401(k) Calculator Projection Employer Match Early Withdrawal RMD & Distributions ...
401(k) Calculator
401(k) Projection
Current Age
Retirement Age
Current 401(k) Balance (£)
Annual Salary (£)
Your Contribution (%)
Annual Return (%)
Employer Match
Annual Salary (£)
Your Contribution (%)
Employer Match (%)
Match Limit (%)
Annual Return (%)
Investment Period (Years)
Early Withdrawal
401(k) Balance (£)
Withdrawal Amount (£)
Your Age
Federal Tax Rate (%)
State Tax Rate (%)
Exception Applies?
RMD & Distributions
401(k) Balance (£)
Current Age
Account Type
Beneficiary Age
Annual Return (%)
Distribution Strategy
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Results
401(k) Growth Breakdown
Understanding 401(k) Planning
401(k) plans are powerful retirement savings vehicles that offer tax advantages and potential employer matching contributions. Understanding how to optimize your 401(k) strategy is crucial for building long-term wealth and ensuring financial security in retirement.
401(k) projections help you estimate your retirement balance based on your current contributions, employer match, and expected investment returns. Employer matching provides free money that can significantly boost your retirement savings—always contribute enough to get the full match.
Early withdrawal calculations show the substantial penalties and taxes you'll face if you access your 401(k) before age 59½, helping you avoid costly mistakes. Required Minimum Distributions (RMDs) ensure you don't defer taxes indefinitely, with calculations based on your account balance and life expectancy.
Use these calculators to maximize your 401(k) benefits, avoid penalties, and develop a comprehensive retirement income strategy.
Frequently Asked Questions
A: For 2024, the annual employee contribution limit is £23,000 (£30,500 if you're 50 or older with catch-up contributions). The total combined limit (employee + employer) is £69,000 or 100% of your compensation, whichever is less.
A: Employer matching is free money contributed to your 401(k) based on your contributions. Common match structures include 50% of your contributions up to 6% of salary (effectively a 3% match) or dollar-for-dollar matching up to a certain percentage. Always contribute enough to get the full employer match—it's an immediate 100% return on your investment.
A: If you withdraw from your 401(k) before age 59½, you'll typically face a 10% early withdrawal penalty plus ordinary income taxes on the amount withdrawn. There are some exceptions for qualified hardships like medical expenses, first-time home purchases (up to £10,000), or disability, but it's generally best to avoid early withdrawals to preserve your retirement savings.
A: Required Minimum Distributions (RMDs) must begin by April 1 of the year following the year you turn 73 (for those who reach age 72 after December 31, 2022). After the first RMD, you must take subsequent RMDs by December 31 of each year. Roth IRAs are not subject to RMDs during the owner's lifetime.
A: Your RMD is calculated by dividing your account balance as of December 31 of the previous year by your life expectancy factor from the IRS Uniform Lifetime Table. For example, if you're 75 with a £800,000 balance and a life expectancy factor of 22.9, your RMD would be £800,000 ÷ 22.9 = £34,935.
A: Traditional 401(k) contributions are tax-deductible now but taxed upon withdrawal. Roth 401(k) contributions are made with after-tax dollars but grow tax-free. Choose Traditional if you expect to be in a lower tax bracket in retirement, and Roth if you expect to be in the same or higher tax bracket. Many people benefit from having both types of accounts for tax diversification.
A: You have several options: leave it with your former employer (if allowed), roll it over to your new employer's 401(k), roll it into an IRA, or cash it out (which triggers taxes and penalties). Rolling over to an IRA or new 401(k) is usually the best choice to avoid taxes and maintain tax-deferred growth.