Project your 401(k) retirement balance with employer match, 2024 IRS contribution limits, and catch-up contributions for investors age 50 and older. Free, no sign-up required.
Your employer contributes $2,400 per year in matching funds — $84,000 total over 35years before growth. That's free money added to your balance at zero cost to you.
A 401(k) is an employer-sponsored retirement account where you contribute pre-tax dollars directly from your paycheck. Pre-tax means the contribution reduces your taxable income today — if you earn $80,000 and contribute $6,000, you only pay income tax on $74,000 that year. Your investments then grow tax-deferred until you withdraw in retirement, when withdrawals are taxed as ordinary income.
The employer match is the most valuable part most employees underuse. The most common structure is 50% match up to 6% of salary — meaning your employer adds $0.50 for every $1 you contribute, up to 6% of your paycheck. On an $80,000 salary that is $2,400 of free money per year. Employees who contribute below the match ceiling are leaving guaranteed compensation on the table. No investment in the market offers a guaranteed 50% return on day one.
The 2024 employee contribution limit is $23,000 per year — $30,500 if you are age 50 or older, thanks to the catch-up contribution provision. Employer matching contributions are on top of this and do not count toward your personal limit. The combined limit including employer contributions is $69,000 in 2024. Unlike a Roth IRA, there are no income limits on 401(k) contributions — anyone with access to a plan can contribute up to the IRS maximum.
The formula uses annual compounding — the standard for retirement projections. The employer match is calculated as min(your%, match ceiling%) × salary × match rate. This means contributing below the match ceiling costs you free money. Employer contributions are not subject to the $23,000 IRS limit — only your employee contributions are capped.
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