401k Calculator | Retirement Savings & Early Withdrawal Calculator
Use our 401k calculator to estimate your retirement savings, calculate the cost of early withdrawals, or optimize your contributions to maximize employer matching.
401k Balance Calculator
Estimate your 401k balance at retirement based on your current savings, contributions, and investment returns.
Basic Information
Contribution Information
Investment Assumptions
Enter your information and click Calculate to see results.
What is a 401k?
A 401(k) is a tax-advantaged retirement savings plan offered by employers that allows employees to save and invest a portion of their paycheck before taxes are taken out. Taxes aren't paid until the money is withdrawn from the account.
Many employers offer matching contributions as part of their benefits package, effectively providing free money toward your retirement savings when you contribute to your 401(k) plan.
The 401k Growth Formula
The formula for calculating the future value of your 401k is:
- FV = Future Value of the 401k account
- P = Present Value (current balance)
- r = Rate of return (annual)
- n = Number of years until retirement
- C = Regular contribution amount
How to Use This Calculator
Our 401k calculator offers three different tools to help with your retirement planning:
- 401k Balance Calculator: Estimate your retirement savings based on your current balance, contributions, and employer match.
- Early Withdrawal Calculator: Calculate the taxes and penalties you might face if you withdraw from your 401k before retirement age.
- Employer Match Maximizer: Determine the optimal contribution percentage to maximize your employer's matching contributions.
- Enter your information in the appropriate calculator and click 'Calculate' to see your results.
Early Withdrawal Penalties
Withdrawing money from your 401(k) before age 59½ typically results in a 10% early withdrawal penalty in addition to regular income taxes.
This means that if you withdraw $10,000 early, you could lose $1,000 to penalties plus whatever you owe in federal, state, and local income taxes.
Exceptions to Early Withdrawal Penalties
- Total and permanent disability
- Medical expenses exceeding 7.5% of your adjusted gross income
- Court-ordered payments to a divorced spouse, child, or dependent
- Separation from service after age 55
Maximizing Employer Match
Many employers offer to match a percentage of your 401(k) contributions up to a certain limit of your salary. This is essentially free money for your retirement.
Not contributing enough to get the full employer match means leaving money on the table. Our Employer Match Maximizer helps you determine the optimal contribution percentage.
Strategies for Maximizing Employer Match
- Contribute at least enough to get the full employer match
- If your employer offers a tiered matching structure, understand the tiers to optimize your contributions
- Consider increasing your contribution percentage when you receive a raise
Frequently Asked Questions
What is the maximum 401(k) contribution limit?
For 2023, the maximum employee contribution limit is $22,500 for workers under age 50, and $30,000 for those 50 and older (including catch-up contributions).
Can I have both a 401(k) and an IRA?
Yes, you can contribute to both a 401(k) and an IRA in the same year, though income limits may affect the tax deductibility of traditional IRA contributions or eligibility for Roth IRA contributions.
What happens to my 401(k) if I change jobs?
You typically have several options: leave it with your former employer, roll it over to your new employer's plan, roll it over to an IRA, or cash it out (though this last option usually results in taxes and penalties).
When can I withdraw from my 401(k) without penalties?
You can withdraw from your 401(k) without penalties after age 59½, or if you meet certain exceptions such as disability or separation from service after age 55.
How should I invest my 401(k)?
Investment choices depend on your age, risk tolerance, and retirement timeline. Generally, younger investors can afford more risk (more stocks), while those closer to retirement might prefer more conservative investments (more bonds).