How it works
A 401(k) grows from three sources: your contributions, free employer match money, and compound growth. The match is a 100% instant return — always contribute enough to get the full match.
The 4% rule estimates sustainable yearly withdrawals: 4% of your balance per year, adjusted for inflation.
Frequently asked questions
How much should I contribute?
At minimum, enough for the full employer match (often 4–6%). Many advisors suggest 15% of income including match.
What is the 2025 contribution limit?
$23,500 under 50 ($31,000 if 50+). Employer+employee combined: $70,000.
What return should I assume?
7% nominal is a common planning figure for a stock-heavy portfolio; use 4–5% to be conservative.
Disclaimer: This calculator provides estimates for educational purposes only and is not financial, tax, or legal advice. Consult a qualified professional before making financial decisions.