401k Retirement Planner (USA)
Optimize your employer match and retirement savings.
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Employer Match
The IRS limit for 401k employee contributions in 2024 is $23,000 ($30,500 if age 50+). This calculator assumes constant growth and salary.
What is a 401k Plan?
A 401k is a tax-advantaged retirement savings account offered by many employers in the United States. It allows employees to save and invest a portion of their paycheck before taxes are taken out, significantly reducing their current tax bill while building wealth for the future.
The Magic of Employer Matching
Many companies offer a "match" — essentially free money for your retirement. If your employer matches 50% of your contributions up to 6% of your salary, you should aim to contribute at least that much. Our calculator helps you visualize how this match accelerates your growth.
Estimating Annual Returns
While the stock market has historically returned around 7-10% annually (inflation-adjusted), your personal 401k returns will depend on your chosen asset allocation. Use our tool to test different growth scenarios to see how conservative vs. aggressive strategies change your results.
USA 401k FAQ
What is the 401k contribution limit for 2026?
The IRS typically adjusts limits for inflation. For 2026, the standard employee contribution limit is expected to be higher than previous years, allowing you to shield more income from taxes.
When can I withdraw from my 401k?
Generally, you can start taking penalty-free distributions after age 59½. If you withdraw earlier, you may face a 10% penalty plus income taxes, unless you qualify for an exception.
Traditional vs. Roth 401k?
Traditional 401k contributions are pre-tax (pay tax later), while Roth 401k contributions are after-tax (pay tax now, withdraw tax-free later). The best choice depends on your current vs. future tax bracket.