401k Calculator

At minimum, contribute enough to get your full employer match — that is free money with a 50-100% instant return. Beyond that, aim for 10-15% of your salary. The 2024 maximum employee contribution is $23,000 ($30,500 if age 50+).

An employer match means your company contributes money to your 401k based on your contributions. A common match is 50% of your contribution up to 6% of your salary. If you earn $100,000 and contribute 6% ($6,000), your employer adds $3,000.

Withdrawing before age 59 and a half typically incurs a 10% early withdrawal penalty plus income taxes on the amount withdrawn. Some exceptions exist: hardship withdrawals, substantially equal periodic payments, and certain medical expenses.

Traditional 401k contributions are pre-tax (reduce taxable income now, taxed at withdrawal). Roth 401k contributions are after-tax (no tax break now, but tax-free withdrawals in retirement). Choose Roth if you expect higher taxes in retirement; Traditional if you expect lower taxes.

Yes. In 2024, you can contribute up to $23,000 to a 401k and $7,000 to an IRA ($30,500 and $8,000 respectively if age 50+). However, the IRA tax deduction may be limited if you have a workplace 401k and your income exceeds certain thresholds.