403 B Calculator

Using the 403(b) Retirement Calculator

The 403(b) Retirement Calculator is a useful tool for planning your retirement savings and understanding how much you can accumulate by the time you retire. Follow the step-by-step guide below to effectively use the calculator and make the most of its features.

Step 1: Entering Your Personal Information

• Current Age: Input your current age in years. Make sure it’s between 18 and 85 as required.
• Retirement Age: Provide the age at which you plan to retire. It should be between 55 and 85.
• Current Annual Salary ($): Enter your current annual salary. The value must be between $1,000 and $500,000.

Step 2: Entering Your Current 403(b) Details

• Current 403(b) Balance ($): Fill in your existing balance in your 403(b). The minimum value should be 0.
• Your Contribution (%): Specify the percentage of your annual salary you plan to contribute towards your 403(b). It should be between 0% and 100%.
• Employer Match (%): Enter the percentage of your salary that your employer matches. The range is 0% to 100%.
• Employer Match Limit (%): State the limit on the employer match as a percentage of your salary, again between 0% and 100%.

Step 3: Setting Assumptions

• Expected Annual Return (%): Indicate the annual return rate that you expect from your investments, ranging from 0% to 20%.
• Annual Salary Increase (%): Enter the expected annual increase in your salary as a percentage, which should be between 0% and 10%.

Step 4: Understanding the Results

• Years Until Retirement: The calculator computes the number of years left until your retirement based on the ages provided.
• Your Annual Contribution: The amount you contribute annually is calculated as a percentage of your salary.
• Employer Annual Contribution: The calculator determines the amount contributed by your employer, considering any applicable limits.
• Total Annual Contribution: This figure represents the combined total of your and your employer’s contributions annually.
• Projected Balance at Retirement: Using the provided assumptions and inputs, the calculator projects the total balance you would have in your 403(b) by retirement.
• Total Contributions Over Time: This provides a sum of your contributions including starting balance and annual inputs leading up to retirement.
• Total Investment Earnings: It highlights the earnings gained from your investments over time, subtracting total contributions from the projected balance.

By carefully entering your information and assumptions into the 403(b) Retirement Calculator, you can gain valuable insights into your potential retirement savings and make informed decisions to improve your financial security for the future.