AtlasCalcsUtility Calculation Suite
2026-08-07 9 min

401K Calculator

Estimate your 401(k) balance at retirement, the true cost of early withdrawals, and the contribution level that maximizes your employer match.

Calculator

The 401(k) Calculator can estimate a 401(k) balance at retirement as well as distributions in retirement based on income, contribution percentage, age, salary increase, and investment return.

Basic info

Current age
Current annual salary
Current 401(k) balance
Contribution
%
of salary
Employer match
%
of salary
Employer match limit
%
of salary

Projections

Expected retirement age
Life expectancy
Expected salary increase
%
per year
Expected annual return
%
per year
Expected inflation rate
%
per year
Results update live as you type

Results

$9,998,577.11
Total Contributions
$503,465.61
Total Employer Match
$2,267,328.07
Total Investment Return
$7,227,783.43
Contributions
5.0%
Employer match
22.7%
Investment return
72.3%
Balance

Yearly Breakdown

AgeSalaryContributionMatchReturnBalance
30$75,000.00$7,500.00$37,500.00$6,650.00$101,650.00
31$77,250.00$7,725.00$38,625.00$10,360.00$158,360.00
32$79,567.50$7,956.75$39,783.75$14,427.04$220,527.54
33$81,954.53$8,195.45$40,977.26$18,879.02$288,579.27
34$84,413.16$8,441.32$42,206.58$23,745.90$362,973.07
35$86,945.56$8,694.56$43,472.78$29,059.83$444,200.23
36$89,553.92$8,955.39$44,776.96$34,855.28$532,787.86
37$92,240.54$9,224.05$46,120.27$41,169.25$629,301.44
38$95,007.76$9,500.78$47,503.88$48,041.43$734,347.52
39$97,857.99$9,785.80$48,928.99$55,514.36$848,576.67
40$100,793.73$10,079.37$50,396.86$63,633.70$972,686.61
41$103,817.54$10,381.75$51,908.77$72,448.40$1,107,425.54
42$106,932.07$10,693.21$53,466.03$82,010.93$1,253,595.71
43$110,140.03$11,014.00$55,070.01$92,377.58$1,412,057.31
44$113,444.23$11,344.42$56,722.11$103,608.67$1,583,732.52
45$116,847.56$11,684.76$58,423.78$115,768.87$1,769,609.92
46$120,352.98$12,035.30$60,176.49$128,927.52$1,970,749.23
47$123,963.57$12,396.36$61,981.79$143,158.92$2,188,286.29
48$127,682.48$12,768.25$63,841.24$158,542.70$2,423,438.49
49$131,512.95$13,151.30$65,756.48$175,164.24$2,677,510.50
50$135,458.34$13,545.83$67,729.17$193,114.99$2,951,900.49
51$139,522.09$13,952.21$69,761.05$212,492.96$3,248,106.70
52$143,707.76$14,370.78$71,853.88$233,403.20$3,567,734.55
53$148,018.99$14,801.90$74,009.49$255,958.22$3,912,504.16
54$152,459.56$15,245.96$76,229.78$280,278.59$4,284,258.49
55$157,033.34$15,703.33$78,516.67$306,493.49$4,684,971.99
56$161,744.35$16,174.43$80,872.17$334,741.30$5,116,759.90
57$166,596.68$16,659.67$83,298.34$365,170.25$5,581,888.16
58$171,594.58$17,159.46$85,797.29$397,939.14$6,082,784.05
59$176,742.41$17,674.24$88,371.21$433,218.06$6,622,047.56
60$182,044.69$18,204.47$91,022.34$471,189.21$7,202,463.58
61$187,506.03$18,750.60$93,753.01$512,047.70$7,827,014.90
62$193,131.21$19,313.12$96,565.60$556,002.55$8,498,896.17
63$198,925.14$19,892.51$99,462.57$603,277.59$9,221,528.85
64$204,892.90$20,489.29$102,446.45$654,112.52$9,998,577.11

Results

Optimal

Balance at Retirement

$9,998,577.11

Projected 401(k) balance at your expected retirement age

Total Employer Match

$2,267,328.07

Free money contributed by your employer over the working years

Total Contributions

$503,465.61

Your own contributions plus the starting balance

Total Investment Return

$7,227,783.43

Growth earned by the balance at the expected return rate

The projection assumes a constant return compounded yearly and a simplified match formula. It does not enforce IRS contribution caps, subtract plan fees, or model taxes at retirement — the early-withdrawal tab models the penalty separately.

Visualizations

What Makes Up the Balance

Your Contributions5%
Employer Match23%
Investment Return72%

Balance by Age

Formula

Each working year, your salary grows at the expected raise rate, you defer a percentage of it, and the employer adds a match capped at a limit. The balance plus that year's additions then grows at the expected return rate, compounding through retirement.

Balance(t+1) = (Balance(t) + Contribution(t) + Match(t)) × (1 + Return)

Alternative Form

Contribution = Salary × (1 + Raise)ᵗ × Contribution%; Match = Min(Salary, Limit) × Match%

Variables

SymbolNameUnitDescription
Salary(t)Salary in year tUSDStarting salary grown by the annual raise
Contribution%Contribution rate%Portion of salary deferred into the plan
Match%Employer match rate%How much the employer contributes on your contributions
Limit%Match limit%Percent of salary up to which the match applies
ReturnAnnual return%Yearly investment growth of the balance
BalancePlan balanceUSDAccumulated value including growth

Explanation

The projection runs year by year from your current age to retirement. Each year the salary earns the raise, the contribution and match are deposited, and the whole balance earns the return. The result at retirement is a nominal dollar figure — the inflation rate helps you understand how much purchasing power it may represent.

Derivation

Start with today's balance. For each year t: salary = currentSalary × (1 + raise)^t, contribution = salary × contribution%, match = min(salary, salary × limit%) × match% (simplified here to the percent of salary cap), balance = balance + contribution + match, then balance ×= (1 + return/100). The totals sum each component and the investment return is the residual after contributions and match are removed.

Step-by-Step Calculation

Follow each step to understand how the result is calculated from your inputs.

Step 1

Project the salary for each working year using the annual raise.

Salary(t) = Current Salary × (1 + Raise)^t
Current Salary:$75,000.00
Raise:3.000%
Intermediate: 35 working years projected
Result: Last year's salary = $204,892.90
Step 2

Compute the yearly contribution as a percent of that year's salary.

Contribution = Salary × Contribution%
Contribution %:10.000%
Intermediate: First year contribution = $7,500.00
Result: Total contributions = $503,465.61
Step 3

Add the employer match up to the stated percent-of-salary limit.

Match = Match% × Salary (capped at the match limit)
Match %:50.000%
Limit %:6.000%
Intermediate: First year match = $37,500.00
Result: Total employer match = $2,267,328.07
Step 4

Grow the entire balance at the expected annual return each year.

Balance = (Balance + Contribution + Match) × (1 + Return)
Return:7.000%
Intermediate: 35 compounding years
Result: Total investment return = $7,227,783.43
Step 5

Read the projected balance at retirement.

Balance at Retirement = Contributions + Match + Return
Contributions:$503,465.61
Match:$2,267,328.07
Intermediate: End of age 64
Result: Balance at retirement = $9,998,577.11
Final Answer
$9,998,577.11

Worked Examples

See how the calculator works with different scenarios.

Scenario

Age 30 with a $75,000 salary and $50,000 already saved. Defer 10% of pay, employer matches 50% up to 6% of salary, salary grows 3% a year, and the account earns 7%. Retire at 65.

Inputs

Age:30
Salary:$75,000
Balance:$50,000
Contribution:10%
Match:50% up to 6%
Return:7%
Retire at:65

Calculation

Year 1: contribution = 75000 × 10% = $7,500; match = 75000 × 50% (capped to the limit) = $37,500 Balance compounds at 7% for 35 years

Result

Projected balance of $9,998,577 at 65; contributions of $503,466, employer match of $2,267,328, and $7,227,783 of investment return

Interpretation

Compounding does the heavy lifting: more than 72% of the final balance comes from investment growth, not new money. Even modest savings started early become eight figures — and the employer match is essentially free money worth $2.3M of that total.

Understanding Your Result

Your Result: Balance at Retirement: $9,998,577.11

Typical range: The 2026 elective deferral limit is $23,500 (plus $7,500 catch-up for 50+). Median 401(k) balances hover near $50,000 for those in their 40s and over $100,000 by their 60s; employer matches commonly run 50% up to 6% of salary.

What This Means

The balance at retirement is what the plan is projected to hold in nominal dollars — contributions you made, match the employer added, and all the compounding in between. The early-withdrawal view shows how much of a premature withdrawal actually reaches you.

Why It Matters

The 401(k) is the primary retirement vehicle for most Americans, and its three features — pre-tax deferrals, employer match, and decades of compounding — are worth more together than any one of them alone. Understanding the projection makes the match limit and contribution rate concrete.

Professional Interpretation

Advisors usually target a combined contribution (yours plus match) of 10-15% of salary. The match should always be captured first — it is a guaranteed return that dominates any investment choice. Beyond the match, raise the deferral rate whenever income rises to keep savings aligned.

Pre-tax vs. Roth 401(k)

Traditional contributions lower today's taxable income and are taxed at withdrawal; Roth contributions are taxed now but grow tax-free. The projection is pre-tax; most plans let you split between the two.

The match is the best return available

A 50%-up-to-6% match returns 50% instantly on the first 6% you defer — no bond or stock is priced that generously. Failing to capture it leaves guaranteed money on the table.

Vesting and job changes

Unvested matches can be lost if you leave early. Many plans vest 20% per year over five years; a rollover at a job change preserves the balance and keeps compounding.

Recommendations

  • •Contribute at least enough to capture the full employer match
  • •Target 10-15% of salary including the match
  • •Increase your deferral by 1% each time you get a raise
  • •Check your plan's vesting schedule before switching jobs
  • •Use the early-withdrawal calculator before ever touching the money
  • •Re-run this projection annually as salary and balances change

Educational Content

Introduction

A 401(k) is an employer-sponsored retirement account funded with pre-tax payroll deferrals. Contributions lower your taxable income today, earnings grow tax-deferred, and many employers add a matching contribution up to a limit. Withdrawals after 59½ are taxed as ordinary income.

Concept Explanation

The plan grows through three streams: your own contributions, the employer match, and investment returns that compound for decades. Because the money is locked in until retirement, the account gets the full force of long-run compounding — early withdrawal defeats the purpose and adds a 10% penalty.

Applications

▸Projecting retirement savings from your current salary and balance
▸Setting a contribution rate that captures the full employer match
▸Measuring the true cost of cashing out early
▸Comparing starting-early versus starting-later scenarios
▸Planning around catch-up contributions after age 50
▸Modeling salary growth and return assumptions over decades

Benefits

  • •Pre-tax contributions lower your current taxable income
  • •Employer match is free money up to the plan limit
  • •Tax-deferred compounding for decades
  • •High contribution limits relative to IRAs

Limitations

  • •Money is locked until 59½ without penalty
  • •Withdrawals in retirement are taxed as ordinary income
  • •Investment options are limited to the plan menu
  • •Plan fees can quietly reduce returns

Best Practices

  • •Always capture the full employer match first
  • •Increase contributions when you get a raise
  • •Check fees and investment options in your plan
  • •Roll over the balance when changing jobs

Common Misconceptions

Myth: The 401(k) balance at retirement is what you will retire on.
Truth: It is a nominal projection using the return you entered; inflation, withdrawals, and taxes will reduce the real purchasing power.
Myth: Taking a loan from your 401(k) is harmless.
Truth: Loans leave the market, are repaid with after-tax dollars, and become fully taxable if you leave the job unpaid.
Myth: You pay taxes on contributions now.
Truth: Traditional 401(k) contributions are pre-tax; the tax bill comes at withdrawal, at your then-current rate.

Practical Tips

  • •Set your contribution rate to at least the match limit — the match is a 50%+ guaranteed return
  • •Increase your deferral by 1% on every raise to quietly boost savings
  • •Never take an early withdrawal; the 10% penalty plus lost compounding is brutal
  • •Check your plan's vesting schedule before leaving a job
  • •Compare plan fees — even 0.5% in fees shaves years of growth
  • •Re-run this projection each year as your salary and balance change
  • •Use a Roth 401(k) portion if you expect higher taxes in retirement

Common Mistakes

Contributing below the match threshold
Compute the match limit first and contribute at least that percent of salary.
Taking a 401(k) loan for consumer purchases
Loans leave the market and become taxable if you change jobs; keep emergency funds outside the plan.
Cashing out on job change instead of rolling over
Roll the balance into an IRA or the new employer's plan to preserve the tax deferral and compounding.
Ignoring plan fees
Review the plan's expense ratio — 1% less in fees is worth years of contributions over a career.
Stopping contributions when the market drops
Buying during downturns is historically the highest-return contribution year; keep the deferral running.
Treating the projection as guaranteed
The projection uses the return you enter; inflation-adjusted numbers will look different in today's dollars.

Assumptions

This calculator makes the following assumptions to provide estimates:

Annual Compounding: The return is applied once per year on the balance after contributions.
Salary Grows at a Constant Raise: The raise rate applies every year until retirement.
Match Capped at the Limit: The employer matches only up to the stated percent of salary.
Nominal Dollars: The projection is in future nominal dollars; the inflation rate is informational.
No Fees: Plan administration and fund fees are not subtracted.

Limitations

Be aware of these limitations when using this calculator:

No Contribution Cap Applied: The elective deferral IRS limit is not enforced in the projection; very high salaries and rates can overstate savings.
Simplified Match: Real match formulas can be tiered or vest gradually; this uses one flat percent up to a limit.
Constant Return: A single average return ignores sequence-of-return risk and market volatility.
No Tax Modeling: Withdrawals and taxes at retirement are not computed in the basic projection.

Frequently Asked Questions

Answers to common questions about this calculator.

What is a 401(k)?
A 401(k) is a retirement savings plan in the U.S. with tax benefits available through employers. It is named after subsection 401(k) in the Internal Revenue Code. Contributions are made as pre-tax deductions during payroll, reducing your taxable income for the year. Earnings grow tax-deferred until withdrawal.
What is employer matching?
Employer matching is when an employer contributes a percentage of an employee's contribution to their 401(k), usually up to a certain limit. A common scheme is 50% of employee contributions up to 6% of salary. This "free money" can significantly boost retirement savings — employees should always contribute enough to get the full match.
What is the 401(k) contribution limit for 2026?
For 2026, the elective deferral limit is $24,500 for those under 50, $32,500 for those aged 50 and older (including the $8,000 catch-up), and $35,750 for those aged 60 to 63 (SECURE 2.0 enhanced catch-up). The total contribution limit (including employer contributions) is $73,500 or $82,500 for those 50+.
What is the penalty for early 401(k) withdrawal?
Early withdrawals before age 59½ are subject to ordinary income taxes plus a 10% penalty, unless an exception applies. Exceptions include disability, unreimbursed medical expenses exceeding 10% of AGI (7.5% if itemizing), substantially equal periodic payments (72t), and separation from service at age 55 or later.
What is a Roth 401(k)?
A Roth 401(k) combines features of the traditional 401(k) and Roth IRA. Contributions are after-tax (no upfront deduction), but qualified withdrawals in retirement are completely tax-free. There are no income limits for Roth 401(k) contributions, unlike Roth IRAs. Employers can match Roth contributions but matches are pre-tax.
What happens to my 401(k) when I change jobs?
When leaving an employer, you have several options: leave the 401(k) with the former employer (if over $5,000), roll it over to a new employer's 401(k), roll it over to a Traditional IRA, or cash out (subject to taxes and penalties). Rolling over to an IRA is often the best option for investment flexibility and lower fees.
What are required minimum distributions (RMDs) for 401(k)s?
Anyone reaching age 73 must take RMDs from their 401(k) each year. The amount is calculated based on IRS life expectancy tables. The penalty for not taking the full RMD is 25% of the amount not withdrawn (reduced to 10% if corrected promptly). Roth 401(k)s also require RMDs, unlike Roth IRAs.
Can I take a loan from my 401(k)?
Many 401(k) plans allow loans of up to 50% of the vested balance, capped at $50,000. Loans must be repaid with interest within 5 years (unless for a primary residence). Repayments are made with after-tax dollars and will be taxed again when withdrawn. Loans default if you leave the employer.
What are the pros and cons of a traditional vs Roth 401(k)?
Traditional 401(k) contributions reduce current taxable income, making them ideal for those in higher tax brackets now who expect lower income in retirement. Roth 401(k) contributions provide tax-free withdrawals, ideal for those in lower tax brackets now who expect higher income later. Many plans allow both, enabling tax diversification.
How much should I contribute to my 401(k)?
A common recommendation is to contribute at least enough to get the full employer match (free money). Beyond that, aim for 10-15% of your income total (including employer contributions) toward retirement. If saving for retirement through a 401(k) alone, the maximum allowed is generally the best path for those who can afford it.
What is the difference between a traditional 401(k) and a Roth 401(k)?
Traditional 401(k) contributions are pre-tax, reducing current taxable income, and withdrawals are taxed as ordinary income. Roth 401(k) contributions are after-tax with no upfront deduction, but qualified withdrawals are tax-free. Many employers offer both options, allowing employees to diversify their tax treatment.
What is the 401(k) catch-up contribution?
For 2026, the catch-up contribution is $8,000 for those aged 50 and older, bringing the total limit to $32,500. Under SECURE 2.0, those aged 60-63 can contribute an enhanced catch-up of $11,250, totaling $35,750. Catch-up provisions help older workers accelerate their retirement savings.
Can I have both a 401(k) and an IRA?
Yes, you can contribute to both a 401(k) and an IRA in the same year. The 401(k) limit ($24,500 in 2026) is separate from the IRA limit ($7,500 in 2026). Many financial advisors recommend contributing enough to the 401(k) to get the full employer match, then maxing out an IRA.
What is vesting in a 401(k)?
Vesting determines ownership of employer contributions. Employee contributions are always 100% vested immediately. Employer contributions may follow a schedule: cliff vesting (100% after a set period, max 3 years) or graded vesting (increasing percentage yearly, max 6 years). Unvested amounts are forfeited if you leave early.
Can I withdraw my 401(k) contributions at any time?
Unlike Roth IRA contributions, 401(k) contributions generally cannot be withdrawn penalty-free before age 59½. Early withdrawals are subject to income taxes plus a 10% penalty. Some plans allow hardship withdrawals or loans, but these options have limitations and potential tax consequences.
What is a 401(k) hardship withdrawal?
A hardship withdrawal allows you to access 401(k) funds before age 59½ for immediate and heavy financial needs such as medical expenses, preventing foreclosure, or funeral costs. The 10% early withdrawal penalty still applies, and you must pay income taxes on the amount withdrawn.
What happens to my 401(k) if I am laid off?
If you are laid off, you can leave the 401(k) with your former employer (if over $5,000), roll it into a new employer's plan, roll it into an IRA, or cash it out (subject to taxes and penalties). Rolling over to an IRA is often recommended for lower fees and more investment options.
What is a 401(k) rollover?
A 401(k) rollover moves funds from an employer-sponsored plan to another retirement account without tax consequences. Direct rollovers (trustee-to-trustee) avoid taxes and penalties. Indirect rollovers must be completed within 60 days. Rolling to an IRA preserves tax-deferred status and expands investment choices.
What are the fees in a 401(k) plan?
401(k) fees include administrative fees (recordkeeping, compliance), investment fees (expense ratios on funds), and individual service fees (loan processing, qualified domestic relations orders). High fees can significantly reduce retirement savings over time. Average total fees range from 0.5% to 2% of assets annually.
What is an in-service 401(k) withdrawal?
An in-service withdrawal allows you to access 401(k) funds while still employed, typically after age 59½. Some plans also allow withdrawals of employer match funds after a certain period. In-service Roth 401(k) rollovers to Roth IRAs are becoming more common under SECURE 2.0.
Can I contribute to a 401(k) if I am self-employed?
Self-employed individuals can use a solo 401(k), which allows contributions as both employee (elective deferrals up to $24,500 in 2026) and employer (profit sharing up to 25% of compensation). Total contributions can reach $73,500 ($82,500 if 50+), with options for Roth contributions.
What is the difference between a 401(k) and a 403(b)?
401(k) plans are offered by for-profit companies, while 403(b) plans are for non-profit organizations, schools, and religious institutions. 403(b) plans generally have similar contribution limits but may offer fewer investment options. Both provide tax-deferred growth and employer match potential.
What is auto-enrollment in 401(k) plans?
Auto-enrollment automatically enrolls employees in the 401(k) plan at a default contribution rate (typically 3-6% of salary) unless they opt out. SECURE 2.0 mandates auto-enrollment for new 401(k) plans starting in 2025. Auto-enrollment significantly increases retirement plan participation rates.
Can I invest my 401(k) in individual stocks?
Most 401(k) plans limit investments to a preselected menu of mutual funds and target-date funds. Some plans offer a self-directed brokerage account option, allowing investment in individual stocks and ETFs. This option typically has higher fees and requires the investor to manage their own portfolio.
What is a safe harbor 401(k)?
A safe harbor 401(k) requires employers to make mandatory contributions (either matching or non-elective) that are immediately 100% vested. In exchange, the plan is exempt from annual nondiscrimination testing. This allows highly compensated employees to maximize contributions without testing restrictions.
What happens to my 401(k) in a divorce?
In a divorce, a 401(k) can be divided using a Qualified Domestic Relations Order (QDRO). The QDRO allows the transfer of funds to the ex-spouse's retirement account without triggering taxes or penalties. Without a QDRO, early withdrawal penalties and taxes would apply to a direct distribution.
What is the SECURE 2.0 Act and how does it affect 401(k)s?
SECURE 2.0, effective from 2024-2026, raises the catch-up age, mandates auto-enrollment for new plans, allows emergency savings accounts linked to 401(k)s, and permits employer matching of student loan payments. It also increases the RMD age to 73 and allows penalty-free withdrawals for emergencies.
Can I have two 401(k) accounts?
You can have multiple 401(k) accounts from different employers, but your total employee contribution limit across all accounts is $24,500 in 2026. Having multiple accounts means managing multiple investment strategies and fee structures. Consolidating through rollovers can simplify management.
What is the difference between a 401(k) and a pension?
A 401(k) is a defined contribution plan where the employee bears investment risk and the benefit depends on contributions and returns. A pension (defined benefit plan) guarantees a specific monthly benefit in retirement based on salary and years of service, with the employer bearing the investment risk.
What is a mega backdoor Roth 401(k)?
A mega backdoor Roth 401(k) allows high savers to contribute after-tax dollars beyond the elective deferral limit (up to the total limit of $73,500 in 2026) and convert them to Roth. This strategy requires the plan to allow after-tax contributions and in-plan Roth conversions or in-service distributions.
How are 401(k) withdrawals taxed?
Traditional 401(k) withdrawals are taxed as ordinary income at your marginal tax rate in the year of withdrawal. Roth 401(k) qualified withdrawals are tax-free. State income tax treatment varies. Early withdrawals before 59½ incur an additional 10% federal penalty unless an exception applies.
What is a SIMPLE 401(k)?
A SIMPLE 401(k) is designed for small businesses with 100 or fewer employees, combining features of SIMPLE IRAs and traditional 401(k)s. Employer contributions are either a dollar-for-dollar match up to 3% of compensation or a fixed 2% non-elective contribution. SIMPLE 401(k)s have lower administrative costs than standard 401(k) plans.
What is the 401(k) employer match vesting schedule?
Employer match vesting schedules vary by plan. Cliff vesting provides 100% vesting after a set period (typically 3 years). Graded vesting provides incremental vesting (e.g., 20% per year over 5 years). Safe harbor employer contributions are immediately 100% vested. Employees should understand their plan's vesting schedule before leaving an employer.
Can I use my 401(k) to buy a house?
Some 401(k) plans allow loans or hardship withdrawals for a first-time home purchase. Loans of up to $50,000 or 50% of the vested balance can be repaid over 5+ years. Hardship withdrawals are subject to income taxes and the 10% early withdrawal penalty. Using a 401(k) for a home purchase should be a last resort due to lost retirement growth.
What is a 401(k) plan document?
A 401(k) plan document is the legal contract that establishes the retirement plan, defining eligibility, contribution limits, vesting schedules, investment options, loan provisions, and distribution rules. Employers must maintain a current plan document and provide a summary plan description (SPD) to participants.

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Glossary

Technical terms used in mortgage calculations explained in plain language.

401(k)
An employer-sponsored retirement account funded with pre-tax payroll deferrals, named after IRC section 401(k).
Employer Match
Money the employer contributes to your account, typically a percent of your contribution up to a limit.
Vesting
Ownership of employer contributions; unvested match can be lost when leaving early.
Deferral Limit
The IRS cap on annual elective deferrals — $23,500 in 2026.
Catch-Up Contribution
Extra deferrals allowed for savers 50 and older — $7,500 in 2026.
Roth 401(k)
A 401(k) funded with after-tax dollars whose withdrawals are tax-free.
Early Withdrawal Penalty
The 10% IRS penalty on withdrawals before age 59½ unless an exception applies.
Rollover
Moving a 401(k) to an IRA or a new employer's plan without triggering taxes.
Required Minimum Distribution (RMD)
Annual withdrawals the IRS requires from tax-deferred accounts starting at 73.
Hardship Withdrawal
A penalty-eligible-but-taxed withdrawal for immediate financial need.
Safe Harbor 401(k)
A plan with mandatory employer contributions that bypasses nondiscrimination testing.
In-Service Withdrawal
A withdrawal or rollover allowed while still employed under plan rules.
Plan Fees
Administrative, investment, and advisory costs charged inside the plan.
Vesting Schedule
The timeline — often 20% per year — over which employer contributions become owned.
Auto-Enrollment
Plans that sign employees up at a default deferral rate unless they opt out.

Authoritative References

Trusted sources and standards referenced by this calculator.

Applicable Standards

IRC Section 401(k)IRS Retirement Plan Contribution LimitsERISA Disclosure RequirementsSECURE 2.0 Act

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Page Information

Last Updated:

2026-08-07

Version:

2.0.0

License:

Free to use for educational and professional purposes.