401K Match Calculator

How to Use the 401(k) Match Calculator

This guide will walk you through using the 401(k) Match Calculator to determine your annual contributions and your employer’s matching contributions. Follow these steps to get started:

Step 1: Enter Your Annual Salary

• Locate the field labeled Annual Salary ($).
• Enter your annual salary amount in dollars. Ensure this value is within the range of $1,000 to $1,000,000, as specified by the calculator’s validation rules.

Step 2: Input Your Contribution Percentage

• Find the field labeled Your Contribution (%).
• Input the percentage of your salary you wish to contribute to your 401(k). This should be a value between 0% and 100% and can include decimal increments of 0.1%.

Step 3: Select Employer Match Type

• Go to the field labeled Employer Match Type.
• Select your employer’s match type from the provided options:
• Dollar for dollar up to percentage
• Tiered matching

Step 4: Enter Employer Match Percentage

• Find the field labeled Employer Match Percentage (%).
• Enter your employer’s matching percentage. This percentage should be between 0% and 100%, with increment steps of 0.1%.

Step 5: Define the Annual Contribution Limit

• Locate the field labeled Annual Contribution Limit ($).
• Specify the maximum annual amount you are allowed to contribute to your 401(k). This must be within the range of $1,000 to $100,000.

Results: Understanding the Output

Upon entering the required fields, the calculator will provide you with several key results:

• Your Annual Contribution: This is the lower value between your calculated percentage of salary contribution and the annual contribution limit, displayed as a currency value.
• Employer Match Amount: Represents the lesser of your contribution or the maximum match possible based on your salary, also in currency.
• Total Annual Contribution: A sum of your contribution and your employer’s match, shown as currency.
• Effective Match Percentage: This is the percentage of your salary represented by the employer’s matching contributions.
• Total Contribution as Percentage of Salary: This indicates your total contributions (yours and your employer’s) expressed as a percentage of your salary.

Utilize this detailed information to make informed decisions about your retirement savings and to understand the full extent of your employer’s 401(k) match offerings.