401(k) Calculator
Project your 401(k) balance at retirement, including employer matching and compound growth.
Maximizing Your 401(k)
A 401(k) is one of the most powerful retirement savings tools available to employees. Contributions are made pre-tax, reducing your current taxable income while the investments grow tax-deferred until retirement. This dual tax benefit accelerates wealth accumulation significantly compared to taxable accounts.
The most important rule: always contribute at least enough to capture the full employer match. If your employer matches 3% of salary and you only contribute 2%, you're leaving free money on the table. The employer match provides an immediate 100% return on your money — no investment can reliably beat that.
For 2026, you can contribute up to $23,500 to your 401(k). If you're 50 or older, catch-up contributions allow an additional $7,500. Combined with employer contributions, the total limit is $70,000.
Asset allocation matters as much as contribution rate. Most target-date funds automatically adjust from aggressive (mostly stocks) to conservative (more bonds) as you approach retirement, making them a simple set-it-and-forget-it option for most investors.