1. What is the 401k Contribution Calculator?

The 401k Contribution Calculator helps you estimate your total annual 401k contributions including both your salary percentage contributions and any employer matching contributions for the year 2025.

2. How Does the Calculator Work?

The calculator uses the following formula:

Where:

• \( Salary \) — Your annual salary in USD
• \( Percentage \) — Your contribution percentage (as whole number)
• \( Employer\ Match \) — Your employer's annual matching contribution

Explanation: The calculator first calculates your contribution based on your salary and percentage, then adds any employer matching funds.

3. Importance of 401k Contributions

Details: Understanding your total 401k contributions helps with retirement planning and ensuring you're maximizing employer matching benefits.

4. Using the Calculator

Tips: Enter your annual salary, contribution percentage (as whole number), and any employer matching funds. All values must be positive numbers.

5. Frequently Asked Questions (FAQ)

Q1: What are the 2025 401k contribution limits?
A: For 2025, the employee contribution limit is $23,000 ($30,500 for those 50+). The total limit including employer contributions is $69,000.

Q2: How does employer matching typically work?
A: Many employers match 50-100% of contributions up to 3-6% of salary. Check your specific plan details.

Q3: Should I contribute more than my employer matches?
A: It's generally recommended to contribute at least enough to get full employer matching, then consider contributing more if possible.

Q4: Are 401k contributions tax-deductible?
A: Traditional 401k contributions are made pre-tax, reducing your taxable income. Roth 401k contributions are made after-tax.

Q5: How often should I review my 401k contributions?
A: Review at least annually, or whenever your salary changes significantly, to ensure you're optimizing your contributions.