projected balance at 65: $812K. Decent but tight for retirement living.

Scenario B: Lisa contributes 10% ($7,200), match still $3,600 (max). Total $10,800/year. Same growth assumptions. Projected balance at 65: $1.78M. Comfortable retirement on standard 4% withdrawal rate ($71K/year withdrawals).

Scenario C: Lisa starts at 10% and increases by 1% per year as salary grows, until she hits IRS cap. By age 40, contributing 18% of $108K = $19,440 (still under IRS cap). By age 50, at IRS cap + catch-up. Projected balance at 65: $2.7M.

Scenario D: same Lisa but waits until age 38 (just like 50% of US workers) to start contributing at 10%. Same career, same returns, just 10 years of delay. Projected balance at 65: $920K. Less than HALF of Scenario B despite same contribution rate, just because of 10 fewer years of compounding. The 10 years cost her ~$860K of final retirement balance.

The instructive comparison: A vs B differ only in employee contribution rate (2% vs 10%). The difference in retirement balance ($970K) is 5.6× the cumulative extra contributions ($5,760/year × 37 years = $213K). The 5.6× multiplier is what 37 years of compounding does to extra dollars contributed early in career. There is no path to building serious wealth that doesn't go through 'contribute early and consistently.'

Related resources

For underlying compound-growth math, see Compound Interest Calculator. For inflation-adjusted projection context, the Inflation Calculator. For Social Security projection that combines with 401(k) for total retirement income, the Social Security Estimator. For tax-advantaged healthcare savings, the HSA & FSA Maximizer. The IRS retirement plans page covers contribution limits, distribution rules, and the Saver's Credit available to lower-income retirement savers.

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Frequently asked questions

What is an employer 401(k) match?

Employer match is free money — extra contributions your employer adds based on what you contribute. The most common formulas are 'dollar-for-dollar up to 3%' (1:1 match) or '50¢ on the dollar up to 6%' (Safe Harbor). To capture the full match, contribute at least enough to hit the cap; not doing so leaves money on the table. The IRS counts employer match toward the 415(c) total annual additions limit ($70,000 in 2025) but NOT toward your personal $23,500 elective deferral cap.

Should I max out my 401(k)?

Conventional wisdom: contribute at least enough to get the full employer match (always — it's a 50-100% instant return). Beyond that, max the 401(k) before taxable brokerage if you're in a 22%+ federal tax bracket and your plan has reasonable fees (under 0.5% expense ratio). At lower brackets or with high-fee plans (>1%), a Roth IRA or HSA may be a better next dollar. The 401(k) maximum is $23,500 in 2025 (plus $7,500 catch-up if 50+).

What is the 4% rule?

The 4% rule is a retirement-spending heuristic: withdraw 4% of your starting portfolio in year one of retirement, then adjust that dollar amount for inflation each subsequent year. Historical backtests through 2024 suggest this strategy has near-100% survival rate over 30 years for a 60/40 stock/bond portfolio. The 4% figure isn't sacred — recent research (Bengen 2020) raises it to 4.5-5% for some scenarios; Wade Pfau's safe-withdrawal-rate work lowers it to 3.0-3.5% in low-yield environments. Use it as a starting reference, not a rigid rule.

Roth vs Traditional 401(k) — which is better?

Traditional 401(k) gets a tax deduction now, you pay tax on withdrawals in retirement. Roth 401(k) is the reverse — no deduction now, tax-free withdrawals later. Choose Traditional if you expect a lower tax bracket in retirement (typical for high earners); choose Roth if you expect a higher or equal bracket (typical for young workers, doctors-in-training, anyone in a low bracket today). Employer match always goes into Traditional regardless of which you pick. Many savers split — half each — as a hedge against future tax-rate uncertainty.

How much should I contribute to my 401(k)?

Minimum: enough to capture full employer match (typically 4-6% of salary). Standard target: 15% of gross income (employee + employer combined). Aggressive: max out at IRS limit ($24,500 in 2026). For most people earning $60-150K, 10-15% employee contribution captures full match and produces $1-2M retirement balances over 30+ years at typical returns. People starting later in life or earning above $200K typically need to max out to reach retirement goals. People in tight cash-flow positions: at minimum, capture match — anything less leaves money on the table.

Should I do Roth or traditional 401(k)?

Tax-rate arbitrage. If your current marginal rate is HIGHER than expected retirement tax rate: traditional pre-tax saves more (deduct now at higher rate, pay later at lower rate). If LOWER: Roth saves more (pay tax now at low rate, withdraw tax-free at high rate). Most middle-and-high-income workers in current law: traditional wins because retirement income is typically lower than working income. Exceptions: very young workers in 12-22% brackets (Roth often wins, more upside potential); workers who expect rising tax rates due to future legislation. Many advisors recommend 'hedging' by splitting contributions 50-70% traditional / 30-50% Roth, accepting that you don't know future tax law.

What's the difference between vesting and contributing?

Your contributions are always 100% vested — you can take them with you immediately when you leave the company. Employer contributions may vest gradually: 'cliff vesting' (0% until a milestone like 3 years, then 100%) or 'graded vesting' (e.g., 20% per year for 5 years). If you leave before vesting, you forfeit the unvested portion. Common policy: employer contributions vest over 4-6 years; you have to stay that long to keep all the employer money. Always check vesting schedule before changing jobs — sometimes staying an extra year captures $20K+ of additional vested employer contributions.

Should I roll over my old 401(k) when I change jobs?

Generally yes, into either your new employer's 401(k) or a rollover IRA. Reasons: (1) Easier management — fewer accounts to track. (2) Better investment options — many old 401(k) plans have limited funds; IRAs have unlimited options. (3) Lower fees in many cases. The exception: if your old 401(k) has exceptionally low-cost index funds (Vanguard Institutional 500 at 0.015% expense ratio, for example), it might beat your new plan's options. Always compare expense ratios and fund options before rolling. Avoid 'cashing out' an old 401(k) — early withdrawal triggers 10% penalty plus income tax, typically costing 30-40% of the balance.

When can I withdraw from my 401(k)?

Penalty-free starting at age 59½, or age 55 if you separate from employment in the year you turn 55 or later (the 'rule of 55'). Required Minimum Distributions (RMDs) begin at age 73 (raised from 72 in 2023). Early withdrawals before 59½ incur 10% penalty PLUS ordinary income tax — typically 30-40% combined hit. Exceptions to the 10% penalty: substantially equal periodic payments (SEPP), disability, first-time home purchase (up to $10K), unreimbursed medical expenses above 7.5% AGI, qualified domestic relations order in divorce. 401(k) loans (not withdrawals) avoid the penalty but carry their own risks — if you leave the company, the loan typically becomes due within 60-90 days or it's treated as a withdrawal with penalty.

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