Home / Finance / 401k Calculator
401(k) Calculator
Calculate your 401(k) retirement savings with employer matching.
Your Information
The Employer Match is Literally Free Money
If your company matches 6%, and you're only contributing 3%, you're rejecting a 50% instant return on your money. Nobody turns down a 50% return. Except apparently you.
💡 Real Talk from David Chen, CFA
ALWAYS contribute at least enough to get the full employer match. If you're not doing this, you're literally throwing away thousands per year. I don't care if you have credit card debt—get the match first, then tackle the debt.
Quick Math
Scenario: $60k salary, 6% match
- You contribute: 6% = $3,600/year
- Employer match: 6% = $3,600/year FREE
- Total going to your 401k: $7,200/year
- After 30 years at 7%: ~$680k
- If you skip the match: ~$340k
- Leaving $340k on the table
Still not convinced? There's no convincing you then.
⚠️ Common Mistake: "I Can't Afford It"
"I can't afford to contribute 6%!" You can't afford NOT to. If your budget is that tight, the problem isn't the 401k—it's your spending or your income. Cut Netflix before you skip free retirement money.
Traditional vs Roth 401k
Traditional 401k: Money goes in pre-tax (lowers your taxable income now), taxed when you withdraw in retirement.
Roth 401k: Money goes in after-tax (no tax break now), grows tax-free, withdraw tax-free in retirement.
Which one?
- Young + low tax bracket now? → Roth (pay taxes at low rate now)
- Older + high income? → Traditional (defer taxes to retirement)
- Unsure? → Split 50/50 and hedge your bets
Contribution Limits (2025)
- Under 50: $23,000/year max
- 50+: $30,500/year (includes$7,500 catch-up)
- Employer match doesn't count toward your limit
Maxing it out? Congrats, you're in the top 10% of savers.
When Can You Touch It?
The bad news: Withdraw before age 59½ = 10% penalty + taxes. Ouch.
Exceptions:
- First-time home purchase ($10k max, still taxed)
- Medical emergency (still taxed, but no penalty)
- Hardship withdrawal (limited situations)
Bottom line: Don't touch it unless you absolutely have to. That's the whole point.
What If I Change Jobs?
You have 3 options:
- Roll it into new employer's 401k - Keep it growing
- Roll it into an IRA - More investment options
- Cash it out - DON'T DO THIS (penalties + taxes = lose 30-40%)
Seriously, don't cash it out. I've seen people blow $50k 401ks on stupid stuff, then get hit with $15k tax bills.
Investment Options Inside
Most 401ks offer target-date funds. Pick the year closest to when you retire (e.g., Target Date 2060 if you retire around 2060). It automatically adjusts risk as you age.
Don't pick individual stocks in your 401k. You're not a day trader. Set it to a target-date fund and forget about it.
Reviewed by David Chen, CFA
Chartered Financial Analyst
David makes sure you don't leave free money on the table.
Frequently Asked Questions
Should I max out my 401k?
At minimum, contribute enough for the full employer match—that's free money. If you can max it ($23k in 2025, $30.5k if 50+), you're in the top 10% of savers. Most people should prioritize match → emergency fund → max 401k.
Traditional or Roth 401k?
Young + low tax bracket? Roth (pay taxes now at low rate). Older + high income? Traditional (defer taxes). Unsure? Split 50/50. The employer match always goes into Traditional regardless of your choice.
What happens to my 401k if I quit?
You have 3 options: roll into new employer's 401k, roll into an IRA (more investment options), or cash out (DON'T—you'll lose 30-40% to taxes/penalties). The money is yours, you just need to move it wisely.