401K Calculator
Understanding 401K Plans
A 401K is an employer-sponsored retirement plan with tax advantages. Contributions are typically pre-tax, and many employers match a percentage of your contributions.
Key Points
- 2024 contribution limit: $23,000 (under 50)
- Catch-up (50+): $7,500 additional
- Employer match is free money
- Vesting schedules may apply to employer contributions
💡 Tips
- Always contribute enough to get full employer match
- Increase contribution rate annually
- Consider Roth 401K for tax-free withdrawals
- Avoid early withdrawal penalties