401(k) Contribution Optimizer
Maximize your employer match and optimize your tax strategy. Our intelligent calculator helps you make the most of your 401(k) benefits.
Basic Information
Contribution Settings
Annual contribution: $4,500
Employer Match
e.g., 50% means 50 cents per dollar
e.g., 6% means match up to 6% of salary
Understanding Your 401(k) Options
Traditional 401(k)
- ✓Pre-tax contributions reduce current taxable income
- ✓Tax-deferred growth until withdrawal
- ✓Best for those expecting lower tax rate in retirement
- ⚠Taxed as ordinary income when withdrawn
Roth 401(k)
- ✓After-tax contributions, no immediate tax benefit
- ✓Tax-free growth and withdrawals in retirement
- ✓Best for younger workers or those expecting higher future taxes
- ⚠No reduction in current taxable income
2024 Contribution Limits
Under Age 50
- • Annual limit: $23,000
- • Monthly: $1,916.67
- • Per paycheck (bi-weekly): $884.62
Age 50 and Over
- • Annual limit: $30,500 (includes catch-up)
- • Monthly: $2,541.67
- • Per paycheck (bi-weekly): $1,173.08
Frequently Asked Questions
What is employer matching and how does it work?
Employer matching is free money your company contributes to your 401(k) based on your contributions. Common formulas include 50% match up to 6% of salary, or 100% match up to 3%. Always contribute at least enough to get the full match.
Should I choose Traditional or Roth 401(k)?
It depends on your current tax rate vs expected retirement tax rate. Traditional is better if you expect lower taxes in retirement. Roth is better if you expect higher taxes or want tax-free retirement income. Many experts recommend a mix of both for tax diversification.
What happens if I contribute too much?
Excess contributions must be withdrawn by April 15 of the following year to avoid penalties. Your plan administrator will typically notify you and help process the correction. Excess amounts are subject to double taxation if not corrected timely.
Can I change my contribution percentage anytime?
Most plans allow you to change your contribution percentage at any time, with changes taking effect within 1-2 pay periods. Check with your HR department or plan administrator for specific rules.