401(k) Calculator Project retirement balances, optimize employer match, model early withdrawals, and plan RMDs — with 202...

401(k) Calculator

Project retirement balances, optimize employer match, model early withdrawals, and plan RMDs — with 2025 IRS rules and benchmarks.

Retirement Projection

Employer Match

Early Withdrawal

RMD & Distributions

Annual Salary ($)

Current Age

Retirement Age

Contribution (%)

Employer Match 50% of 6% 100% of 3% Tiered (100% of 3%, 50% of next 2%) None

Current Balance ($)

Annual Salary ($)

Match Type 50% of 6% 100% of 3% 100% of 4%

IRS Limit ($) 23,500 (<50) 31,000 (≥50) 34,750 (60–63)

Account Balance ($)

Withdrawal Amount ($)

Tax Bracket (%) 12% 22% 24% 32%

Age

Years to Retirement

Account Balance ($)

Age

Tax Bracket (%) 12% 22% 24%

$0

Projected Balance

$0

Employer Contributions

$0

Annual Withdrawal

—%

Optimal Contribution %

401(k) Growth Over Time

How 401(k)s Work

Projection Formula** (simplified):

$$FV = P(1+r)^n + \sum_{t=1}^n (C + M) \cdot \frac{(1+r)^{n-t+1} - 1}{r}$$

Where: • $P$ = current balance • $C$ = annual employee contribution • $M$ = annual employer match • $r$ = annual return • $n$ = years to retirement

Example** ($100K salary, 6% + 3% match, 6.5% return, 35 → 67): • Employee: $6,000/yr × 32 = $192,000 • Employer: $3,000/yr × 32 = $96,000 • Growth: **$2.3M projected balance** • 4% withdrawal = **$92K/yr retirement income**

✅ Pro Tip**: Max out match *first* — it’s 50–100% immediate return. Then fund IRA/Roth before 401(k) beyond match.

401(k) Red Flags

⚠️ Avoid these costly mistakes:

• Missing match due to IRS cap** — Contributing 15% in Jan–Oct = $23,500 → no match last 2 mos → **lose $1,800/yr**
• Ignoring vesting cliffs** — Quit at 2.9 yrs on 3-yr cliff = forfeit 100% employer contributions
• Roth 401(k) RMD confusion** — Must take RMDs unless rolled to Roth IRA
• Early withdrawal “emergency” abuse** — $50K withdrawal at 45 → $28K net + $78K opportunity cost

✅ Best Practices**:

• Contribute **monthly**, not front-loaded, to maximize match
• Use **Roth 401(k)** if in low tax bracket now (<22%)
• Roll 401(k) → **Roth IRA at 73** to avoid RMDs

2025 401(k) Benchmarks

Scenario	Contribution	30-Yr Balance	Annual Income
$100K Salary	6% + 3% match	$2.3M	$92K (4%)
$150K Salary	10% + 4% match	$4.1M	$164K (4%)
No Match (Solo)	15% alone	$1.5M	$60K (4%)

📉 Match Loss Calculator**:

• 0% vs. 3% match on $100K → **$3,000/yr** → **$418K lost** (30 yrs, 6.5% return)
• Vesting cliff miss: **$24K employer match forfeited** (avg. 3-yr cliff, $8K/yr)

How to Use This Calculator

➡️ Retirement Projection

“$100K salary, 6% + 3% match, 35 → 67 — what’s my balance?” ($2.3M)

➡️ Employer Match

Find the *exact* % to max match without hitting IRS cap early (e.g., 8.1% for $100K salary on 50% of 6% plan)

➡️ Early Withdrawal

“$50K withdrawal at 45 — what’s the net after tax + penalty?” ($28,250)

➡️ RMD & Distributions

“$1.5M at 75 — what’s my RMD?” ($60,240)

Note: Uses 2025 IRS limits, 6.5% return, 3% inflation, and standard vesting schedules. Roth conversions modeled via rollover at RMD age.