401(k) Retirement Calculator
Project your balance, compare Roth vs Traditional, and find out if you’re on track — in under 60 seconds.
| Component | Amount | % of Total |
|---|
*Future value lost = what the withdrawn amount would have grown to in 25 years at 7% annual return — the true long-term cost of an early withdrawal.
- 401(k) Loan: Borrow up to 50% of your balance ($50K max). You repay yourself — no penalty, no permanent loss.
- Hardship Withdrawal: Limited to immediate financial need. Tax owed but 10% penalty may be waived.
- HELOC or Personal Loan: If you have home equity, a HELOC may offer lower effective cost than a 401(k) withdrawal.
- Roth IRA Contributions: If you have a Roth IRA, you can withdraw your contributions (not earnings) penalty-free at any time.
If your contribution % is too high, you’ll hit the $24,500 IRS cap partway through the year. Once you hit the cap, your contributions stop — and so does your employer’s match. This could cost you hundreds to thousands in missed employer contributions.
How to Use This 401(k) Retirement Calculator
Our free 401(k) retirement calculator helps you project your balance at retirement using your actual salary, contribution rate, employer match, and expected investment returns. Unlike basic calculators, this tool also adjusts for inflation so you can see your future savings in today’s purchasing power — a crucial detail most people miss.
Step-by-Step Instructions
- Enter your current age and target retirement age. The gap between these determines how many years of compound growth you have.
- Enter your annual salary and current 401(k) balance. If you’re just starting out, use $0 for the balance.
- Set your contribution percentage. This is the % of your paycheck you contribute each pay period.
- Add your employer match. If your employer matches 100% up to 3% of salary, enter 3%.
- Set your expected return and inflation rate. A 7% nominal return and 2.9% inflation are historically reasonable defaults.
- Select Traditional or Roth 401(k) (or “Compare Both”) to see the after-tax impact of your choice.
- Click Calculate to see your full projection, including monthly retirement income, compound growth breakdown, and your on-track meter.
2026 IRS 401(k) Contribution Limits
The IRS adjusts 401(k) contribution limits annually based on inflation. For 2026, the limits are as follows. Important: If your contribution rate would cause you to hit this cap before December, your employer may stop matching for the rest of the year.
| Age Group | Employee Limit | Catch-Up | Total Limit (with Match) |
|---|---|---|---|
| Under 50 | $24,500 | — | $70,000 |
| Age 50–59 and 64+ | $24,500 | +$6,500 | $31,000 employee / $76,500 total |
| Age 60–63 (SECURE 2.0 Super Catch-Up) | $24,500 | +$11,250 | $35,750 employee / $81,250 total |
The SECURE 2.0 Act, signed in 2022 and taking effect for 2025–2026, introduced a new “super catch-up” provision for savers aged 60–63. If you’re in this window, you can contribute significantly more than any other age group — use it strategically.
Traditional 401(k) vs. Roth 401(k): Which Is Right for You?
The most important 401(k) decision most people never make consciously. The difference isn’t just about taxes — it’s about when you pay them and what rate you pay.
| Feature | Traditional 401(k) | Roth 401(k) |
|---|---|---|
| Contributions | Pre-tax (lowers taxable income today) | After-tax (no current deduction) |
| Withdrawals in Retirement | Taxed as ordinary income | Tax-free |
| Best If… | Your tax rate is higher now than in retirement | Your tax rate is lower now than in retirement |
| Required Minimum Distributions | Yes — starting at age 73 | No RMDs during owner’s lifetime |
| Contribution Limits (2026) | Same: $24,500 / $31,000 / $35,750 | Same: $24,500 / $31,000 / $35,750 |
| Early Withdrawal | Taxes + 10% penalty on full amount | Taxes + penalty on earnings only (contributions free) |
Simple Rule of Thumb
- You’re in the 22% bracket or below now and expect to be in a higher bracket in retirement → Choose Roth
- You’re in the 32% bracket or above now and expect a lower tax rate in retirement → Choose Traditional
- You’re unsure? Split contributions between both — many employers allow this.
Am I On Track? 401(k) Savings Benchmarks by Age
Fidelity Investments’ widely used benchmarks suggest the following savings targets relative to your current salary. These assume you want to replace approximately 80% of your pre-retirement income.
| Age | Savings Target (× Salary) | Example: $75K Salary | Status if Below |
|---|---|---|---|
| 30 | 1× salary | $75,000 | Catching Up Needed |
| 35 | 2× salary | $150,000 | Increase Contributions |
| 40 | 3× salary | $225,000 | Maximize Match + Consider IRA |
| 45 | 4× salary | $300,000 | Activate Catch-Up at 50 |
| 50 | 6× salary | $450,000 | Use $31K Limit |
| 55 | 7× salary | $525,000 | On Track |
| 60 | 8× salary | $600,000 | Use $35,750 Super Catch-Up |
| 67 | 10× salary | $750,000 | Retirement Ready |
If you’re behind, don’t panic — even catching up from 45 to 65 can produce meaningful results. The key variables are how much you increase your contribution and whether you capture your full employer match.
How Employer Matching Works (And Why It’s Free Money)
Employer matching is one of the most powerful wealth-building tools available to American workers — yet a 2023 Vanguard study found that approximately 27% of employees leave some or all of their employer match on the table.
Common Match Formulas
- 100% match up to 3% of salary: If you earn $70K and contribute 3%, your employer adds $2,100/year
- 50% match up to 6% of salary: Contribute 6%, employer adds 3% → same $2,100 on $70K, but requires you to contribute 6%
- Dollar-for-dollar up to $3,000: Flat dollar cap regardless of salary
Vesting Schedules: What Happens If You Leave
Your own contributions are always 100% yours immediately. But employer match contributions are often subject to a vesting schedule — meaning you only own them after staying employed for a set period:
- Cliff Vesting: 0% owned until year 3, then 100% immediately (most common)
- Graded Vesting: 20% per year from years 2–6 (fully vested at year 6)
- Immediate Vesting: 100% yours from day one (rare, usually at larger employers)
If you’re considering a job change, check your vesting status first. Leaving before full vesting can cost you thousands in employer contributions that legally revert to the plan.
The Real Cost of Early 401(k) Withdrawal
Withdrawing from your 401(k) before age 59½ triggers two simultaneous costs: a 10% federal penalty plus ordinary income tax on the full amount. For someone in the 22% federal bracket with a 5% state tax, a $20,000 withdrawal nets only about $12,600 — a 37% loss before you account for the long-term growth you’ve permanently sacrificed.
Use the Early Withdrawal Calculator tab above to model your exact scenario.
What Happens to Your 401(k) When You Change Jobs?
You have four options when you leave an employer:
- Roll over to your new employer’s 401(k). Seamless; maintains tax-deferred status. Check the new plan’s investment options first.
- Roll over to a Traditional IRA. Usually the best option — gives you access to a wider range of investments and potentially lower fees.
- Leave it with your former employer. Legal if balance exceeds $5,000. But you lose the ability to make new contributions and may forget about it.
- Cash out. Almost always the worst option. Taxes + penalty + permanent loss of compound growth.
If you do a rollover, use a direct rollover (trustee-to-trustee transfer) to avoid a mandatory 20% withholding that applies to indirect rollovers.
What This 401(k) Retirement Calculator Assumes — And Why
Transparency matters in financial calculators. Here’s exactly what our default values are based on:
- 7% expected annual return: Based on the historical S&P 500 average (~10%) minus a 3% inflation-adjusted baseline. A diversified portfolio over 30+ years has historically produced roughly this real return.
- 2.9% inflation rate: Based on the 10-year rolling average U.S. CPI rate as reported by the BLS (Bureau of Labor Statistics).
- 2% salary growth: Aligned with long-run nominal wage growth from the Employment Cost Index.
- Life expectancy of 85: The SSA’s current life expectancy estimate for average Americans reaching age 65.
Every one of these can be adjusted in the calculator above. A conservative investor might use 5% return; an aggressive one might use 9%. The goal is to create a range of scenarios, not rely on any single projection.