Free 401(k) Calculator
Enter your details to project your 401(k) balance at retirement.
* Assumes 7% average annual return (historical stock market average), contributions stay a flat % of salary, and annual compounding. Does not account for salary growth, fees, or contribution limit caps. Not investment advice.
What Is a 401(k)?
A 401(k) is an employer-sponsored retirement savings plan in the US that lets employees contribute a portion of their pre-tax (or after-tax, for Roth 401(k)) salary into an investment account. Many employers also contribute matching funds, making it one of the most valuable employee benefits available.
Understanding Employer Match
Employer match formulas vary, but common structures include:
| Match Type | Example | What It Means |
|---|---|---|
| Dollar-for-dollar | 100% match up to 4% | Employer matches every dollar you contribute, up to 4% of salary |
| Partial match | 50% match up to 6% | Employer contributes 50 cents per dollar you contribute, up to 6% of salary (max employer contribution = 3%) |
| Tiered match | 100% on first 3%, 50% on next 2% | Different match rates apply to different contribution bands |
2025 Contribution Limits
| Limit Type | 2025 Amount |
|---|---|
| Employee contribution limit (under 50) | $23,500 |
| Catch-up contribution (age 50+) | +$7,500 ($31,000 total) |
| Catch-up contribution (age 60-63, SECURE 2.0) | +$11,250 ($34,750 total) |
| Combined employee + employer limit | $70,000 |
Frequently Asked Questions
How much should I contribute to my 401(k)?
At minimum, contribute enough to capture your full employer match — that's an immediate 50–100% return on that portion. Beyond that, financial advisors commonly recommend saving 10–15% of your salary (including employer match) for retirement.
What is a good employer 401(k) match?
A 100% match up to 4–6% of salary is considered a strong employer match. The average US employer match is around 4.5% of salary, according to Vanguard's How America Saves report.
What is the 401(k) contribution limit for 2025?
For 2025, employees under 50 can contribute up to $23,500. Those 50+ can contribute an additional $7,500 catch-up ($31,000 total), and those aged 60-63 get an enhanced catch-up of $11,250 under SECURE 2.0 ($34,750 total).
What happens to my 401(k) if I leave my job?
You can typically roll over your 401(k) into your new employer's plan or an IRA without tax penalty, leave it with your former employer (if the balance meets minimum requirements), or cash it out (triggering taxes and a 10% early withdrawal penalty if under age 59½).
Is a 401(k) match immediately vested?
Not always. While your own contributions are always 100% vested immediately, employer match contributions may be subject to a vesting schedule (e.g., 20% per year over 5 years) — meaning you forfeit unvested employer contributions if you leave before the vesting period completes.
