About the 401(k) Calculator

A 401(k) is one of the most powerful tools available for retirement savings in the U.S. This calculator is designed to help you project the future value of your 401(k) account, showing you how your contributions, employer match, and investment returns can grow over time. Understanding this projection is the first step toward securing a comfortable financial future.

Key Factors in Your 401(k)'s Growth

• Your Contributions: The percentage of your salary you contribute each year is the foundation of your savings.
• Employer Match: This is a crucial benefit where your employer contributes to your account, often matching a portion of what you save. It's essentially free money and can dramatically boost your balance.
• Investment Returns: The average annual return on your investments will significantly impact how quickly your savings grow through the power of compounding.
• Time: The number of years until you retire is your biggest asset. The earlier you start, the more time your investments have to compound and grow.

Frequently Asked Questions (FAQ)

How much should I contribute to my 401(k)?

Most financial advisors recommend contributing at least enough to get the full employer match. After that, a common goal is to save 10-15% of your pre-tax income for retirement. The right amount for you depends on your age, income, and retirement goals.

What is an "employer match"?

An employer match is a program where your employer contributes to your 401(k) alongside you. A common example is "50% match on the first 6% you contribute." This means if you contribute 6% of your salary, your employer will add an extra 3% of your salary to your account for free.

What if I leave my job?

When you leave an employer, you always keep 100% of your own contributions. However, you may need to work for a certain number of years (a "vesting period") to be entitled to 100% of the money your employer contributed.