Projected balance · Employer match · Monthly retirement income · 2025 limits
| Account Type | Under 50 | 50+ (catch-up) | |
|---|---|---|---|
| 401k / 403b / 457 | $23,500 | $31,000 | ↑ 2025 |
| IRA (Traditional / Roth) | $7,000 | $8,000 | |
| Total (employee + employer) | $70,000 | $77,500 | |
| HSA (individual / family) | $4,300 / $8,550 | +$1,000 | ↑ 2025 |
Source: IRS Rev. Proc. 2024-25. Limits typically adjust annually for inflation.
A projected balance is a useful planning anchor, but two real-world mechanics can change what you actually end up with: vesting schedules on the employer side, and withdrawal sequencing on the way out.
Vesting: the match isn't fully yours until it vests
Your own contributions are always 100% yours immediately. Employer match, however, usually follows a vesting schedule — common structures are "cliff" vesting (0% ownership until, say, 3 years, then 100%) or "graded" vesting (20% per year over 5 years). If you leave a job before you're fully vested, you forfeit the unvested portion of the match back to the plan. This calculator assumes full vesting throughout, so if you change jobs frequently, your real accumulated match will likely be lower than the projection — check your plan's Summary Plan Description for the exact schedule.
Withdrawal sequencing changes how long the balance lasts
The 4% rule used for the monthly income estimate assumes a diversified portfolio and a fixed withdrawal rate adjusted for inflation — it does not account for which specific accounts you draw from first. Retirees who hold a mix of Traditional 401k, Roth, and taxable brokerage accounts often extend how long their savings last by withdrawing from taxable and Traditional accounts strategically to manage their tax bracket, saving Roth withdrawals (tax-free, no RMDs if rolled to a Roth IRA) for later years or estate planning. This sequencing decision is highly individual — a fee-only financial planner or CPA can model it against your specific accounts and tax situation.
In 2025, employees can contribute up to $23,500 to a 401k (up from $23,000 in 2024). Workers aged 50 and older can add a catch-up contribution of $7,500, for a total of $31,000. The combined employee + employer limit is $70,000. Always try to at least contribute enough to capture your full employer match.
Traditional 401k contributions are pre-tax (reduce your taxable income now, taxed at withdrawal). Roth 401k contributions are post-tax (no deduction now, but withdrawals in retirement are tax-free). Roth is generally better if you expect to be in a higher tax bracket in retirement. Many employers offer both options.
Most employers match a percentage of your contributions up to a salary cap. For example, '100% match up to 6% of salary' means if you earn $80,000 and contribute 6% ($4,800), your employer adds another $4,800 — free money. Never leave employer match on the table. It's an instant 100% return on matched dollars.
The 4% rule states you can safely withdraw 4% of your retirement portfolio in Year 1, then adjust for inflation annually, with a high probability your savings will last 30+ years. On a $1 million portfolio, that's $40,000/year or $3,333/month. This calculator uses the 4% rule to estimate your monthly retirement income.
You can withdraw from your 401k penalty-free starting at age 59½. Withdrawals before 59½ incur a 10% early withdrawal penalty plus income tax. Required Minimum Distributions (RMDs) must begin at age 73 (as of 2023 SECURE 2.0 Act). Roth 401k accounts are also subject to RMDs unless rolled over to a Roth IRA.