Retirement Contribution Calculator
Calculate your 401(k), IRA, and other retirement contributions with employer matching, tax savings, and long-term growth projections using 2025 contribution limits.
Retirement Planning Calculator
Plan your retirement contributions and see long-term growth potential
Retirement Planning Guide
2025 Contribution Limits
• Under 50: $23,500 annually
• 50 and older: $31,000 annually (includes $7,500 catch-up)
• Total with employer: Up to $70,000 (under 50) or $77,500 (50+)
• Under 50: $7,000 annually
• 50 and older: $8,000 annually (includes $1,000 catch-up)
• Income limits apply for deductibility and Roth eligibility
• SEP-IRA: Up to 25% of compensation or $70,000
• Solo 401(k): Same as regular 401(k) plus 25% of self-employment income
• Great options for self-employed individuals
Retirement Savings Strategies
Always contribute enough to get the full employer match. It's an immediate 100% return on your investment - essentially free money.
Aim to save 10-15% of your gross income for retirement. Start with what you can afford and increase by 1% annually.
Prioritize 401(k), IRA, and HSA contributions for immediate tax benefits and long-term growth.
Spread investments across stocks, bonds, and international markets. Consider target-date funds for automatic diversification.
Boost contributions with salary increases, bonuses, and tax refunds. Automate increases to make it effortless.
Traditional vs. Roth Comparison
- Tax deduction now (pre-tax contributions)
- Tax-deferred growth
- Taxed as ordinary income in retirement
- Required minimum distributions at 73
- Best if you expect lower tax rate in retirement
- No immediate tax deduction (after-tax contributions)
- Tax-free growth and withdrawals in retirement
- No required minimum distributions (Roth IRA)
- More flexibility for early withdrawals
- Best if you expect higher tax rate in retirement
- Contribute to both traditional and Roth accounts
- Provides tax diversification in retirement
- Flexibility to manage tax brackets
- Hedge against future tax rate changes
- Recommended for most people
2025 Retirement Contribution Limits & Guidelines
The IRS sets annual contribution limits for retirement accounts to ensure tax-advantaged savings remain fair and balanced. These limits are adjusted annually for inflation and represent the maximum amounts you can contribute to various retirement accounts in 2025.
401(k) Plans
- Pre-tax contributions reduce current taxable income
- Employer matching doesn't count toward employee limit
- Roth 401(k) has same limits but after-tax contributions
- Loans may be available (up to $50,000 or 50% of balance)
Traditional & Roth IRA
- Traditional IRA: Tax-deductible now, taxed in retirement
- Roth IRA: After-tax contributions, tax-free withdrawals
- No required minimum distributions for Roth IRA
- Roth contributions can be withdrawn anytime penalty-free
SEP-IRA & Solo 401(k)
- Higher contribution limits than traditional IRAs
- SEP-IRA: Simple setup, employer contributions only
- Solo 401(k): Maximum flexibility, loans available
- Both allow catch-up contributions at age 50+
SIMPLE IRA
- Lower administrative costs than 401(k)
- Mandatory employer contributions
- 100 or fewer employees eligible
- 2-year penalty period for early withdrawals
Advanced Retirement Planning Strategies
Tax Diversification Strategy
Don't put all your retirement eggs in one tax basket. A balanced approach across different account types provides flexibility in retirement.
- 60% Traditional 401(k)/IRA (tax-deferred)
- 30% Roth 401(k)/IRA (tax-free)
- 10% Taxable investments (flexibility)
- 40% Traditional 401(k)/IRA
- 50% Roth 401(k)/IRA
- 10% HSA (triple tax advantage)
- Hedge against future tax rate changes
- Flexibility in retirement withdrawal strategy
- Ability to manage tax brackets in retirement
- Protection against legislative changes
Catch-up Contribution Strategy
If you're 50 or older, catch-up contributions allow you to supercharge your retirement savings in your final working years.
Contributing the maximum catch-up amounts for 10 years could result in an additional $610,000 in retirement savings compared to standard contributions.
Employer Match Optimization
Employer matching is free money, but the structure varies. Understanding your plan's specifics can maximize this benefit.
Most common. Employer matches each paycheck based on that period's contribution. Missing a paycheck contribution means missing that match forever.
Employer calculates match based on total annual contributions, regardless of timing.
Employer contributes based on company performance, typically at year-end.
Retirement Income Planning
Plan your retirement withdrawals to minimize taxes and maximize income sustainability.
Withdraw 4% of your portfolio in the first year, then adjust for inflation annually. Historically provides 30+ years of income.
- Bucket 1: 1-3 years expenses in cash/bonds
- Bucket 2: 4-10 years in moderate investments
- Bucket 3: 10+ years in growth investments
- Taxable accounts first (lowest tax impact)
- Traditional 401(k)/IRA (manage tax brackets)
- Roth accounts last (preserve tax-free growth)
Retirement Planning FAQ
Start by contributing enough to get your full employer match, then aim for 10-15% of your gross income. If you can't afford that much initially, start with what you can and increase by 1% each year. The 2025 limit is $23,500 (or $31,000 if you're 50+).
It depends on your current vs. expected future tax rate. Choose traditional if you expect to be in a lower tax bracket in retirement, Roth if you expect higher. Many experts recommend a mix of both for tax diversification. Young workers often benefit more from Roth.
Yes! You can contribute to both, subject to separate annual limits. For 2025, that's $23,500 to 401(k) and $7,000 to IRA (plus catch-up contributions if 50+). However, IRA deductibility may be limited if you have a workplace plan and high income.
Generally, you can withdraw from 401(k) and traditional IRA without penalties starting at age 59½. Roth IRA contributions can be withdrawn anytime penalty-free, but earnings have restrictions. Some exceptions exist for first-time home purchases, education, and hardships.