'What The Heck Is A 401k?' And Other Investing Questions You're Too Embarrassed To Ask -Forbes
- Contributions are made at the end of the period.
- The maximum pre-tax amount that you are allowed to contribute to this plan is capped annually by the IRS. This calculator will not check to see if you are over-contributing! That is a function of your plan administrator. Click this link for up to date details and limits.
If permitted by your 401(k) plan, participants who are age 50 or over at the end of the calendar year can also make catch-up contributions. The rules relating to catch-up contributions are complex and your limits may differ according to provisions in your specific plan. You should contact your plan administrator to find out whether your plan allows catch-up contributions and how the catch-up rules apply to you.
- What will the approximate value of your 401(k) be in 10 years?
- The assumptions:
- You currently have $20,000.00
in your 401(k). Your annual salary is $50,000.00 and you hope to receive a 3% annual salary increase. You are contributing 6% of your salary to the plan (invested monthly in a mutual fund) and your employer will match your contribution 100% up to a maximum of 6% of your annual salary. They are matching that on an annual basis. The plan has been earning an average of 11% (compounded annually) per year, and you expect that to continue.
- 20,000 (or 20000) =Current 401(k) Balance
- 50,000 (or 50000) =Current Annual Income
- 3=Expected Annual Salary Increase
- 6=Percent of Salary Withheld for 401(k) (Monthly box selected)
- 100 and 6 respectively=Employer Match (Annually box selected)
- 10=Years to Fund 401(k)
- 11=Average Annual Interest Rate Earned (Annually box selected)
Press View Schedule You will have $ 171,725.44 in your 401(k) in 10 years (assuming all variables are met, of course).
*After you view the schedule and find out how much you'll save in your 401(k), use one of my Retirement Calculators to see if that alone will be enough.FAQ:
I welcome your links to MyCalculators.comTo link to THIS page, please copy the following HTML code and paste it into your page.
<a href="https://www.mycalculators.com/ca/401kcalcm.html" title="401(k) Calculator" target="_top">401k Calculator |- MyCalculators.com</a>It will appear on your page as: 401k Calculator |- MyCalculators.com