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401k Calculator

Calculate your 401k growth, employer matching benefits, and tax savings. Optimize your contributions to maximize your retirement savings and employer match.

401k Details

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2024 limit: $23,000 (under 50), $30,500 (50+)

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Example: 50% match up to 6% means employer contributes 3% if you contribute 6%+

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Historical market average is ~10%, conservative estimate 6-8%

401k Projection

$1,247,891
Total at Retirement
$336,000
Your Contributions
$168,000
Employer Match
Years to Retirement: 35 years
Current Contribution: 8% ($6,000/year)
Employer Match: 3% ($2,250/year)
Expected Return: 7.0%
Salary Growth: 3.0%

Annual Tax Benefits

Tax Bracket (Est.): 22%
Annual Tax Savings: $1,320
Net Cost of Contribution: $4,680

Growth Breakdown

Current Balance 2%
Your Contributions 27%
Employer Match 13%
Investment Growth 58%

401k Contribution Strategies

Get Full Match

6%
Minimum to Contribute
Your Contribution: $4,500
Employer Match: $2,250
Total Annual: $6,750

Always contribute enough to get full employer match - it's free money!

Max Contribution

30.7%
% of Salary Needed
Your Contribution: $23,000
Employer Match: $2,250
Total Annual: $25,250

Maximum tax-advantaged savings for 2024

Current Plan

8%
Current Contribution
Your Contribution: $6,000
Employer Match: $2,250
Total Annual: $8,250

Your current contribution strategy

401k Basics & Tips

How 401k Works

  • • Pre-tax contributions reduce current income taxes
  • • Money grows tax-deferred until retirement
  • • Employer matching is additional free money
  • • Withdrawals in retirement are taxed as income
  • • Early withdrawals before 59½ incur 10% penalty

Contribution Limits (2024)

Employee (under 50): $23,000
Employee (50+): $30,500
Total (employee + match): $69,000
Total (50+): $76,500

Maximizing Your 401k

  • • Always get full employer match first
  • • Increase contributions with salary raises
  • • Use automatic annual increases
  • • Consider Roth 401k for tax diversification
  • • Review and rebalance investments annually

Investment Tips

  • • Diversify across asset classes
  • • Choose low-cost index funds when possible
  • • Consider target-date funds for simplicity
  • • Avoid frequent trading and market timing
  • • Rebalance periodically to maintain allocation

Important 401k Rules

Vesting Schedules

Vesting determines how much of your employer match you keep if you leave:

Immediate Vesting

You keep 100% of employer contributions immediately

Graded Vesting

Gradual vesting over 2-6 years (e.g., 20% per year)

Cliff Vesting

0% until a certain date, then 100% (typically 3 years)

Required Distributions

Age 59½

Can withdraw without 10% early withdrawal penalty (still pay income tax)

Age 73

Must start taking Required Minimum Distributions (RMDs)

Hardship Withdrawals

Limited situations allow early access with penalties

401k Loans

Borrow up to 50% of balance or $50,000 (must repay within 5 years)

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