401(k) and IRA accumulation guidelines
For 2024, the IRS elective deferral limit for employee 401(k) and 403(b) contributions is $23,000 ($23,500 in 2025), plus an extra $7,500 catch-up contribution for individuals aged 50 or older.
Pre-tax contributions reduce your current year adjusted gross income (AGI), allowing funds to compound tax-deferred until withdrawn in retirement.
Worked example: 401(k) retirement projection
A 30-year-old starting with a $25,000 401(k) balance who contributes $600 per month ($350 employee + $250 employer match) at an average return of 5.5% net of fees accumulates approximately $630,000 by age 65.
Using the 4% systematic distribution rule, this portfolio provides an estimated annual retirement income of $25,200 ($2,100 per month).
Inputs for the us pension calculator
Elective Deferral & Match
Enter your personal contribution and employer matching funds, ensuring total deposits stay within IRS limits.
Inflation & Rate of Return
Adjust assumed annual returns and inflation to view both nominal and real purchasing power.
CALCULATOR QUESTIONS
US pension calculator questions
What is the early withdrawal penalty for 401(k) and IRA?
Distributions taken before age 59½ are generally subject to ordinary income tax plus a 10% IRS early distribution penalty under IRC § 72(t).
What is the total IRS contribution limit under § 415(c)?
The total combined employee and employer contribution limit for defined contribution plans is $69,000 in 2024 ($70,000 in 2025).
What are Required Minimum Distributions (RMDs)?
Under the SECURE 2.0 Act, individuals must begin taking taxable RMDs from traditional pre-tax retirement accounts starting at age 73 (rising to age 75 in 2033).