🏦

US 401(k) Tax Calculator 2021

Calculate retirement contributions, employer match, and tax savings

💰 Income & Contribution

Gross Annual Salary ($)

📊 Contribution Method

Percent (%)

Dollar Amount ($)

Use percentage for automatic calculation

I'm 50 or older (Catch-up contributions)

Ages 50+ can contribute an extra $6,500 per year

🤝 Employer Match

Match Percent (%)

Up to Salary (%) Limit

Example: "50% match up to 6% of salary" means employer matches 50¢ per dollar you contribute, up to 6% of your salary

📋 Tax Information

Filing Status

Pay Period

💵 Summary

Enter your details and calculate

2021 401(k) Contribution Limits

👤 Individual Contributions

Under 50 Years: $19,500

Age 50 & Older: $26,000

Catch-up Amount: $6,500

💼 Total Contribution Limit

Employee + Employer: $58,000

With Catch-up (50+): $64,500

Includes employee deferrals, employer match, and profit sharing

💡 Common Employer Match Examples

•

100% up to 3%: Employer matches dollar-for-dollar on first 3% of salary

•

50% up to 6%: Employer matches 50¢ per dollar on first 6% of salary (3% total match)

•

100% up to 4%, then 50% up to 6%: Full match on 4%, half match on next 2%

Understanding 401(k) Plans

🏦 What is a 401(k)?

A 401(k) is an employer-sponsored retirement savings plan that allows you to contribute pre-tax dollars from your paycheck. Your contributions grow tax-deferred until retirement, and many employers match a portion of your contributions.

💰 Tax Benefits

Contributions reduce your current year's taxable income
Money grows tax-deferred (no taxes on gains until withdrawal)
Lower your current tax bracket while saving for retirement
Potential for employer matching (free money!)

🎯 Contribution Strategies

Maximize employer match: Always contribute enough to get the full match
Increase gradually: Start with 6%, increase 1% each year
Max out if possible: Aim for the $19,500 limit ($26,000 if 50+)
Front-load: Contribute more early in the year for maximum growth

⚠️ Important Rules

Withdrawals before age 59½ face 10% penalty plus income tax
Required minimum distributions (RMDs) begin at age 72
Loans available from some plans (use cautiously)
Roth 401(k) option available with after-tax contributions

📈 Long-term Growth

The power of compound growth means early contributions have decades to grow. For example, $5,000 contributed at age 25 could grow to over $50,000 by age 65 (assuming 7% annual return).

Disclaimer: This calculator provides estimates for educational purposes only. Actual tax savings depend on your complete financial situation, deductions, credits, and applicable tax laws. 401(k) rules, contribution limits, and tax rates are subject to change. Employer match policies vary by company. Consult with a financial advisor or tax professional for personalized retirement planning advice.