How does employer matching work?
A typical match is "50% of contributions up to 6% of salary" — meaning if you contribute 6%, your employer adds 3% free. Enter the match percentage (50) and the limit (6) here to model it. Not contributing enough to capture the full match leaves guaranteed 50–100% instant returns on the table — it is almost always the first savings priority.
What is the 4% rule?
A retirement planning guideline: withdrawing about 4% of your balance in the first year, then adjusting for inflation, has historically sustained a portfolio for 30+ years. A $1,000,000 balance supports roughly $40,000/year. It is a rough planning anchor, not a guarantee — sequence-of-returns risk and longer retirements argue for flexibility.
What return should I assume?
A diversified stock-heavy portfolio has averaged about 7% annually before inflation (roughly 10% nominal for the S&P 500 long-term, less after fees and diversification). Conservative planners use 5–6%; entering multiple scenarios in the compare feature shows how sensitive your outcome is to this single assumption.
How much should I contribute?
Common guidance: at minimum, capture the full employer match; a widely-cited overall target is saving 15% of income for retirement including the match. Contribution limits change annually and catch-up contributions apply from age 50. This calculator shows the long-term impact of each percentage point — small increases early compound dramatically. This is an educational projection, not financial advice.
What is vesting, and can I lose the employer match?
Your own contributions are always yours. The employer's contributions may be subject to a vesting schedule, meaning you earn the right to keep them over time — either gradually over several years or all at once on a cliff date. Leave before you are fully vested and you forfeit the unvested portion. If you are considering a move and are close to a vesting milestone, the amount at stake is worth calculating; it occasionally exceeds the pay rise you would be leaving for. Check your plan documents for the exact schedule.
Should I choose a traditional or a Roth 401(k)?
The question is whether you would rather have the tax relief now or later. Traditional contributions reduce taxable income today and are taxed on withdrawal; Roth contributions are made from taxed income and qualified withdrawals are tax-free. The rule of thumb is that Roth tends to suit those who expect a higher tax rate in retirement than they pay now, which often means younger or lower-earning savers. Since nobody knows future tax rates, some savers deliberately split contributions to hedge. A tax adviser can weigh your specific position.