401(k) Savings Plan Inputs: |
401(k) Balance by Year |
This is the percentage of your annual salary you contribute to your 401(k) plan each year. Most employers permit employees to contribute up to 100% of their salary to a 401(k).
This is your annual salary from your employer before taxes and other benefit deductions. Since your contribution and company match are based on the salary paid to you by your employer, do not include any income you may receive from sources other than your employer.
Your total contribution for one year is based on your annual salary times the percent you contribute. However, your annual contribution is also subject to certain maximum total contributions per year. The annual maximum for 2025 is $23,500. If you are age 50 or over, a 'catch-up' provision allows you to contribute an additional $7,500 into your account. Beginning in 2025 the SECURE 2.0 Act increases the catch-up contribution for individuals age 60 to 63. For 2025, this is $11,250 instead of $7,500. Beginning in 2026 catch-up contributions must be made as Roth contributions for individuals making more than $145,000 (adjusted for inflation) in the previous year. The current calculator does not incorporate the impact of the Roth requirement which is subject to pending IRS rule finalization and clarification. It is also important to note that employer contributions do not affect an employee's maximum annual contribution limit.
It is important to note that some employees are subject to another form of contribution limitations. Employees classified as 'Highly Compensated' may be subject to contribution limits based on their employer's overall 401(k) participation. If you expect your salary to be $160,000 or more in 2025 or was $155,000 or more in 2024, you may need to contact your employer to see if these additional contribution limits apply to you.
Your current age.
Age you wish to retire. This calculator assumes that the year you retire, you do not make any contributions to your 401(k). For example, if you retire at age 65, your last contribution occurs when you are actually 64.
The starting balance or current amount you have invested or saved in your 401(k).
The annual rate of return for your 401(k) account. This calculator assumes that your return is compounded annually and your deposits are made monthly. The actual rate of return is largely dependent on the types of investments you select. The Standard & Poor's 500® (S&P 500®) for the 10 years ending December 31st 2024, had an annual compounded rate of return of 14.9%, including reinvestment of dividends. From January 1, 1970 to December 31st 2024, the average annual compounded rate of return for the S&P 500®, including reinvestment of dividends, was approximately 11.2% (source: www.spglobal.com). Since 1970, the highest 12-month return was 61% (June 1982 through June 1983). The lowest 12-month return was -43% (March 2008 to March 2009). Savings accounts at a financial institution pay less but carry significantly lower risk of loss of principal balances.
It is important to remember that these scenarios are hypothetical and that future rates of return can't be predicted with certainty and that investments that pay higher rates of return are generally subject to higher risk and volatility. The actual rate of return on investments can vary widely over time, especially for long-term investments. This includes the potential loss of principal on your investment. It is not possible to invest directly in an index and the compounded rate of return noted above does not reflect sales charges and other fees that investment funds and/or investment companies may charge.
The annual percentage you expect your salary to increase. The tool assumes that your salary will continue to increase at this rate until you retire.
This is the percent of your salary matched by your employer in the form of a profit share. For example, if you have an annual salary of $25,000 and the employer profit share is 3%, your employer will add another $750 to your 401(k) account. Employer contributions can be subject to a vesting schedule. See your plan information for details.
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