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401(k) Calculator

Calculate how your 401(k) will grow over time. See the power of compound interest and employer matching on your retirement savings.

401(k) Growth Calculator

2026 limit: $23,000

Free money! Don't leave this on the table.

401(k) at Retirement

$3,713,277

Total Contributed

$855,000

Investment Growth

$2,858,277

💡 Pro tip: Your employer match of $3,000/year adds $105,000 to your contributions over 35 years!

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How to Maximize Your 401(k)

Your 401(k) is one of the most powerful retirement savings tools available. With tax-deferred growth and employer matching, it can grow to become your largest retirement asset.

2026 401(k) Contribution Limits

AgeEmployee LimitWith Catch-UpTotal with Employer
Under 50$23,000N/A$69,000
50 and older$23,000$7,500$76,500

401(k) Strategies for Maximum Growth:

  • Always get the full employer match - It's free money with 100% return
  • Increase contributions annually - Boost by 1% each year
  • Consider Roth 401(k) - Tax-free growth if you expect higher taxes later
  • Rebalance periodically - Keep your asset allocation on target
  • Avoid early withdrawals - 10% penalty plus taxes before 59½

401(k) vs IRA: Which is Better?

Both are excellent retirement vehicles, but they have different limits and rules:

  • 401(k): Higher limits ($23,000), employer match, limited investment options
  • IRA: Lower limits ($7,000), more investment choices, income limits for Roth

Best strategy: Contribute enough to your 401(k) to get the full employer match, then max out an IRA, then return to max your 401(k).

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Frequently Asked Questions

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

At minimum, contribute enough to get your full employer match — that's free money with an instant 50-100% return. The 2026 contribution limit is $23,500 ($31,000 if you're 50+). Financial experts typically recommend saving 15-20% of your gross income for retirement across all accounts. If you can't hit that immediately, start with your match and increase by 1% each year.

What is a 401(k) employer match and how does it work?

An employer match means your company contributes money to your 401(k) based on your contributions. A common formula is "50% match up to 6% of salary." If you earn $80,000 and contribute 6% ($4,800), your employer adds $2,400. That's a 50% instant return before any market gains. Some employers offer dollar-for-dollar matching or tiered matches. Always check your plan's vesting schedule — some matches require 3-5 years before you fully own them.

Should I choose a Traditional or Roth 401(k)?

Traditional 401(k): contributions reduce taxable income now, but you pay taxes on withdrawals in retirement. Roth 401(k): you pay taxes now, but withdrawals are 100% tax-free. Choose Traditional if you're in a high tax bracket today and expect to be in a lower one in retirement. Choose Roth if you're early in your career with lower income, or if you believe tax rates will rise. Many investors split contributions between both for tax diversification.

What happens to my 401(k) when I change jobs?

You have four options: (1) Roll it into your new employer's 401(k) — keeps everything consolidated. (2) Roll it into a Traditional IRA — gives you more investment choices and often lower fees. (3) Leave it with your old employer — fine if the plan has good funds. (4) Cash it out — avoid this! You'll pay income tax plus a 10% penalty if under 59½, potentially losing 30-40% of your balance. Rollovers are tax-free if done correctly (direct trustee-to-trustee transfer).

Can I withdraw from my 401(k) early?

Taking money out before age 59½ generally triggers a 10% early withdrawal penalty plus income taxes. Exceptions include: the Rule of 55 (leave your job at 55+ and withdraw penalty-free from that employer's plan), substantially equal periodic payments (72(t) distributions), qualified hardship withdrawals, and disability. 401(k) loans are another option — you borrow from yourself and repay with interest, but if you leave your job, the balance may become due immediately.

What are the best 401(k) investment options?

Target-date funds are the simplest choice — they automatically adjust your allocation as you age. For DIY investors, a classic approach is: 60-90% in a low-cost S&P 500 or total stock market index fund, 10-30% in an international index fund, and 0-20% in a bond index fund (increasing bonds as you near retirement). Avoid high-fee actively managed funds — a 1% fee difference can cost you $100,000+ over 30 years on a $500,000 portfolio.