401(k) Calculator (Advanced)
Growth • Early Withdrawal • Employer Match
Year-by-Year Balance
Frequently Asked Questions (FAQ)
1. What is a 401(k) plan?
A 401(k) plan is a retirement savings account sponsored by an employer in the USA. Employees can contribute a portion of their salary, often with an employer match, and invest it to grow for retirement.
2. How does the employer match work?
Employers may match a percentage of your contributions up to a limit. For example, a 50% match up to 3% of your salary means the employer adds $0.50 for every $1 you contribute, up to 3% of your salary.
3. Can I adjust my expected return?
Yes. The expected annual return is an estimate of how much your investments may grow each year. You can adjust this to see different growth scenarios.
4. What is the inflation-adjusted balance?
Inflation-adjusted balance shows your 401(k) balance in today’s dollars. It accounts for the decrease in purchasing power over time due to inflation.
5. Can I withdraw funds before retirement?
Yes, but early withdrawals may incur a 10% penalty plus income taxes, unless you qualify for certain exemptions. Our calculator can estimate your net amount after penalties and taxes.
6. How does salary increase affect my 401(k)?
Higher annual salary increases boost your contributions (if percentage-based) and employer match, which increases your 401(k) balance over time.
7. How do I maximize my employer match?
To take full advantage, contribute at least the percentage that ensures the employer contributes the maximum allowed. Our “Max Employer Match” calculator tab helps determine this optimal contribution rate.
8. Is this calculator accurate?
The calculator provides an estimate based on inputs like salary, contributions, returns, and inflation. Actual results may vary due to market fluctuations, tax changes, or investment choices.