401(k) Retirement Calculator - Calculate 401(k) Retirement Balance & Distribution Amounts
401(k) Balance & Distribution Calculator
per year
per year
Enabled: Assumes contributions earn interest for half the year
Disabled: Monthly compounding with year-end contributions
Disabled: Monthly compounding with year-end contributions
Retirement Portfolio Analysis
Retirement Portfolio Value
Net Investment Gains (After Tax)
Starting Retirement Balance
Employee Contributions
Employer Match
Total Retirement Contributions
Total Tax Liability
Growth from Initial Balance (Pre-Tax)
Growth from Employee Contributions (Pre-Tax)
Growth from Employer Match (Pre-Tax)
Total Investment Growth (Pre-Tax)
Retirement Contribution & Distribution Analysis
401(k) Balance Growth Projection
Retirement Withdrawal Strategy
| Retirement Month | Starting Balance | Principal Withdrawn | Interest Earned | Remaining Balance | Cumulative Principal | Cumulative Interest | Total Withdrawn |
|---|
How to Use This Calculator
Step 1: Enter Your Current Information
- Current 401(k) Balance: Your existing account value
- Current Age & Retirement Age: Used to calculate accumulation period
- Annual Gross Income: Required for percentage-based contributions
Step 2: Set Your Contribution Strategy
- Contribution Rate: Choose percentage of income or fixed dollar amount
- Employer Match: Enter your company's matching rate and maximum eligible percentage
- Salary Growth Rate: Expected annual income increases
Step 3: Configure Investment Assumptions
- Expected Annual Return: Historical stock market average is ~7-10%
- Inflation Rate: Long-term U.S. average is ~2-3%
- Tax Rate: Estimated tax on investment gains
Step 4: Choose Calculation Method
- Standard Method: Monthly contributions with monthly compounding
- Mid-Year Method: Annual contributions earning half-year interest
Understanding the Results
- Strategy 1: Fixed monthly withdrawals that gradually lose purchasing power
- Strategy 2: Inflation-protected withdrawals that maintain constant purchasing power
- Charts and Tables: Detailed breakdown of accumulation and distribution phases
What Is 401(K) Retirement?
A 401(k) plan is an employer-sponsored retirement savings account that allows you to contribute pre-tax dollars, potentially receive employer matching contributions, and benefit from tax-deferred growth. Understanding how your contributions compound over time is crucial for retirement planning.
What Are the Advantages of a 401(k)?
- Tax Advantages: Contributions reduce your current taxable income
- Employer Matching: Free money from your employer up to certain limits
- Compound Growth: Your investments grow tax-deferred over decades
- Higher Contribution Limits: Generally higher than IRA limits
How to Maximize Your 401(k) Benefits?
- Contribute enough to get full employer match: This is free money you shouldn't leave on the table
- Increase contributions gradually: Boost your contribution rate annually or with salary increases
- Consider Roth 401(k) options: If available, this provides tax-free withdrawals in retirement
- Rebalance regularly: Maintain your target asset allocation as markets change
- Avoid early withdrawals: Penalties and taxes can significantly reduce your savings
What Is the Common 401(k) Limits (2024, 2025, 2026)?
401(k) contribution limits for 2024
- Employee contribution limit: $23,000 ($30,500 for age 50+)
- Total contribution limit: $69,000 ($76,500 for age 50+)
401(k) contribution limits for 2025
- Employee contribution limit: $23,500 ($31,000 for age 50-59 and 64+, $34,750 for age 60-63)
- Total contribution limit: $70,000 ($77,500 for age 50-59 and 64+, $81,250 for age 60-63)
401(k) contribution limits for 2026
- Employee contribution limit: $24,500 ($32,500 for age 50-59 and 64+, $35,750 for age 60-63)
- Total contribution limit: $72,000 ($80,000 for age 50-59 and 64+, $83,250 for age 60-63)
| Year | Pretax and Roth employee contributions | Employee + employer contributions | Catch-up contributions (in addition to the employee and employer limit) |
|---|---|---|---|
| 2024 | $23,000 | $69,000 | $7,500 |
| 2025 | $23,500 | $70,000 | $7,500 (50-59 or 64+), $11,250 (60-63, if your plan allows) |
| 2026 | $24,500 | $72,000 | $8,000 (50-59 or 64+), $11,250 (60-63, if your plan allows) |
Note: Contribution limits are adjusted annually by the IRS. Check current limits on IRS.gov.
References and Additional Resources
This calculator incorporates standard financial formulas and principles. For authoritative information on retirement planning, consult these official sources:
- IRS 401(k) Contribution Limits - Official IRS guidance on annual contribution limits
- Social Security Administration Retirement Planning - Federal retirement benefit information
- U.S. Department of Labor - Retirement Planning - Comprehensive retirement planning resources
- SEC Investor.gov - Retirement Plans - Securities and Exchange Commission investor education
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