US 401(k) Retirement Projector
Plan your American dream with precision. Project your savings based on IRS contribution limits and employer matching for the 2026 fiscal year.
Estimated Nest Egg at Age 67
Total Value
Monthly Income
This projection assumes a 2% annual salary growth and IRS contribution limits for 2026 (currently estimated at $24,000 for individuals). Social Security estimates are based on current US standard formulas and 4% withdrawal rule.
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Why Use a 401(k) Calculator?
For most Americans, a 401(k) plan is the primary vehicle for retirement savings. Understanding how compound interest, employer matching, and tax-deferred growth work together is crucial for long-term financial stability in the United States.
2026 IRS Contribution Limits
The IRS typically adjusts contribution limits for inflation. For 2026, the elective deferral limit is projected to be around $24,000. If you are 50 or older, you may also qualify for "catch-up" contributions, allowing you to save even more for your future.
Mastering the Employer Match
The employer match is essentially "free money." If your US employer offers a 4% match, contributing anything less than 4% means you are leaving guaranteed compensation on the table. Most financial advisors recommend contributing at least enough to capture the full match.
- Tax Advantages: Contributions are made pre-tax, reducing your current taxable income.
- Compound Growth: Your earnings grow tax-deferred until withdrawal in retirement.
- Portability: Most 401(k) plans can be rolled into an IRA if you change American employers.
Roth vs. Traditional 401(k): Which is Better?
Many US employers now offer both options. The choice depends on your current tax bracket versus your expected bracket in retirement:
- Traditional: You get a tax break today, but pay taxes on withdrawals in retirement. Best for high earners now.
- Roth: You pay taxes today, but withdrawals in retirement are 100% tax-free. Best for young earners who expect their income to grow.
Understanding Vesting Schedules
Employer matches often come with strings attached, known as a "vesting schedule." This dictates how much of the employer's contribution you actually own if you leave the job early.
Common schedules include:
- Cliff Vesting: You own 0% until a specific year (e.g., Year 3), then you own 100%.
- Graded Vesting: Ownership increases incrementally (e.g., 20% per year) over 5-6 years.
Penalty-Free Withdrawals (Rule of 55)
Generally, withdrawing before age 59½ incurs a 10% penalty plus income tax. However, the IRS "Rule of 55" allows you to withdraw penalty-free from your current employer's 401(k) if you leave your job in or after the year you turn 55.