Employer Match: Free money from your employer! We calculate exactly how much your employer contributes based on their match formula. Common formulas include "100% match up to 3%" (employer matches dollar-for-dollar up to 3% of your salary) or "50% match up to 6%" (employer contributes 50 cents for every dollar you contribute, up to 6% of salary).
Contribution Limits: The IRS sets annual limits on 401(k) contributions. For 2024, you can contribute up to $23,000 if you're under 50, or $30,500 if you're 50+. Our calculator warns you if you're exceeding these limits.
Traditional vs Roth: Traditional 401(k) contributions reduce your taxable income now but you pay taxes in retirement. Roth 401(k) contributions are made with after-tax dollars but grow tax-free and aren't taxed in retirement. The calculator compares both to show which provides better after-tax value.
Vesting: Some employers require you to stay for a certain period before their contributions are fully yours. "Cliff vesting" means 0% until a date, then 100%. "Graded vesting" gradually increases your ownership percentage over time.