401(k) Calculator
Project your 401(k) or 403(b) balance at retirement. Includes 2026 IRS contribution limits, employer match calculations, catch-up contributions, salary growth, tax savings (Traditional vs Roth), and a complete year-by-year growth table.
401(k) Rules, Limits & Math
2025 IRS 401(k) Contribution Limits
| Limit Type | 2025 | 2024 | Change |
|---|---|---|---|
| Employee elective deferral (under 50) | $23,500 | $23,000 | +$500 |
| Catch-up contribution (age 50–59 & 64+) | $7,500 | $7,500 | No change |
| Catch-up contribution (age 60–63) SECURE 2.0 | $11,250 | $7,500 | +$3,750 |
| Total employee + employer (under 50) | $70,000 | $69,000 | +$1,000 |
| Total employee + employer (50+) | $77,500 | $76,500 | +$1,000 |
| Compensation limit | $350,000 | $345,000 | +$5,000 |
Traditional vs Roth 401(k) Comparison
| Feature | Traditional 401(k) | Roth 401(k) |
|---|---|---|
| Tax on contributions | Pre-tax (reduces taxable income now) | After-tax (no deduction) |
| Tax on growth | Tax-deferred | Tax-free |
| Tax on withdrawals | Ordinary income tax | Tax-free (if rules met) |
| Best for | High income now, lower in retirement | Lower income now, higher in retirement |
| Required Minimum Distributions | Age 73 (SECURE 2.0) | None (if rolled to Roth IRA) |
| Contribution limit (2025) | $23,500 | $23,500 (same limit) |
Common Employer Match Structures (2025)
| Company / Type | Match Formula | Effective Match % of Salary |
|---|---|---|
| Full match (common) | 100% up to 4% of salary | 4% |
| Partial match (common) | 50% up to 6% of salary | 3% |
| Generous match | 100% up to 6% of salary | 6% |
| Tiered (e.g. Amazon) | 50% up to 4%, then 100% on next 2% | 4% |
| No match | $0 | 0% |
| Industry avg (2025 survey) | ~4.7% of salary | ~4.7% |
Source: Vanguard "How America Saves" 2024; SHRM benefits survey 2024.
Value of Full Employer Match — Don’t Leave Free Money on the Table
Example: $80,000 salary, 100% match up to 4%:
| Your Contribution | Employer Match | Total Annual | 30 Years at 7% |
|---|---|---|---|
| 0% ($0) | $0 | $0 | $0 |
| 2% ($1,600) | $1,600 | $3,200 | $305,244 |
| 4% ($3,200) ? full match | $3,200 | $6,400 | $610,487 |
| 6% ($4,800) ? over match cap | $3,200 | $8,000 | $763,109 |
| 10% ($8,000) | $3,200 | $11,200 | $1,068,353 |
💡 Never contribute less than the match cap it’s an instant 50–100% return on your money.
Early Withdrawal Penalties (Before Age 59½)
Withdrawing from a Traditional 401(k) before 59½ incurs:
- 10% early withdrawal penalty on the amount withdrawn
- Ordinary income tax on the full withdrawal amount
- Total effective cost can be 30–45%+ of the withdrawal
Exceptions: age 55 rule, SEPP (72(t) distributions), disability, death, qualified domestic relations order (QDRO), certain medical expenses.
References
- IRS — Retirement Topics: 401(k) and Profit-Sharing Plan Contribution Limits (Rev. Proc. 2024-40).
- IRS — SECURE 2.0 Act of 2022, Division T of the Consolidated Appropriations Act, 2023.
- Department of Labor (DOL) — Private Pension Plan Bulletin, 401(k) Plan Statistics.
- Vanguard — "How America Saves 2024" employer match survey data.
- SHRM — 2024 Employee Benefits Survey (employer match structures).
