401k Calculator

Maximizing Your 401(k)

A 401(k) is one of the most powerful tools for building retirement wealth, primarily due to the employer match and tax advantages.

Key Strategies

• Get the Full Match: If your employer matches up to 3% or 5% of your salary, ensure you contribute at least that much. That is an instant 100% return on your investment.
• Increase Annually: Try to increase your contribution rate by 1% each year, or whenever you get a raise. You likely won't notice the difference in your paycheck, but your future self will thank you.

Understanding Vesting

Vesting refers to your ownership of the money contributing by your employer. While your own contributions are always yours, employer matches often vest over a period of 3-5 years. If you leave the job early, you may forfeit some of these matched funds.

Contribution Limits (2024)

The IRS limits how much you can contribute. For 2024, the limit is $23,000. If you are age 50 or older, you can contribute an additional $7,500 as a catch-up contribution.