401k Retirement Savings Calculator 2026
Planning for retirement — see how your contributions and employer match add up.
Project your 401k balance at retirement. Enter your salary, contribution percentage, employer match, and years to retirement. Shows how your balance grows with compound interest, tax savings from pre-tax contributions, and the cost of leaving employer matching behind.
Projections assume consistent returns. Actual returns vary. Consult a financial advisor.
How pre-tax 401k contributions grow to retirement
The triple advantage
Contribution limits, employer-match rules, and Roth treatment are set by The IRS. Source: IRS — 401(k) Contribution Limits.
(1) Pre-tax contributions (2026 employee limit: $24,500; $32,000 if 50+) reduce your taxable income now — a $7,500 contribution at 22% marginal rate saves $1,650 in tax immediately. (2) Employer match is instant 50–100% return on your contribution — never leave this behind. (3) Tax-deferred compound growth — no tax on dividends or gains until withdrawal, dramatically accelerating growth over 30+ years.
Annual 401k limits and catch-up contributions
| Type | 2026 limit |
|---|---|
| Employee contribution (under 50) | $24,500 |
| Catch-up (age 50–59 and 64+) | $32,000 (extra $7,500) |
| Special catch-up (age 60–63) | $35,750 (extra $11,250) |
| Total including employer (under 50) | $70,000 |
| IRA contribution limit | $7,500 ($8,500 if 50+) |
How employer 401k matching works
Common match structures
The most common employer match is 100% of the first 3% of salary, then 50% of the next 2% — effectively 4% of salary if you contribute 5%+. Always contribute at least enough to get the full match. Missing employer match is equivalent to turning down a 50–100% instant return on that portion of your contribution.
How vesting schedules work and borrowing from your 401(k)
Vesting: when employer contributions become yours
Your own 401(k) contributions are always 100% vested (they are your money immediately). However, employer matching contributions may be subject to a vesting schedule — a timeline before you fully own them. If you leave before being fully vested, you forfeit the unvested portion.
Cliff vesting vs graded vesting
| Year | Cliff vesting (typical) | Graded vesting (6-year) |
|---|---|---|
| Year 1 | 0% | 0% |
| Year 2 | 0% | 20% |
| Year 3 | 100% | 40% |
| Year 4 | 100% | 60% |
| Year 5 | 100% | 80% |
| Year 6 | 100% | 100% |
Cliff vesting: you are 0% vested until the cliff date (commonly 3 years), then 100% vested all at once. Graded vesting: you vest gradually, typically 20–33% per year over 3–6 years. Federal law requires full vesting by 6 years (graded) or 3 years (cliff) at most.
401(k) loans
Many plans allow you to borrow from your own 401(k) balance. You can borrow up to the lesser of 50% of your vested balance or $50,000. The loan must be repaid within 5 years (longer for a primary home purchase), with payments typically deducted from your paycheck. You pay interest to yourself (usually prime rate + 1%). If you leave your job with an outstanding loan, the remaining balance is treated as a distribution — subject to income tax and a 10% early withdrawal penalty if under age 59½.
Roth conversion ladder and mega backdoor Roth strategies
Roth conversion ladder (for early retirees)
A Roth conversion ladder is a strategy for accessing traditional 401(k)/IRA funds before age 59½ without penalty. Each year, you convert a portion of your traditional balance to a Roth IRA. You pay ordinary income tax on the converted amount in the year of conversion, but after a 5-year seasoning period, you can withdraw the converted principal tax-free and penalty-free — regardless of age. By starting conversions 5 years before you need the money, early retirees build a "ladder" of accessible Roth funds. This works best in years when your income (and therefore tax rate) is low.
Mega backdoor Roth
The mega backdoor Roth is an advanced strategy to get significantly more money into Roth accounts. The 2026 total 401(k) contribution limit (employee + employer) is $70,000 ($77,500 if 50+). After maxing out your regular pre-tax/Roth 401(k) contributions ($24,500) and receiving employer match, you may be able to make after-tax contributions up to the total limit — then immediately convert those after-tax contributions to a Roth 401(k) or Roth IRA (called an "in-plan Roth conversion" or "in-service withdrawal"). This only works if your plan allows after-tax contributions and in-plan conversions — not all plans do. Check with your plan administrator.
401(k) growth projections by contribution and age
401(k) balance projections at 7% annual return
| Starting age | $500/month | $1,000/month | $2,042/month (max) |
|---|---|---|---|
| Age 25 (40 yrs to 65) | $1,310,000 | $2,620,000 | $5,350,000 |
| Age 30 (35 yrs) | $891,000 | $1,782,000 | $3,640,000 |
| Age 35 (30 yrs) | $608,000 | $1,216,000 | $2,480,000 |
| Age 40 (25 yrs) | $394,000 | $788,000 | $1,610,000 |
| Age 45 (20 yrs) | $245,000 | $490,000 | $1,000,000 |
| Age 50 (15 yrs) | $158,000 | $316,000 | $646,000 |
The cost of delayed contributions
$500/month from age 25 = $1,310,000. Same amount from age 35 = $608,000. Starting 10 years later costs you $700,000 — despite contributing only $60,000 less. Compound interest rewards early starters disproportionately.
Employer match doubles your money instantly
Typical US match: 100% up to 3% of salary, then 50% up to 5%. On $75,000 salary contributing 5% ($3,750): employer adds $3,000. Over 30 years at 7%: that extra $3,000/year grows to $283,000. Always capture full employer match.
Traditional 401(k) vs Roth 401(k) vs IRA comparison
2026 contribution limits
| Account type | 2026 limit | 50+ catch-up |
|---|---|---|
| Traditional / Roth 401(k) | $24,500 | +$7,500 (or +$11,250 age 60-63) |
| Traditional / Roth IRA | $7,500 | +$1,000 |
| SEP-IRA (self-employed) | $70,000 (25% of comp) | No separate catch-up |
| Solo 401(k) | $70,000 total | +$7,500 |
| SIMPLE IRA | $16,500 | +$3,500 |
Traditional vs Roth trade-off
Traditional: pre-tax contribution, tax-deferred growth, taxed on withdrawal. Roth: after-tax contribution, tax-free growth, tax-free withdrawal. Traditional better if retiring in LOWER tax bracket. Roth better if retiring in HIGHER bracket or want tax diversification.
Tax diversification strategy
Most advisors recommend balancing traditional and Roth contributions. Traditional for marginal rate savings now. Roth for future tax hedge. Can switch emphasis based on income year — contribute Roth in low-income years, traditional in high-earning years.
Required Minimum Distributions (RMDs)
Traditional 401(k) and IRA: must start withdrawals at age 73 (raised from 72 by SECURE 2.0). Based on life expectancy. Roth IRA: no RMDs. Roth 401(k): RMDs required but can be rolled to Roth IRA to avoid.
401(k) withdrawal rules and tax implications
Age 59½ — penalty-free withdrawals
After age 59½, withdrawals from traditional 401(k) are taxed as ordinary income but no penalty. Roth 401(k) withdrawals also tax-free after 59½ AND 5-year Roth seasoning.
Early withdrawal penalties
Before age 59½: 10% penalty PLUS ordinary income tax on traditional 401(k) distributions. Penalty exceptions: disability, death, medical expenses over 7.5% AGI, 72(t) substantially equal periodic payments, qualified domestic relations order (QDRO).
Rule of 55
If you separate from service at age 55 or later, you can take distributions from THAT employer's 401(k) without 10% penalty. Doesn't apply to IRAs. Doesn't apply to previous employer 401(k)s unless rolled to current.
RMD calculations
RMD age 73: 1/27.4 of balance (3.6%). Age 80: 1/20.2 (4.95%). Age 90: 1/12.2 (8.2%). SECURE 2.0 changed ages and waived first-year penalties. Failure to take RMD: 25% penalty (down from 50%).
401(k) loans — rules and risks
Can borrow up to 50% or $50,000 (whichever less). Must repay in 5 years via payroll deductions. Interest paid to yourself. If leave employer with outstanding loan: becomes taxable distribution + 10% penalty if under 59½.
401(k) contribution strategies by income
Low income ($40k-$60k)
Prioritize getting full employer match — typically 4-5% contribution. Consider Saver's Credit (up to 50% credit on $2,000 contribution). Roth 401(k) often better at lower marginal rates (likely higher at retirement).
Middle income ($60k-$120k)
Contribute 10-15% of salary. Traditional 401(k) usually beats Roth in 22-24% bracket. Maximize HSA if available ($4,400 single). Open Roth IRA on top ($7,500) for tax diversification.
High income ($120k-$200k)
Max out 401(k) at $24,500. Consider Mega Backdoor Roth if plan allows. Max HSA. Backdoor Roth IRA (convert non-deductible traditional IRA). Watch AGI triggers for other phase-outs.
Very high income ($200k+)
Max 401(k) + catch-up if eligible. Mega Backdoor Roth essential. Consider non-qualified deferred compensation plans. HSA maxed. Consider after-tax brokerage for liquidity. Net Investment Income Tax (3.8%) applies.
Self-employed / 1099
Solo 401(k) or SEP-IRA. Solo 401(k) allows both employee ($24,500) + employer (25% of comp up to $70k total). SEP-IRA simpler but only employer contributions. Can combine with HSA, Roth IRA.
Near retirement (50+)
Catch-up $7,500 extra ($32,000 total). Age 60-63: enhanced catch-up $11,250 ($35,750 total from SECURE 2.0). Increase allocation toward bonds as retirement approaches. Consider Roth conversions before Medicare premium thresholds.
How 401(k) fees destroy retirement wealth
Fee drag on $500,000 balance over 30 years (7% gross return)
| Expense ratio | Net return | 30-year balance | Lost to fees |
|---|---|---|---|
| 0.05% (index fund) | 6.95% | $3,770,000 | — |
| 0.25% (typical target date) | 6.75% | $3,560,000 | -$210,000 |
| 0.75% (mid-fee mutual fund) | 6.25% | $3,080,000 | -$690,000 |
| 1.25% (high-fee plan) | 5.75% | $2,670,000 | -$1,100,000 |
Identify 401(k) fees
Check plan documents for 408(b)(2) disclosure. Look for: expense ratios on each fund, administrative fees (often a % of assets or flat), advisor fees if applicable. Good plans total under 0.5%. Bad plans over 1.5%.
If your 401(k) is too expensive
Contribute up to employer match, then redirect extra to Roth IRA / traditional IRA. At separation, roll to IRA (typically much lower fees). Check for low-cost index funds within plan — Vanguard, Fidelity Zero, Schwab are cheapest.
401(k) withdrawal and retirement income planning
The 4% rule and safe withdrawal rates
Classic rule: withdraw 4% of pot year one, inflation-adjust. Historically safe for 30+ year retirement. $1m pot = $40,000/year income. Plus Social Security (~$22-36k/year) = comfortable retirement.
Sequence of returns risk
Poor early retirement returns devastating to portfolio. Bad 5 years at start = run-out risk. Solutions: hold 2-3 years cash buffer; use bucket strategy; adjust spending during market drops; delay Social Security to 70 for larger guaranteed income.
Social Security timing
Full retirement age (FRA): 66-67 depending on birth year. Claim at 62: permanent 25-30% reduction. Claim at 70: 24-32% boost. Break-even around age 78-82. Delaying to 70 often wins for healthy singles with longevity history.
Roth conversion strategy
Convert traditional to Roth in low-income years (after retirement, before Social Security/RMDs). Fill up lower brackets each year. Reduces future RMDs and tax bracket risk. Watch Medicare IRMAA surcharges on high-income years.
Medicare and IRMAA
Income-Related Monthly Adjustment Amount: higher Medicare premiums for higher incomes. 2-year lookback (2024 income affects 2026 premiums). MAGI over $106k single / $212k MFJ triggers surcharges. Plan around these thresholds.
Net Unrealized Appreciation (NUA)
If company stock in 401(k): at retirement, distribute stock to taxable account. Cost basis taxed as ordinary income. Appreciation taxed at long-term capital gains (15-20%). Can save significant tax on large stock accumulations.
401(k) rollover options when changing jobs
Four options at job change
| Option | Pros | Cons |
|---|---|---|
| Leave with old employer | No action needed; familiar | May not be allowed under $5k; limited investment options |
| Roll to new 401(k) | Consolidation; may allow Roth conversion | New plan fees may be worse |
| Roll to IRA | Most flexibility; usually lower fees | Loses creditor protection; may affect backdoor Roth |
| Cash out | Immediate access | Ordinary income tax + 10% penalty if under 59.5; usually terrible |
Direct vs indirect rollover
Direct: trustee-to-trustee transfer; no tax withholding; simple. Indirect: you receive check (20% withheld for federal tax); must deposit to new account within 60 days; must make up 20% withholding from other funds. Always choose direct.
In-service rollover
Some plans allow rollover while still employed (after age 59.5, sometimes earlier). Useful for Mega Backdoor Roth and access to better investment options. Check plan documents.
Roth 401(k) rollover rules
Roll to Roth IRA: new 5-year clock starts for conversion amount. Roll to new Roth 401(k): existing 5-year clock preserved. Once in Roth IRA, no RMDs.
401(k) vs IRA vs Roth: US retirement account comparison 2026
Contribution limits 2026
| Account | Under 50 | Age 50+ | Income limits |
|---|---|---|---|
| 401(k) Traditional | $24,500 | $32,000 | None |
| 401(k) Roth | $24,500 | $32,000 | None |
| Traditional IRA | $7,500 | $8,500 | Deduction phase-out if have 401k |
| Roth IRA | $7,500 | $8,500 | $150k-$165k single, $236k-$246k MFJ |
| HSA | $4,400 / $8,750 family | +$1,000 (55+) | None (need HDHP) |
Optimal contribution order
1) 401(k) to full employer match. 2) HSA (if HDHP) — triple tax advantage. 3) Roth IRA or Backdoor Roth. 4) Max remaining 401(k). 5) Mega Backdoor Roth if plan allows. 6) Taxable brokerage.
Backdoor Roth IRA
For high earners above Roth income limits: contribute to non-deductible traditional IRA, immediately convert to Roth. Watch pro-rata rule — if you have other pre-tax IRAs, conversion is partially taxed. Roll pre-tax IRAs to 401(k) first to avoid.
Self-employed options
Solo 401(k): $24,500 employee + up to 25% of comp as employer = $70k total. SEP-IRA: 25% of comp up to $70k (simpler but lower flexibility). SIMPLE IRA: $16,500 + $3,500 catch-up (for small employers).
401(k) investment allocation by age
Age-based allocation rules
Classic rule: 100 - age = % in stocks. Age 30: 70% stocks. Age 60: 40% stocks. Updated rule: 110 or 120 - age (for longer retirement). Target Date Funds automatically adjust allocation as you approach retirement.
Three-fund portfolio
Bogleheads classic: Total US Stock Market (60%), Total International Stock (20%), Total Bond Market (20%). Low-cost, broadly diversified. Rebalance annually. Beats most managed funds over long term.
Target Date Funds (TDF)
Most common default 401(k) investment. Automatically shifts from stocks to bonds as retirement approaches. Expense ratios 0.08-0.75%. Vanguard Target Retirement funds very low cost (0.08%). One-decision investing.
Risk tolerance check
Can you hold through -30% market drop without panic selling? If not, allocation is too aggressive. 2008: S&P lost 37%. 2022: lost 18%. Selling at bottom destroys returns. Match allocation to risk tolerance, not just age.
401(k) hardship withdrawals and emergency access
Hardship withdrawal criteria
Immediate and heavy financial need. Qualifying reasons: medical expenses, home purchase (primary residence), tuition, eviction/foreclosure prevention, funeral expenses, home repair. No requirement to repay.
Hardship withdrawal tax treatment
Subject to ordinary income tax plus 10% early withdrawal penalty if under 59½. $10,000 hardship in 22% bracket: $2,200 tax + $1,000 penalty = $3,200 cost for $10,000 access. Very expensive — last resort.
SECURE 2.0 penalty exceptions
Emergency expenses: $1,000/year penalty-free (rolling). Domestic abuse victims: lesser of $10,000 or 50% of account. Long-term care insurance: up to $2,500/year. Natural disaster: up to $22,000. All subject to repayment rules.
72(t) Substantially Equal Periodic Payments
Access 401(k) before 59½ without penalty. Must take equal distributions for 5 years OR until 59½, whichever later. IRS calculators determine amount. Flexibility rules changed 2022 to be more favorable.
401(k) loan alternative to withdrawal
Borrow up to $50,000 or 50% of vested balance. No tax, no penalty. 5-year repayment. Interest paid to yourself. Job loss: must repay within 60-90 days or becomes taxable distribution.
401(k) behavioral strategies: auto-escalation and psychological tools
Auto-escalation
Many plans offer automatic contribution increases (1% per year). Set once, grow contributions without active decision. Research shows 3x higher retirement savings in plans with auto-escalation defaults.
Contribution rate anchoring
Default rates matter enormously. Plans with 3% defaults: most stay at 3%. Plans with 6% defaults: most stay at 6%. If plan defaults low, proactively increase to 10-15%.
Save the raise
Commit to increasing 401(k) contribution rate by 50% of each raise. $5,000 raise: add 2.5% to contribution. Painless since you never see the money. Scales naturally as income grows.
Rebalance annually
Pick annual date (tax day, birthday). Review allocation vs target. Rebalance back if drift exceeds 5%. Automated rebalancing in many plans handles this automatically.
Avoid timing the market
Missing just the 10 best market days over 20 years cuts returns in half. Dollar-cost averaging via regular 401(k) contributions eliminates timing risk. Stay the course during volatility.
US employer retirement plan types
403(b) - nonprofit/education
Teachers, hospital workers, nonprofit employees. Same $24,500 limit as 401(k). Often lower-cost index funds than retail 401(k). Special 15-year service catch-up for long-tenured employees.
457(b) - government
State and local government employees. Same $24,500 limit. Unique benefit: no 10% early withdrawal penalty — can access before 59½ without penalty if separated from service.
TSP - federal government
Thrift Savings Plan. Very low fees (0.04-0.05% on core funds). Roth and traditional. Automatic 1% employer contribution + up to 4% match. One of the best retirement plans available.
SIMPLE IRA - small employers
Under 100 employees. $16,500 limit 2026. Easier for employers to administer. Lower employee limits but always 100% match up to 3%.
Pension (defined benefit)
Employer guarantees lifetime income. Becoming rare in private sector. Still common in public sector. Separate from 401(k). Lump sum vs annuity decision at retirement.
Frequently askedFrequently asked questions
Traditional vs Roth 401k — which is better?
Traditional 401k: contributions are pre-tax (reduce income now), withdrawals in retirement are taxed. Best if you expect to be in a lower tax bracket at retirement. Roth 401k: contributions are after-tax (no immediate reduction), but withdrawals in retirement are completely tax-free. Best if you expect higher taxes in retirement or want tax-free growth. Many advisors recommend contributing to both.
What is a good 401k balance at my age?
A common benchmark: 1× salary by 30, 3× by 40, 6× by 50, 8× by 60, and 10× by 67 (Fidelity guidelines). At $75,000 salary: $75k by 30, $225k by 40, $450k by 50. These are targets, not requirements — starting later but contributing more can still lead to a comfortable retirement.
What happens to my 401k if I change jobs?
You can roll your 401k into your new employer's plan or into an IRA with no tax consequence. You can also leave it with your former employer (if allowed) or cash it out (taxed as ordinary income + 10% penalty if under 59½ — generally inadvisable). A direct rollover avoids taxes and penalties.
When can I withdraw from my 401k without penalty?
Age 59½ is the standard penalty-free withdrawal age. Early withdrawals before 59½ face a 10% penalty plus ordinary income tax, unless specific exceptions apply (disability, death, substantially equal periodic payments, etc.). Required Minimum Distributions (RMDs) begin at age 73.
What is a vesting schedule and how does it affect my 401(k)?
A vesting schedule determines when employer matching contributions become fully yours. With cliff vesting, you are 0% vested until a set date (usually 3 years), then 100% all at once. With graded vesting, you vest gradually (e.g., 20% per year over 5–6 years). Your own contributions are always 100% vested immediately. If you leave before being fully vested, you forfeit the unvested employer match.
Can I borrow from my 401(k)?
Yes, if your plan permits it. You can borrow up to 50% of your vested balance or $50,000 (whichever is less). The loan must be repaid within 5 years via payroll deductions, and you pay interest to yourself. However, if you leave your job with an outstanding loan balance, it becomes a taxable distribution (plus 10% penalty if under 59½). Borrowed funds also miss out on market growth while repaying.
Where these figures come from
Retirement figures on this page come from The IRS (contribution limits and tax treatment), the SSA (Social Security benefits), and The US Department of Labor / Employee Benefits Security Administration.
- 401(k) & IRA contribution limits — IRS — Retirement Plan Contribution Limits.
- Required Minimum Distributions — IRS — RMDs.
- Social Security benefits & retirement age — SSA — Retirement Benefits.
- 2026 COLA and wage base — SSA — Cost-of-Living Adjustment.
- Retirement plan rules for employers — DOL/EBSA — Retirement Plans.
Last checked: April 2026. Rates and thresholds are reviewed against the source of record each November, when annual adjustments for the following tax year are published.
Select the question that matches where you are right now.
Your result shows the projected growth or return based on the rate, contribution, and time period you entered — using standard compound or simple interest formulas.
Use this to set savings targets, compare investment options, or understand the impact of starting earlier. Adjust the rate and timeframe to model optimistic and conservative scenarios.
Not a guaranteed return. Actual investment outcomes depend on market conditions, fees, taxes, and timing that cannot be predicted with certainty.
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Savings and investment results are dominated by three factors: the rate of return, the time horizon, and regular contributions. Compounding amplifies all three over time.
Returns on returns accelerate growth over time. The difference between 5% and 7% over 20 years is much larger than the 2% gap suggests — compounding is non-linear.
Adding even small regular amounts dramatically increases the final balance. $100/week invested at 7% for 20 years grows to over $110,000 in contributions and $110,000+ in returns.
Starting 5 years earlier often produces a larger final balance than doubling your contribution rate. Time is the most powerful variable in savings calculations.
To improve your savings outcome, focus on starting earlier, increasing contributions, and minimising fees and tax drag on returns.
Starting with a small amount today and increasing over time beats waiting to start with a larger amount. Time in the market matters more than timing the market.
A 1% annual fee on a $100k balance costs $1,000/year and compounds against you. Compare fee structures across savings and investment products.
Super, offset accounts, and tax-free thresholds reduce the drag of tax on your returns — letting more of the growth compound for you.
Savings decisions connect to investment, tax, and retirement planning. Use these calculators to model the broader picture.
Work backwards from a target amount to see how much you need to save each month.
Savings goal →Model how an initial investment grows with regular contributions over different time periods.
Compound interest →See what your future balance is worth in today's dollars after adjusting for inflation.
Inflation calculator →