Shariawiz

Retirement Account Calculator

401K, IRA, ROTH, & Other.

There are various types of retirement accounts, which differ from each other in terms of contribution limits, tax implications, and other factors.

A 401(k) is an employer-sponsored retirement plan that allows you to invest a portion of your paycheck into your retirement each time you get paid.
A Traditional IRA is a traditional retirement account. An advantage of a Traditional IRA is that you don’t have to pay taxes on it until you withdraw money from the account in retirement.
A Roth IRA is a retirement account that takes after-tax dollars but isn’t taxed upon distribution when you retire (as long as certain conditions are met)
SIMPLE IRA and 401(k) accounts are designed specifically for small businesses, so that both employers and employees can contribute to the accounts
A SEP (Simplified Employee Plan) IRA is an IRA account designed for employees of small businesses and self-employed individuals

Salary

This is how much your employer pays you each year, preceding taxes and other benefit deductions. Since your contribution and employer match derive from the salary disbursed by your employer, exclude any income originating from sources other than your employer.

Contribution (%)

This represents the percentage of your annual salary you allocate to your account each year. If you are younger than age 50, your annual 401(k) contribution cannot exceed the 401(k) contribution limit set by the IRS. The 401(k) contribution limit for 2025 stands at $23,500. If you are age 50 or over, a 'catch-up' provision enables you to allocate an additional $7,500 into your account. The SECURE 2.0 Act of 2022 enhances the catch-up contribution commencing in 2025 for individuals age 60 to 63 to 50% of the standard contribution limit. Beginning in 2026, catch-up contributions must be structured as Roth contributions for individuals obtaining more than $145,000 (adjusted for inflation) in the previous year. The existing calculator excludes the forthcoming catch-up contribution limit or Roth requirement which await IRS rule finalization and interpretation. Employer contributions remain distinct from the IRS annual contribution limit.
Employees categorized as "Highly Compensated" might encounter additional constraints based on their employer's comprehensive 401(k) participation. If you anticipate your salary to reach $160,000 or more in 2025 or if your salary exceeded $155,000 in 2024, you should consult your employer regarding potential additional contribution constraints.

Employer Match (%)

This indicates the percentage of your annual 401(k) contributions your employer will match by contributing to your account themself. These contributions often possess caps. Please examine the definition for "Employer Match Cap" for additional information. Also note that employer contributions remain separate from the IRS annual contribution limit.

Saved Amount

This reflects the initial balance or present amount you have invested or accumulated in your 401(k).

Age at Retirement

This indicates the age when you intend to retire. This calculator assumes that in your retirement year, you cease making contributions to your 401(k). For instance, if you retire at age 65, your final contribution occurs when you reach 64.

Return Rate (%)

This represents how much you profit from your investments each year, on average, as a percentage of the account balance at the beginning of the year. This calculator assumes your return compounds annually and your deposits occur monthly.