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401(k) Calculator

Estimate your 401(k) balance at retirement, calculate early withdrawal costs, and optimize employer match contributions.

401(k) Worksheet
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Balance at retirement $1.67M
Your contributions$453,466
Employer match$68,020
Investment growth$1.11M
Monthly retirement income$9,188

Contributing 10% of salary with 50% employer match (up to 3% of salary) for 35 years at 6% return.

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How a 401(k) Works

A 401(k) is one of the most powerful tools for building retirement wealth. Contributions come from pre-tax income, reducing your current tax bill. Investments grow tax-deferred, and you pay taxes only when you withdraw in retirement.

Three Calculators in One

  • Growth Projection: Estimates your 401(k) balance at retirement based on contributions, employer match, salary growth, and investment returns. Includes a year-by-year breakdown.
  • Early Withdrawal: Shows exactly how much you lose to the 10% penalty and federal/state/local taxes when withdrawing before age 59½.
  • Maximize Match: Finds the minimum contribution percentage to capture your full employer match — so you never leave free money on the table.

2026 Contribution Limits

  • Employee limit: $24,500 per year
  • Catch-up (age 50+): Additional $8,000 ($32,500 total); ages 60-63 get $11,250 instead
  • Total limit (incl. employer): $72,000 for 2026 (was $70,000 in 2025)

Employer Match Explained

Common match formulas include:

  • Dollar-for-dollar up to 3%: You contribute 3%, employer adds 3%
  • 50 cents on the dollar up to 6%: You contribute 6%, employer adds 3%
  • Tiered match: 100% on first 3%, then 50% on next 2%

Always contribute at least enough to get the full match. It is an immediate 50-100% return on your money.

Early Withdrawal Penalties

Taking money out before 59½ triggers a 10% early withdrawal penalty plus regular income tax. A $10,000 withdrawal could cost $4,000+ in taxes and penalties.

Penalty exemptions include:

  • Total and permanent disability
  • Medical expenses exceeding 7.5% of AGI
  • Qualified domestic relations order (QDRO)
  • Substantially equal periodic payments (Rule 72t)
  • Separation from service at age 55+

Maximizing Your 401(k)

  • Get the full match: This is free money — prioritize it above all else
  • Increase contributions annually: Bump up 1% each year, especially after raises
  • Choose low-cost index funds: Expense ratios under 0.20% save thousands over decades
  • Avoid early withdrawals: The tax hit plus penalty plus lost compound growth is devastating
  • Consider Roth: If you are early in your career and in a low tax bracket, Roth contributions may save you more long-term

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Frequently Asked Questions

What are the 2026 401(k) contribution limits?

For 2026, the employee contribution limit is $24,500, up from $23,500 in 2025. If you are 50 or older, you can add an $8,000 catch-up contribution for a total of $32,500, and savers aged 60 to 63 get a higher $11,250 catch-up instead. Employer matching does not count toward the $24,500 employee limit, only toward the overall combined limit set each year by the IRS.

How does a 401(k) employer match work?

Employers may match a percentage of your contributions up to a limit. For example, a 50 percent match up to 3 percent of salary means that if you earn $75,000 and contribute at least 3 percent ($2,250), the employer adds $1,125, which is 50 percent of $2,250. Contributing less than the match cap leaves part of that money unclaimed.

What is the 401(k) early withdrawal penalty?

Withdrawals before age 59 and a half typically carry a 10 percent early withdrawal penalty on top of regular income tax. On a $10,000 early withdrawal, the penalty alone is $1,000 before any income tax. Exceptions include disability, certain medical expenses and substantially equal periodic payments under rule 72(t).

What is the difference between a traditional and a Roth 401(k)?

Traditional 401(k) contributions are pre-tax: they reduce taxable income now and are taxed on withdrawal. Roth 401(k) contributions are after-tax: there is no tax break now, but qualified withdrawals in retirement are tax-free. A Roth usually suits savers who expect a higher tax rate in retirement than today.

What happens to my 401(k) if I leave my job?

You can leave it with the former employer, roll it into an IRA or a new employer plan, or cash it out. Cashing out before 59 and a half triggers income tax plus the 10 percent penalty, so a direct rollover is usually the best option. Only vested employer contributions go with you; unvested amounts stay with the old plan.