401(k) Calculator

You choose a percentage of each paycheck to contribute, and your employer sends it to your account. You pick from the plan's investments, often including target-date and index funds. Traditional contributions lower your taxable income now, and withdrawals are taxed later. Your employer may add a match. Growth isn't taxed while it stays in the account, which lets the whole balance compound.

For 2026, you can contribute up to $24,500 of your own pay. If you're 50 or older, you can add an $8,000 catch-up, or $11,250 if you're 60 through 63. The total from you and your employer can't exceed $72,000 before catch-ups. The IRS publishes the limits each fall, and we update this calculator when they change.

A common guideline is to save about 15% of your income for retirement, including any employer match. If you can't reach that yet, try to contribute at least enough to get the full match. Then raise your rate each year or whenever you get a raise. The table above shows what different rates could be worth by age 65.

Your employer adds money based on what you contribute. A common formula is 50 cents per dollar on the first 6% of your pay. On a $75,000 salary, contributing 6% ($4,500) would bring a $2,250 match. Contribute less, and you get less. Check your plan's summary for the formula, since some plans match dollar for dollar, and others don't match at all.

Many plans match somewhere between 3% and 6% of pay, so a match at the upper end, or one that's dollar for dollar, is generous. Vesting matters as much as the formula. A big match that takes six years to vest is worth less if you might leave sooner. Whatever the match is, it's usually worth capturing it in full before saving elsewhere.

Your own contributions are always 100% yours. Vesting is when your employer's contributions become fully yours. Some plans vest immediately, while others use a schedule. A graded schedule might vest 20% a year over several years, and a cliff schedule gives you nothing until a set date. If you leave before you're fully vested, you forfeit the unvested portion, so check your plan's dates before changing jobs.

Fidelity's guideline for total retirement savings is 1x your salary by 30, 3x by 40 and 6x by 50. So on a $75,000 salary, that's about $75,000, $225,000 and $450,000 across all accounts, not just your 401(k). Many people fall short of these targets. Use the calculator to see where your current path leads, and how much a higher rate would help.

Many long-term plans assume around 6% to 7% a year before inflation for a stock-heavy mix, and less for a conservative one. Actual returns swing widely from year to year and depend on your investments and fees. Rather than chasing a number, check that your fund mix suits your age and that your fees are low. Test several rates above.

You generally have four choices: leave it in the old plan if allowed, roll it into your new employer's plan, roll it into an IRA or cash it out. Cashing out usually triggers income tax and a 10% penalty if you're under 59½. A direct rollover avoids that. Very small balances can be moved out automatically by the plan, so don't ignore the paperwork.

Many plans let you borrow from your own balance, usually up to 50% of the vested amount or $50,000, whichever is less. You repay yourself with interest, usually through payroll, within five years. The risks are missed growth while the money is out, and if you leave your job, a short deadline to repay before it's treated as a taxable withdrawal. Your plan's rules decide what's allowed.

You can generally withdraw without the 10% penalty from age 59½, or from 55 if you leave that employer in or after the year you turn 55. Traditional withdrawals are taxed as income. Required minimum distributions generally start at age 73 for traditional accounts. Roth 401(k)s no longer have them during your lifetime. You choose how much to take beyond that, and 4% a year is a common starting point.

A 401(k) comes through your employer, has higher limits and may include a match. A Roth IRA is one you open yourself, uses after-tax money, has lower limits and an income cap, and offers a wider choice of investments. Many people do both: contribute enough to get the match, then fund a Roth IRA. Compare with our Roth IRA calculator.

Compare your tax rate now with the one you expect in retirement. If it's higher now, traditional usually wins, and if it's lower now, Roth usually wins. In the example, 22% now and 12% later favors traditional by $100,300. Many people split contributions between both to hedge, since no one knows future tax rates. This isn't tax advice, so check your situation with a professional.