What is the 401k contribution limit?

For 2024, the 401k contribution limit is $23,000 for employees under 50 and $30,500 for those 50+ (with catch-up contribution). Employer contributions don't count toward this limit.

How does employer match work?

A common employer match is 50% of employee contributions up to 6% of salary. If you earn $60,000 and contribute 6% ($3,600), your employer adds $1,800. Always contribute at least enough to get the full match.

Should I prioritize 401k over Roth IRA?

First contribute enough to get the full employer match (free money), then consider maxing a Roth IRA for tax diversification, then return to maximize 401k contributions.

401(k) Calculator

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Maximize Your 401(k) Retirement Savings

A 401(k) is one of the most powerful retirement savings vehicles available to American workers. By contributing pre-tax dollars, you reduce your taxable income today while allowing your investments to grow tax-deferred until retirement. The employer match is essentially free money — always try to contribute at least enough to capture the full match. If you're also considering after-tax growth, compare your options with our Roth IRA Calculator.

The power of compound interest means that starting early makes a dramatic difference. Even modest annual contributions can grow substantially over a 30–40 year career. Our Retirement Calculator can help you factor in Social Security, pensions, and other income sources to get a complete picture of your retirement readiness.

In 2024, the IRS contribution limit for 401(k) plans is $23,000 (with an additional $7,500 catch-up contribution for those 50 and older). Make sure you're also reviewing your investment allocation as you approach retirement — gradually shifting toward more conservative investments can protect the gains you've worked hard to accumulate.

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For a related calculation, use Interest Calculator to compute compound and simple interest for savings accounts and investments. Alternatively, use Retirement Calculator to project retirement savings balance and estimate monthly income for your retirement years.

For the underlying method, read 401k vs Roth IRA: Which Is Right for You?.