Quick answer: A 35-year-old earning $80,000 who puts in 10% with a 50% match up to 6%, starting from $25,000 with 3% raises and a 7% return, reaches about $1,538,404 at 65.
How it's calculated
Each year you contribute your percentage of salary, up to the 2025 limit of $23,500 ($31,000 from age 50, $34,750 at ages 60 to 63). The employer adds its match – for example 50% of what you put in, on up to 6% of salary – and the total from both may not exceed $70,000 plus catch-ups.
The balance grows at the return you enter, with each year's contributions added at the end of the year; salary rises by the yearly increase. Limits are kept at today's values, which keeps the projection in roughly today's dollars for contributions. Payroll contributions really arrive through the year, so a month-by-month projection shows a somewhat higher balance.
A match is part of your pay: contribute at least enough to get all of it. Traditional 401(k) money is taxed when withdrawn; Roth 401(k) money is taxed now and withdrawn tax-free. Compare with the US traditional IRA calculator and plan withdrawals with the US RMD calculator.
Worked examples
- $80,000 × 10% = $8,000; match 50% × min(8,000, 4,800): $2,400 employer in year 1
- Age 52, $250,000 salary, 15%: capped at $31,000
2025 401(k) limits
| Limit | Amount |
|---|---|
| Employee deferral | $23,500 |
| Catch-up, age 50+ | $7,500 |
| Catch-up, ages 60–63 | $11,250 |
| Total employee + employer | $70,000 |
Frequently asked questions
What if I take money out early?
Withdrawals before age 59½ are usually taxed and charged a 10% additional tax, with some exceptions.
What is vesting?
Employer contributions may vest over several years; if you leave earlier you can lose part of the match. Your own contributions are always yours.
Can I keep a 401(k) if I move to the Gulf?
Yes, the account stays invested in the US. Check how your new country of residence treats it and whether your plan restricts non-US addresses.
What is an employer match?
Money your employer adds when you contribute, up to a limit set by the plan. If your plan matches up to 4% of salary, contributing less than that leaves part of your pay package unclaimed.
What is the difference between a traditional and a Roth 401(k)?
Traditional contributions go in before tax and withdrawals are taxed later. Roth contributions go in after tax and qualified withdrawals are tax-free.
Why does a small return change the result so much?
Returns compound over decades, so a difference of 1% a year can change the final balance by a large amount. Try a lower return as well, to see a more cautious result.