401(k) Calculator

For 2024, employees can contribute up to $23,000 to a 401(k). Those age 50 and older can make an additional catch-up contribution of $7,500, for a total of $30,500.

A common employer match is 100% of contributions up to 6% of salary. If you earn $70,000 and contribute 6% ($4,200), your employer adds $4,200, giving you $8,400 total. Always contribute at least enough to get the full match.

Traditional 401(k) contributions are pre-tax, reducing your taxable income now but taxes are due on withdrawal. Roth 401(k) contributions are after-tax, but withdrawals in retirement are tax-free. Choose based on whether you expect to be in a higher tax bracket now or in retirement.

You can roll over your 401(k) to your new employer's plan or to an IRA, which preserves tax advantages. You can also leave it with your old employer or cash it out (not recommended — you'll owe income tax plus a 10% early withdrawal penalty if under 59.5).

You can make penalty-free withdrawals at age 59.5. Required Minimum Distributions (RMDs) must begin at age 73. Early withdrawals before 59.5 are subject to income tax plus a 10% penalty, with some exceptions.