Guide
Optimize your 401(k) with our free calculator. Model employer matching, contribution increases, and investment growth to see how your workplace retirement account grows toward your goals.
Maximizing Employer Matching
Employer matching is free money — contribute at least enough to capture the full match before funding other accounts. A 50% match on 6% of salary is an immediate 50% return.
Vesting schedules may require years of employment before matched funds are fully yours. Check your plan documents.
Contribution Limits and Catch-Up
The annual 401(k) limit is $23,000 for 2024–2025 ($30,500 if age 50+). Increasing contributions by 1% per year often goes unnoticed in take-home pay but dramatically boosts retirement balances.
Traditional 401(k) contributions reduce taxable income now; Roth 401(k) contributions grow tax-free if your plan offers them.
Key Takeaways
- Always capture the full employer match first.
- Increase contributions 1% annually until you hit your target rate.
- Low-cost index funds beat expensive actively managed options.
- Do not cash out when changing jobs — roll over to an IRA or new 401(k).