Project how much your 401(k) will grow by retirement with employer matching and compound interest.
A 401(k) is an employer-sponsored retirement savings plan that allows employees to contribute a portion of their pre-tax salary. Contributions grow tax-deferred until withdrawal in retirement.
| Category | 2024 | 2025 |
|---|---|---|
| Employee Under 50 | $23,000 | $23,500 |
| Catch-Up (50+) | $7,500 | $7,500 |
| Total (incl. employer) | $69,000 | $70,000 |
A common match formula is "50% of contributions up to 6% of salary." If you earn $75,000 and contribute 6% ($4,500), your employer adds 50% of that ($2,250). That's free money — always contribute at least enough to get the full match.
Thanks to compound interest, starting at age 25 vs. 35 can nearly double your retirement balance. Every year you delay costs you significantly in lost compounding.