Employee limit: $23,500/year ($1,958/month) | Age 50+ catch-up: +$7,500 ($31,000 total) | Age 60–63 super catch-up: +$11,250 ($34,750 total) | Total with employer match: $70,000
401(k) Calculator
Model your 401(k) growth below. If your employer offers a match (e.g. 50% of contributions up to 6% of salary), add that to your monthly contribution figure — it's free money that doubles your effective return on those dollars.
The Employer Match: The Best Return You'll Ever Get
An employer match is an instant 50–100% return on your contribution. If your employer matches 50 cents per dollar up to 6% of your salary, contributing 6% gives you a 9% total contribution with zero additional cost.
If your employer offers any match and you're not contributing at least enough to get it in full, you're effectively taking a pay cut. Even if money is tight, prioritize reaching the match threshold before anything else.
401(k) Employer Match: Real Dollar Impact
| Salary | Your 6% Contribution | 50% Employer Match | Total Annual | Extra at Retirement (30 yrs, 7%) |
|---|---|---|---|---|
| $50,000 | $3,000 | $1,500 | $4,500 | +$151k from match alone |
| $75,000 | $4,500 | $2,250 | $6,750 | +$226k from match alone |
| $100,000 | $6,000 | $3,000 | $9,000 | +$302k from match alone |
Traditional 401(k) vs Roth 401(k)
| Traditional 401(k) | Roth 401(k) | |
|---|---|---|
| Contributions | Pre-tax (reduces taxable income now) | After-tax (no current deduction) |
| Growth | Tax-deferred | Tax-free |
| Withdrawals | Taxed as ordinary income | Tax-free (qualified) |
| RMDs | Required at 73 | None (starting 2024) |
| Best for | High earners now, lower income in retirement | Younger workers or those expecting higher future tax rates |
The Vesting Schedule: When Is the Match Actually Yours?
Employer match contributions are often subject to a vesting schedule — you only fully own them after working a certain number of years:
- Immediate vesting: Match is yours from day one (best scenario)
- Cliff vesting: 0% until year 3, then 100% (common)
- Graded vesting: 20% per year for 5 years (20% at year 1, 40% at year 2, etc.)
Your own contributions are always 100% vested immediately.