What is a 401(k) and how does it work?

A 401(k) is an employer-sponsored retirement account that allows you to contribute pre-tax dollars. Many employers offer matching contributions, essentially free money for your retirement. Contributions grow tax-deferred until withdrawal in retirement.

How much should I contribute to my 401(k)?

At minimum, contribute enough to get your full employer match - this is free money. Ideally, aim for 10-15% of your income including the match. For 2024, you can contribute up to $23,000 ($30,500 if 50 or older).

What is employer matching?

Employer matching is when your company contributes money to your 401(k) based on your contributions. Common matches include 50% of your contributions up to 6% of salary, or dollar-for-dollar matching up to 3-4% of salary.

Can I withdraw money from my 401(k) early?

Yes, but early withdrawals before age 59½ typically incur a 10% penalty plus income taxes. Some exceptions exist for hardships, first-time home purchases, or loans against your balance (if your plan allows).

What's the difference between traditional and Roth 401(k)?

Traditional 401(k) contributions are pre-tax (lowering current taxes) but taxed in retirement. Roth 401(k) contributions are after-tax but grow and are withdrawn tax-free in retirement. Choose based on your current vs. expected retirement tax rate.

401(k) Calculator

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Employer Match

% match

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401(k) Calculator

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Frequently Asked Questions

Helpful Resources & Guides

IRS 401(k) Resource Guide

Government

Official IRS guidance on 401(k) plans, contribution limits, and tax implications.

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Department of Labor 401(k) Guide

Government

Comprehensive guide covering participant rights, plan selection, and management.

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Retirement Planning Basics

Education

Fundamental concepts for building a comprehensive retirement strategy beyond 401(k).

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Investment Fund Selection

Investment

How to choose appropriate investment options within your 401(k) plan.

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Catch-Up Contributions Guide

Advanced

Special rules and benefits for participants age 50 and older.

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401(k) vs IRA Comparison

Comparison

Detailed comparison of retirement account types to optimize your strategy.

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Disclaimer: This calculator provides estimates for educational purposes only. Consult with a qualified financial advisor for personalized retirement planning advice. Past performance doesn't guarantee future results.

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401(k) Calculator

401(k) Plan Details

Personal Information

Contributions & Benefits

Enter Your Information

Frequently Asked Questions

Helpful Resources & Guides

IRS 401(k) Resource Guide

Department of Labor 401(k) Guide

Retirement Planning Basics

Investment Fund Selection

Catch-Up Contributions Guide

401(k) vs IRA Comparison

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