401(k) Retirement Savings Calculator

A 401(k) is a tax-advantaged retirement savings plan offered by employers in the United States. Employees contribute a portion of their salary before taxes, and the money grows tax-deferred until withdrawal in retirement. Many employers also match a percentage of contributions, effectively giving you free money toward retirement.

Employer match means your company contributes money to your 401(k) based on how much you contribute. A common formula is 50% match up to 6% of your salary. For example, if you earn $60,000 and contribute 6% ($3,600), your employer adds $1,800. Always contribute at least enough to get the full match — it is a 50-100% instant return on your money.

Financial experts recommend saving at least 15% of your gross income for retirement, including employer match. Start with enough to get the full employer match, then increase by 1% each year until you reach 15-20%. The 2025 employee contribution limit is $23,500 (under age 50) or $31,000 (age 50+).

For 2025, the IRS limit for employee 401(k) contributions is $23,500 if you are under age 50. If you are 50 or older, you can make an additional catch-up contribution of $7,500, bringing the total to $31,000. The total contribution limit including employer match is $70,000 (or $77,500 for those 50+).