401(k) Calculator

FINANCE & TAX CALCULATOR 401K A precise tool.
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What is the 401K & How does it work?
A 401(k) is a retirement savings plan offered by employers that allows employees to contribute a portion of their salary on a pre-tax basis. The contributions grow tax-deferred until withdrawal, at which point they are taxed as ordinary income.
The annual contribution limit for 401(k) plans is set by the IRS and can change each year. For example, in 2023, the maximum contribution limit is $22,500 for most individuals under age 50.
FV = PV times (1 + r)^n
FV = Future Value, PV = Present Value, r = Annual Interest Rate, n = Number of Years
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Frequently Asked Questions
What is a 401(k)?
A 401(k) is an employer-sponsored retirement plan that allows you to save money for retirement on a pre-tax basis.
How much can I contribute to my 401(k) in 2023?
The maximum contribution limit for most individuals under age 50 in 2023 is $22,500.
What happens to my 401(k) contributions?
Your contributions grow tax-deferred until withdrawal, at which point they are taxed as ordinary income.
How do I calculate the future value of my 401(k)?
Use the formula FV = PV imes (1 + r)^n, where FV is Future Value, PV is Present Value, r is the annual interest rate, and n is the number of years.
Can I contribute to a 401(k) if I'm over 50?
Yes, individuals aged 50 or older can make additional catch-up contributions, which in 2023 are up to $7,500.
Are there any penalties for withdrawing from a 401(k) early?
Yes, if you withdraw funds before age 59.5, you may be subject to a 10% penalty tax in addition to regular income taxes.
How does my employer's matching contribution affect my 401(k)?
Your employer's matching contribution can significantly boost your retirement savings, as it is essentially free money that grows tax-deferred with your contributions.

Results are for informational purposes only and do not constitute professional advice.