Retirement Savings Calculator 2025 | 401(k), Traditional IRA & Roth IRA Projections

Tax Treatment: Retirement accounts differ primarily in when you pay taxes. Traditional 401(k) and Traditional IRA use pre-tax contributions—money goes in before taxes, reducing your taxable income today. Investments grow tax-deferred, and withdrawals in retirement are taxed as ordinary income at your then-current rate. This benefits you if you expect lower tax rates in retirement. Roth IRA and Roth 401(k) use after-tax contributions—you pay taxes now, but qualified withdrawals (after age 59½ and 5 years of account ownership) are completely tax-free, including all growth. Roth benefits you if you expect higher tax rates in retirement or want tax-free income streams.

Employer Match: Many 401(k) plans offer employer matching—free money added to your account based on your contributions. Common formulas: 50% match up to 6% of salary (if you contribute 6%, employer adds 3%) or 100% match up to 3% (dollar-for-dollar). The match is immediate compensation—if your employer matches $3,000/year and you don't contribute enough to capture it, you're effectively turning down a $3,000 raise. Always contribute at least enough to get the full match before prioritizing other savings goals (IRA, taxable accounts). Vesting schedules determine when matched funds become yours (immediate, 3-year cliff, or 6-year graded); unvested funds are forfeited if you leave early.

Contribution & Catch-Up Limits: The IRS sets annual contribution limits adjusted for inflation. For 2025, 401(k) employee contributions are capped at $23,500; Traditional and Roth IRAs at $7,000. If you're age 50+, catch-up contributions allow extra deposits: +$7,500 for 401(k) (total $31,000), +$1,000 for IRAs (total $8,000). Employer matches don't count toward employee limits but are subject to overall 401(k) limits (~$70,000 total including all sources). Exceeding limits triggers penalties—excess contributions are taxed twice (when deposited and withdrawn) unless corrected by tax deadlines.

Income Limits & Eligibility: Roth IRAs phase out for high earners: 2025 limits start at $146,000 (single) / $230,000 (married filing jointly) and eliminate eligibility at $161,000 / $240,000. Traditional IRA deductibility phases out if you (or your spouse) have a workplace retirement plan and earn above thresholds (~$77,000–$87,000 single, ~$123,000–$143,000 married). High earners can still contribute to Traditional IRAs non-deductibly and convert to Roth (backdoor Roth IRA). 401(k) plans have no income limits—anyone with access can contribute. Always check current-year IRS limits and consult a tax advisor if near phase-out ranges.

Withdrawal Rules: Withdrawals before age 59½ typically incur a 10% early withdrawal penalty plus ordinary income tax (Traditional) or tax on gains (Roth). Exceptions exist for first-home purchase ($10,000), qualified education, disability, and substantially equal periodic payments. Traditional 401(k)/IRAs require minimum distributions (RMDs) starting at age 73 (2025 rules)—you must withdraw and pay tax on a percentage each year. Roth IRAs have no RMDs during the owner's lifetime, allowing tax-free growth indefinitely. Roth 401(k)s require RMDs but can be rolled into Roth IRAs to avoid them.

Investment Return vs Inflation: Nominal returns (e.g., 7% annual growth) don't account for inflation (~2–3% historically). Real return = nominal return − inflation. A 7% nominal return with 3% inflation yields ~4% real growth—meaning $100,000 in 30 years may only have the purchasing power of ~$40,000 today. When setting retirement goals, always adjust for inflation to ensure your balance maintains purchasing power. This calculator shows both nominal and inflation-adjusted (real) results to help you plan accurately.

This calculator projects your retirement account balance under various scenarios—401(k), Traditional IRA, or Roth IRA—accounting for contributions, employer match, growth, and inflation. Follow these steps:

1. Choose Plan Type & Enter Ages: Select 401(k), Traditional IRA, or Roth IRA (affects contribution limits and employer match availability). Enter your current age, target retirement age, and current account balance (if any). The calculator projects growth over the years until retirement.
2. Set Employee Contribution: Enter your contribution as a percentage of salary (e.g., 6%) or a fixed dollar amount (e.g., $500/month). For 401(k), percentages auto-adjust with salary growth; for IRAs, fixed amounts are common since there's no payroll deduction. The calculator enforces IRS annual limits—contributions exceeding limits are flagged.
3. Add Employer Match (401(k) only): If applicable, enter your employer's match formula (e.g., 50% match up to 6% of salary, capped at $3,000/year). The calculator adds matched funds annually, amplifying growth. Employer contributions don't count toward your employee limit but are subject to overall 401(k) limits.
4. Set Annual Salary Growth: Enter expected annual raises (e.g., 2–3% for inflation + merit increases). Salary growth affects percentage-based contributions—higher future salaries allow higher dollar contributions (up to IRS limits). For fixed-dollar contributions, salary growth still matters for employer match calculations.
5. Enter Expected Annual Return: Your anticipated investment return (e.g., 6–8% for diversified portfolios, 4–5% for conservative bonds). This is the average annual growth rate applied to your balance. Be conservative—historical stock market returns averaged ~10%, but 7–8% is safer for planning. Lower returns (3–5%) for risk-averse portfolios.
6. Set Contribution Frequency & Timing: Choose monthly, quarterly, or annual contributions and whether they're deposited at the beginning or end of each period. Beginning-of-period contributions compound slightly more (one extra period of growth). Most 401(k) contributions are monthly (paycheck deductions); IRAs are often annual lump sums.
7. Adjust for Inflation (Optional): Enter expected inflation (2–3% typical) to see real (inflation-adjusted) purchasing power at retirement. A $1M balance in 30 years may only be worth ~$400,000 in today's dollars at 3% inflation. Use inflation-adjusted results for accurate goal-setting.
8. Add Catch-Up Contributions (Optional): If you're age 50+, the calculator automatically allows catch-up contributions when you reach eligibility. You can also enter one-time contributions (e.g., $10,000 bonus deposit) at specific ages.
9. Review Results & Compare Scenarios: View projected balance at retirement, total contributions, investment growth, employer match impact, and year-by-year breakdown. Use tabs to compare Traditional vs Roth outcomes. Adjust inputs to model "what-if" scenarios (earlier retirement, higher contributions, different return rates).

The calculator updates instantly as you change inputs. Experiment with different strategies to find the optimal plan for your financial goals and risk tolerance.

Maximizing retirement savings requires disciplined contributions, tax optimization, and minimizing fees. Here are proven strategies:

• Capture 100% of Employer Match: The match is the highest guaranteed return—often 50–100% instant gains. If your employer matches 50% up to 6% of salary, contribute at least 6% to get the full $3,000+ in free money. Not capturing the match is like declining a raise. Make this your top savings priority before other goals.
• Automate Annual Step-Ups: Increase contributions by 1–2% per year, especially after raises. Raising from 6% to 8% over 2 years adds $2,000–$4,000 annually with minimal lifestyle impact since raises absorb the increase. Many 401(k) plans offer auto-escalation features—set it and forget it.
• Follow Tax Order of Operations: Prioritize accounts by tax efficiency: (1) Contribute to 401(k) up to full employer match, (2) Max out HSA if eligible (triple tax advantage), (3) Max out IRA (Roth or Traditional based on income/tax rate), (4) Max out 401(k) to $23,500 limit, (5) Use taxable brokerage for remaining savings. This order maximizes tax benefits and free money.
• Keep Fees Low: High fees compound negatively—1% expense ratios can cost $100,000+ over 30 years on a $500,000 portfolio. Use low-cost index funds (Vanguard Total Market, Fidelity 500 Index) with expense ratios under 0.1%. Avoid actively managed funds charging 1–2%—only 10% beat the market long-term after fees.
• Rebalance Annually: Market fluctuations shift your asset allocation (e.g., stocks grow faster, increasing equity percentage). Rebalance yearly to maintain target allocations (e.g., 70% stocks / 30% bonds) by selling winners and buying underperformers. This forces you to "buy low, sell high" and manages risk.
• Roth vs Traditional Decision: Choose Traditional if your current tax rate is high and you expect lower rates in retirement (maximizes deduction today). Choose Roth if you're early career (low tax rate now), expect higher future rates, or want tax diversification. Many experts recommend hedging: split contributions 50/50 or max Roth IRA + Traditional 401(k).
• Avoid Pre-Retirement Withdrawals: Early withdrawals trigger 10% penalties + taxes, and you lose decades of compounding. A $10,000 withdrawal at age 35 costs $20,000+ in lost growth by age 65. Use emergency funds instead. If you must withdraw, explore 72(t) equal periodic payments or hardship exceptions to avoid penalties.
• Maximize Catch-Up Contributions: At age 50+, contribute the extra $7,500 to 401(k)s ($31,000 total) and $1,000 to IRAs ($8,000 total). This accelerates savings during peak earning years when kids are independent and mortgages are paid down. Catch-up contributions can add $100,000+ to your final balance over 15 years.
• Use Windfalls Wisely: Deposit bonuses, tax refunds, inheritances, and raises directly into retirement accounts. A $10,000 bonus invested at age 40 grows to $43,000+ by age 65 at 7% returns. Treat unexpected income as "found money" for retirement rather than lifestyle inflation.

The most powerful combination: capture the full match, automate step-ups, use tax-advantaged accounts, choose low-cost funds, rebalance annually, and stay invested. Time + consistency + tax efficiency = retirement success.

After entering your retirement parameters, the calculator provides a detailed projection of your account growth. Here's how to interpret each section:

• Projected Balance (Nominal vs Real): Nominal balance is the dollar amount in your account at retirement (e.g., $1M). Real (inflation-adjusted) balance shows purchasing power in today's dollars—what $1M will actually buy given expected inflation. At 3% inflation over 30 years, $1M nominal = ~$412,000 real. Always plan using real values to avoid undersaving.
• Total Contributions vs Investment Growth: Total contributions is the sum of your deposits + employer match over the entire period. Investment growth is gains from compounding—the "free money" from returns. Over long periods (30+ years), investment growth often equals or exceeds contributions due to exponential compounding. A 50/50 split is common; if contributions dominate, consider higher return rates or longer timelines.
• Employer Match Impact: For 401(k)s, this shows cumulative dollars added by your employer. A 50% match on 6% salary contributions can add $100,000–$200,000 over 30 years depending on salary and growth. This amplifies your effective savings rate—contributing 6% with a 3% match = 9% total savings rate.
• Effective Savings Rate: Your employee contribution + employer match as a percentage of salary. Example: 6% employee + 3% match = 9% effective rate. Financial advisors recommend 15–20% total savings rate for comfortable retirement. If below 15%, increase contributions or plan to work longer / save more later.
• Year-by-Year Breakdown Table: Detailed annual view: starting age, salary, employee contribution, employer match, investment gains, and ending balance for each year. This reveals compounding acceleration—early years show small gains, later years show massive jumps. Export as CSV or PDF to track against actual results or adjust projections as life changes.
• Growth Over Time Charts: Visual representation of balance trajectory (line chart) and composition (stacked area showing contributions vs growth). Charts reveal inflection points—when compounding overtakes contributions (typically around the halfway mark of long timelines). Use these to motivate consistency and visualize exponential growth.
• Assumptions Callouts: The calculator assumes constant annual returns (actual returns vary year-to-year), continuous employment (no career breaks), current IRS contribution limits (limits increase with inflation), and no mid-stream withdrawals. If any assumptions don't match your situation, adjust inputs or model multiple scenarios (conservative 5% return, optimistic 9% return).

These results are projections, not guarantees. Actual outcomes depend on market performance, employment continuity, tax law changes, and life events. Use this calculator for goal-setting and annual planning, then adjust inputs as your situation evolves. Always cross-check with your actual account statements and consult a financial advisor for personalized advice.

Real-world examples demonstrate how contribution strategies, employer match, and time horizons impact retirement outcomes:

These frequent errors can cost tens to hundreds of thousands of dollars over a career. Avoid them to maximize your retirement security:

• Not Capturing Full Employer Match: If your employer matches 50% up to 6% and you only contribute 3%, you're forfeiting $1,500-$3,000+ per year in free money—equivalent to declining a raise. This mistake alone can cost $150,000+ over 30 years when accounting for lost match and compounding. Always contribute at least enough to get the full match before any other savings goals.
• Delaying Contributions Until "Later": Waiting from age 25 to 35 to start saving costs ~$800,000 at retirement (same contributions, 10 fewer years of compounding). "I'll start next year" repeated for 5-10 years is financially catastrophic. Start immediately with any amount—even $50/month at 25 beats $500/month starting at 45.
• Cashing Out 401(k)s When Changing Jobs: Withdrawing a $30,000 401(k) at age 35 costs $6,000-$11,000 in taxes and penalties immediately, plus $200,000+ in lost compounding by age 65. Always roll over to an IRA or new employer's 401(k)—never cash out. The short-term cash isn't worth the long-term devastation.
• Ignoring Roth vs Traditional Optimization: High earners in peak tax years (35-45% brackets) who use only Roth lose $5,000-$15,000/year in tax deductions—$150,000-$450,000 over a career. Low earners who use only Traditional pay unnecessary taxes on Roth-eligible contributions. Use Traditional when brackets are high (30%+), Roth when low (22% or less), or split 50/50 for tax diversification.
• Paying Excessive Fees Without Realizing It: A 1.5% expense ratio vs 0.1% costs $250,000+ on a $1M portfolio over 30 years. Many investors don't check fund fees or 401(k) administrative costs. Always review expense ratios (aim for <0.2%), compare your 401(k)'s fees to industry averages (0.5-1% total is typical, <0.5% is excellent), and switch to low-cost index funds when possible.
• Being Too Conservative or Aggressive for Your Age: Age 30 investors in 100% bonds miss out on decades of stock market growth—a 4% bond portfolio vs 8% stocks costs $1,000,000+ over 35 years on the same contributions. Conversely, age 60 investors in 100% stocks risk losing 40-50% right before retirement with no recovery time. Use age-based allocation: (100 - your age)% in stocks, rebalance annually, shift gradually to bonds as you near retirement.
• Not Increasing Contributions With Raises: If you earn $60,000 contributing 6% ($3,600), then get a $10,000 raise but don't increase contributions, you're leaving $10,000 × 6-10% × 30 years = $150,000-$250,000 on the table. Set up auto-escalation to increase contributions 1% per year, or manually boost contributions by 50% of each raise (e.g., $10,000 raise = increase contributions by $5,000/year from 6% to 14.3%).
• Forgetting About Catch-Up Contributions After Age 50: The extra $7,500/year for 401(k)s and $1,000/year for IRAs from ages 50-65 adds $200,000-$300,000 to your balance. Many people don't realize they're eligible or forget to increase contributions when they turn 50. Set a reminder for your 50th birthday to max out catch-ups immediately—this is peak earning years, kids are often independent, and mortgages may be paid off.
• Taking Loans Against 401(k)s Casually: 401(k) loans seem harmless (borrowing from yourself), but you lose compounding on the borrowed amount, pay interest with after-tax dollars, and risk double-taxation if you don't repay before leaving your job. A $20,000 loan at age 40 costs $60,000+ in lost growth by 65. Use emergency funds or low-interest personal loans instead—protect retirement accounts.
• Failing to Rebalance or Adjust Asset Allocation: A 60/40 stock/bond portfolio that drifts to 80/20 after a bull market exposes you to excessive risk right before retirement. Not rebalancing for 10+ years can result in losing 30-50% in a market crash with no time to recover. Rebalance annually or when allocations drift 5%+ from targets—this forces you to sell high (stocks) and buy low (bonds), maintaining your intended risk level.
• Underestimating Retirement Needs & Inflation: Planning to retire on $1 million without adjusting for inflation means that $1M may only have $400,000 in purchasing power in 30 years at 3% inflation. Similarly, underestimating healthcare costs ($300,000+ per couple in retirement) or longevity (living to 90-95 requires 25-30 years of income, not 15-20) leads to running out of money. Always plan in real (inflation-adjusted) dollars and assume 25-30 year retirement spans.
• Not Diversifying Across Account Types: Having 100% of retirement savings in Traditional 401(k) means 100% of withdrawals are taxable—if tax rates rise or you're in a higher bracket than expected, you lose flexibility. Mix Traditional (tax deduction now), Roth (tax-free later), and HSA (triple tax advantage) to create tax diversification. This gives you control over taxable income in retirement by choosing which accounts to draw from based on annual tax situation.

Avoiding these mistakes requires upfront education, annual reviews, and disciplined execution. The cost of inaction or errors compounds over decades—what seems like a small oversight today (not capturing match, delaying 5 years, paying 1% extra fees) becomes $100,000-$500,000 in lost retirement wealth. Check your current strategy against this list and make corrections immediately—every year matters.