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US 401(k) Tax Calculator 2025

Calculate retirement contributions, employer match, and tax savings

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💰 Income & Contribution

📊 Contribution Method

Use percentage for automatic calculation

Ages 50+ can contribute an extra $7,500 per year

🤝 Employer Match

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

📋 Tax Information

💵 Summary

Enter your details and calculate

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2025 401(k) Contribution Limits

👤 Individual Contributions

Under 50 Years: $23,000
Age 50 & Older: $30,500
Catch-up Amount: $7,500

💼 Total Contribution Limit

Employee + Employer: $69,000
With Catch-up (50+): $76,500

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 $23,000 limit ($30,500 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 73
  • 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.