401(k) Retirement Calculator
Plan your retirement savings and optimize your 401(k) contributions with our comprehensive calculator. Includes employer matching and detailed projections.
Total 401(k) at Retirement
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Monthly Retirement Income
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Employer Match Total
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Understanding Your 401(k) Investment
Key Benefits of 401(k) Plans
- Tax Advantages: Contributions are tax-deferred, reducing your current taxable income
- Employer Matching: Many employers match a portion of your contributions - essentially free money
- Automatic Savings: Contributions are automatically deducted from your paycheck
- High Contribution Limits: $23,000 annual limit for 2024 ($30,500 for those 50 and older)
Maximizing Your 401(k) Returns
- Start Early: Take advantage of compound interest by contributing as early as possible
- Match Your Employer: Contribute at least enough to get your full employer match
- Diversify Investments: Spread your money across different asset classes
- Regular Reviews: Review and rebalance your portfolio annually
- Consider Fees: Pay attention to investment fees as they can impact long-term returns
Important Considerations for 401(k) Planning
Contribution Guidelines
The IRS sets annual contribution limits for 401(k) plans:
- 2024 contribution limit: $23,000
- Catch-up contribution (age 50+): Additional $7,500
- Combined employer/employee limit: $69,000
Withdrawal Rules
- Standard withdrawals: Available at age 59½ without penalty
- Early withdrawals: 10% penalty plus taxes on distributions before 59½
- Required Minimum Distributions (RMDs): Must begin at age 73
- Hardship withdrawals: Available in specific circumstances
Investment Strategies
- Age-based allocation: More aggressive when younger, more conservative near retirement
- Target-date funds: Automatically adjust risk based on retirement date
- Diversification: Mix of stocks, bonds, and other assets
- Regular rebalancing: Maintain desired asset allocation
Common 401(k) Mistakes to Avoid
🚫 Not Contributing Enough
Missing out on full employer match means leaving free money on the table.
⚠️ Poor Investment Choices
Not diversifying or choosing investments without understanding fees and risks.
❌ Early Withdrawals
Taking early withdrawals can significantly impact long-term growth.