Free online 401k calculator to estimate retirement savings, early withdrawal costs, and employer match optimization. Plan your retirement with detailed projections.
Enter your information on the left and click Calculate to see your personalized retirement projections
A 401k is a retirement savings plan sponsored by employers that allows employees to save and invest a portion of their paycheck before taxes are taken out. Named after subsection 401(k) in the Internal Revenue Code, it's one of the most popular retirement savings vehicles in the United States.
Important: Withdrawals before age 59½ typically incur a 10% penalty plus income tax, though some exceptions exist.
Your investments grow tax-free until withdrawal. Earnings on interest, dividends, and capital gains accumulate without immediate tax consequences, giving your money more power to compound over time.
Free money! Many employers match your contributions up to a certain percentage. A 50% match on 6% of salary means your employer adds 3% to your 401k - that's an instant 50% return on investment!
401k plans have much higher contribution limits than IRAs. For 2026: $24,500 for those under 50, $32,500 for 50+, and $35,750 for ages 60-63, allowing for significant retirement savings.
Contributions reduce your taxable income, lowering your total taxes owed. If you contribute $10,000 and are in the 22% tax bracket, you save $2,200 in taxes that year.
401k plans typically offer a limited selection of investment options chosen by your employer, unlike self-directed brokerage accounts where you can invest in individual stocks.
Withdrawals before age 59½ typically incur a 10% penalty plus income tax, making your 401k relatively illiquid. Some exceptions exist for hardship, disability, or separation from service after age 55.
A 401k is an employer-sponsored retirement savings plan that allows you to contribute pre-tax dollars from your paycheck. The money grows tax-deferred until you withdraw it in retirement, and many employers offer matching contributions.
At minimum, consider contributing enough to receive the full employer match available under your plan. General savings targets are not personal advice. For 2026, the employee deferral limit is $24,500 (under 50), $32,500 with the general age-50 catch-up, or $35,750 for ages 60-63 when the higher catch-up applies.
You have several options: (1) Leave it with your old employer, (2) Roll it over to your new employer's 401k, (3) Roll it into an IRA, or (4) Cash it out (not recommended due to taxes and penalties).
Yes, but withdrawals before age 59½ typically incur a 10% penalty plus income tax. Exceptions exist for hardship, disability, medical expenses, first-time home purchase, or separation from service after age 55.
Traditional 401k: Pre-tax contributions, taxed on withdrawal. Roth 401k: After-tax contributions, tax-free withdrawals in retirement. Traditional is better if you expect lower taxes in retirement; Roth is better if you expect higher taxes.
Required Minimum Distributions (RMDs) must begin at age 73 (72 if you reached 72 before Dec. 31, 2022). The penalty for not taking RMDs is 50% of the amount you should have withdrawn.
Common matching formulas: "50% match up to 6%" means if you contribute 6% of your salary, your employer adds 3%. "Dollar-for-dollar up to 3%" means they match 100% of your first 3% contributed.
Many plans allow loans of up to 50% of your vested balance or $50,000, whichever is less. You typically must repay within 5 years with interest. If you leave your job, the loan may become due immediately.
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Transparency & trust
The employer-match optimizer compares estimated employee contributions with IRS 2026 elective-deferral limits. Long-term growth projections use user-entered contribution and return assumptions and do not predict future statutory limits.
Reviewed by Jack Tao
Technical methodology reviewer
Full-stack developer with 10+ years of software engineering experience
This review checks implementation, formulas, units, edge cases, and alignment with the cited material. It does not represent independent medical or financial advice.
Important limitation
For educational information only. This estimate is not financial, investment, tax, legal, or lending advice.
Tax treatment, plan rules, employer matching, investment returns, and withdrawal penalties vary. Confirm decisions with your plan administrator or a qualified tax or financial professional.