Back to Home

The Ultimate Guide to 401(k) Contributions

Understand how your 401(k) works, the power of employer matching, and strategies to maximize your retirement nest egg.

Ready to Project Your 401(k) Growth?

Our 401(k) Contribution Calculator helps you visualize the future value of your retirement savings based on your contributions, employer match, and expected returns.

Use the 401(k) Calculator
What is a 401(k)?

A 401(k) is a retirement savings plan sponsored by an employer. It lets workers save and invest a piece of their paycheck before taxes are taken out. Taxes are deferred until the money is withdrawn in retirement. It's one of the most powerful tools available for building long-term wealth.

The main advantages are tax-deferred growth and, most importantly, the potential for an employer match.

The Magic of the Employer Match

Many employers offer to match a certain percentage of your contributions. For example, an employer might match 50% of your contributions up to 6% of your salary. This is essentially free money and a 100% return on your investment, instantly.

It is almost always a good idea to contribute at least enough to get the full employer match. Failing to do so is like turning down a pay raise. Our calculator shows you exactly how much your employer's match adds to your savings over time.

How to Use the Calculator

To get the most accurate projection, you'll need a few key pieces of information:

  • Account Details: Enter your current 401(k) balance and your annual salary.
  • Contributions: Input your contribution percentage and the details of your employer's match (match percentage and the limit).
  • Growth: Add the expected annual return and the number of years until retirement.
  • Calculate: Click the button to see the future value of your 401(k), with a breakdown of your contributions, employer match, and investment returns.