401(k) Calculator
Project your 401(k) balance at retirement, including employer matching. Always contribute at least enough to capture the full employer match — it's an instant 100% return on your contribution.
Employer Match Settings
% of your contribution matched
Up to this % of salary matched
Example: 100% match up to 3% of salary = employer adds up to $2,250/yr
Employer-Sponsored Retirement Plans by Country
| Country | Plan | Employer Contribution | Employee Limit |
|---|---|---|---|
| 🇺🇸 US | 401(k) | Varies (typically 3–6% match) | $23,000 (2024) |
| 🇬🇧 UK | Workplace Pension | Min 3% auto-enrolment | Up to £60,000 total |
| 🇦🇺 AU | Superannuation | 11% mandated by law | $27,500 concessional |
| 🇨🇦 CA | RRSP + DPSP | Varies by employer | 18% of earned income |
| 🇩🇪 DE | bAV (occupational pension) | Varies | €3,504 employer-funded limit |
Frequently Asked Questions
Should I choose Traditional or Roth 401(k)?
Traditional 401(k) reduces your taxable income now — best if you expect to be in a lower tax bracket in retirement. Roth 401(k) uses after-tax dollars but grows tax-free — best if you expect higher taxes in retirement. Many financial planners recommend diversifying between both to hedge against future tax law changes.
What happens to my 401(k) if I move abroad?
Your 401(k) stays in the US and continues to grow tax-deferred. If you move to the UK, Canada, or Australia, you generally cannot contribute to your 401(k) further (as you need US earned income). Withdrawals may be subject to both US taxes and the foreign country's taxes, though many countries have tax treaties with the US that provide relief.
The Power of Employer Match: Why It's the Best Return in Finance
A 100% employer match on the first 4% of salary is a guaranteed, immediate 100% return on that portion of your money — better than any investment available. If you earn $75,000 and your employer matches 50% up to 6% of salary, not contributing at least 6% means leaving $2,250 per year on the table. Over 30 years at 7% growth, that forfeited match compounds to over $227,000 in lost retirement savings. This is the single most important action for any US employee with access to a 401(k): contribute enough to capture the full employer match before contributing to any other savings vehicle.
Traditional vs Roth 401(k): The Tax Timing Decision
A Traditional 401(k) gives you a tax deduction today — you contribute pre-tax dollars, reducing your current taxable income. Withdrawals in retirement are taxed as ordinary income. A Roth 401(k) uses after-tax contributions, but all growth and qualified withdrawals are completely tax-free. The decision comes down to whether your tax rate will be higher now or in retirement. At age 25 with modest income: Roth is likely better (you are probably in a low bracket now and will be in higher brackets later). At age 55 in peak earning years: Traditional often makes more sense (defer taxes from your highest-earning years). Many advisers recommend splitting contributions between both to hedge future tax uncertainty, since tax laws can change over a 30+ year horizon.
The Compounding Effect: Why Starting Early Matters More Than Contributing More
Two workers illustrate the power of early contributions. Worker A contributes $6,000/year from age 22 to 32 (10 years, $60,000 total) then stops entirely. Worker B contributes $6,000/year from age 32 to 65 (33 years, $198,000 total). At a 7% average return, Worker A at age 65 has approximately $720,000 — Worker B has approximately $700,000. Worker A contributed far less money but started 10 years earlier, and still ends up with more. This is the fundamental argument for contributing to a 401(k) as early as possible, even in small amounts — time in the market is more powerful than the amount contributed.
Required Minimum Distributions (RMDs) and Age 73 Rule
One key difference between Traditional and Roth 401(k)s: at age 73, the IRS requires minimum withdrawals from Traditional accounts (called RMDs — Required Minimum Distributions). The amount is calculated by dividing your account balance by your life expectancy factor. In 2024, if you have $1,000,000 in Traditional 401(k) assets at age 73, your RMD is approximately $36,496 (÷ 27.4 life expectancy factor), which you must take and pay ordinary income tax on — whether you need the money or not. Roth 401(k)s are exempt from RMDs if rolled to a Roth IRA before age 73. UK Workplace Pensions and Australian Superannuation have very different drawdown rules with no direct equivalent to US RMDs.