401k Calculator 2025

Calculate your 401k contributions, employer match, tax savings, and retirement projections with the latest 2025 contribution limits. Plan your retirement savings strategy with accurate calculations.

Calculate 401k Savings View 2025 Limits

401k Retirement Calculator

Enter your information to calculate 401k contributions and retirement projections

401k Contribution Limits & Rules (2025)

Employee Contributions 2025

Standard Limit
$23,500

Maximum employee contribution for 2025

Catch-up Contribution (50+)
$7,500

Additional contribution for age 50+

Total Limit (50+)
$31,000

Standard + catch-up contribution

2025 Increase
+$500

Increased from $23,000 in 2024

Adjusted annually for inflation

Total Contribution Limits

Combined Limit (Under 50)
$70,000

Employee + employer contributions

Combined Limit (50+)
$77,500

Including catch-up contributions

Compensation Limit
$350,000

Maximum compensation considered

Employer Match
Varies

Typically 3-6% of salary

Free money - always maximize match

Historical Limits

2025 $23,500 $7,500
2024 $23,000 $7,500
2023 $22,500 $7,500
2022 $20,500 $6,500
2021 $19,500 $6,500
Annual Adjustments
COL

Adjusted for cost of living increases

IRS announces limits each October

Contribution Strategies

Traditional vs Roth 401k
Both

Pre-tax vs after-tax contributions

Recommended Contribution
10-15%

Of gross income including match

Vesting Schedule
0-6 years

Time to own employer contributions

Best Practice
Auto-Increase

Increase contribution by 1% annually

Take advantage of automatic escalation

401k Contribution Examples (2025)

Young Professional

Age: 28

Annual Salary: $75,000

401k Contribution: 10% ($7,500)

Employer Match: 50% up to 6%

Annual 401k Breakdown
Employee Contribution (10%) $75,000 × 10% = $7,500
Employer Match (3%) $75,000 × 3% = $2,250
Tax Savings (22% bracket) $7,500 × 22% = $1,650
Total 401k Value $9,750
Net Cost to Employee $5,850

Mid-Career Professional

Age: 42

Annual Salary: $120,000

401k Contribution: 15% ($18,000)

Employer Match: 100% up to 4%

Annual 401k Breakdown
Employee Contribution (15%) $120,000 × 15% = $18,000
Employer Match (4%) $120,000 × 4% = $4,800
Tax Savings (24% bracket) $18,000 × 24% = $4,320
Total 401k Value $22,800
Net Cost to Employee $13,680

Pre-Retirement (50+)

Age: 55

Annual Salary: $150,000

401k Contribution: Max ($31,000)

Employer Match: 50% up to 6%

Annual 401k Breakdown
Standard Contribution $23,500 (2025 limit)
Catch-up Contribution (50+) $7,500 (additional)
Employer Match (3%) $150,000 × 3% = $4,500
Tax Savings (32% bracket) $31,000 × 32% = $9,920
Total 401k Value $35,500
Net Cost to Employee $21,080

High Earner Strategy

Age: 35

Annual Salary: $200,000

401k Contribution: Max ($23,500)

Employer Match: 100% up to 3%

Annual 401k Breakdown
Employee Contribution (Max) $23,500 (2025 limit)
Employer Match (3%) $200,000 × 3% = $6,000
Tax Savings (35% bracket) $23,500 × 35% = $8,225
Total 401k Value $29,500
Net Cost to Employee $15,275

Frequently Asked Questions About 401k Plans

The 401k contribution limit for 2025 is $23,500 for employees under 50. Those 50 and older can contribute an additional $7,500 catch-up contribution, for a total of $31,000. These limits increased by $500 from 2024.

Yes, always contribute enough to get the full employer match - it's free money with an immediate 100% return. If your employer matches 50% up to 6% of salary, contribute at least 6% to maximize the match.

Excess contributions must be withdrawn by April 15 of the following year to avoid double taxation. The excess amount and any earnings are taxable in the year contributed. Most payroll systems prevent over-contributions.

Yes, but early withdrawals before age 59½ typically incur a 10% penalty plus income taxes. Some exceptions include hardship withdrawals, loans (if plan allows), or separation from service after age 55.

Important 401k Information

401k contributions are made with pre-tax dollars, reducing your current taxable income. Withdrawals in retirement are taxed as ordinary income. Early withdrawals before age 59½ may incur a 10% penalty plus taxes. Always maximize your employer match as it's free money. Consider your overall retirement strategy including IRAs, Social Security, and other savings. This calculator provides estimates and should not be considered financial advice.