How it works
A 401k lets you save pre-tax money for retirement, and many employers match a percentage of your contributions.
Annual total = Salary × (Your % + Employer match %)
Why the employer match matters
An employer match is effectively free money. If your employer matches up to 4 percent, contributing at least 4 percent doubles part of your money immediately — before any investment growth.
Contribution limits and rules
Annual contribution limits change over time, so check the current IRS limit. Many plans also allow an extra catch-up contribution if you are 50 or older.
A note on returns
This uses a fixed annual return, which is a simplification. Real markets vary year to year, so treat the projection as a long-term estimate, not a guarantee.