See how much your 401(k) will grow and how employer match accelerates your retirement savings.
If your employer matches contributions up to 4% of salary, contributing at least 4% is effectively a 100% instant return on that money — the best guaranteed return available anywhere. Not capturing the full employer match is one of the most common and costly financial mistakes.
Employee contribution limit: $23,000/year. If age 50+, catch-up contribution limit: $30,500/year. Total limit (employee + employer): $69,000/year. Contributing the maximum early in the year maximizes the time your money compounds.
Traditional 401(k) contributions reduce your taxable income today but withdrawals are taxed in retirement. Roth 401(k) contributions are after-tax, but withdrawals are completely tax-free in retirement. Many experts recommend Roth for younger workers in lower tax brackets.