Contributions
Money you elect to put into the plan through payroll deductions, subject to the plan and applicable tax rules.
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401k Calculator & Guide
A 401(k) is an employer-sponsored retirement plan that can help you save for the future through payroll contributions, potential employer contributions and investments.
A 401(k) is a type of defined contribution retirement plan. Eligible employees can generally direct part of their compensation into an individual account through payroll deductions.
Depending on the plan, an employer may also contribute money through matching or other employer contributions. The money in the account can be invested in the options available through the plan.
Unlike a pension that promises a specified retirement benefit, a 401(k) account's future value depends on contributions, investment performance and applicable fees.
Learn how a 401(k) works →Your plan connects payroll contributions, employer contributions and investments inside one retirement account.
You choose an amount or percentage of your pay to contribute if you are eligible under your employer's plan.
Some plans provide matching or other employer contributions according to the plan's terms.
Your account can be invested among the options offered by your particular retirement plan.
Contributions, investment gains or losses and applicable fees can affect the value of your account.
Understanding each part makes it easier to read your plan information and make sense of your retirement account.
Money you elect to put into the plan through payroll deductions, subject to the plan and applicable tax rules.
Explore contributions →Your employer may match contributions or make other contributions depending on your plan.
Understand employer matching →Your own contributions are fully vested, while some employer contributions may be subject to a vesting schedule.
Learn about vesting →Your plan may offer funds and other investment options from which you can select according to its rules.
Explore 401(k) investing →Investment and administrative fees can affect the value of a defined contribution retirement account.
Understand 401(k) fees →Your plan's beneficiary rules determine who may receive your account after your death.
Learn about beneficiaries →Some 401(k) plans offer both pre-tax and designated Roth contribution options.
Traditional 401(k) contributions are generally made through pre-tax elective deferrals. Federal income tax treatment generally occurs when money is distributed, subject to applicable rules.
If your employer's plan offers a designated Roth account, Roth contributions are included in gross income when contributed. Qualified distributions can generally be tax-free.
Your contribution rate, employer contribution and the rules of your specific plan all matter when evaluating your savings.
Federal rules limit certain employee elective deferrals. The applicable limits can change over time.
See contribution limits →A plan may provide matching contributions based on the employee's elective deferrals and the plan's formula.
Understand the match →Explore different contribution, employer match and growth assumptions with our interactive calculators.
Open 401(k) calculators →Federal rules establish important requirements, but your employer's plan document determines many of the details that apply to you.
Your Summary Plan Description and other plan documents can explain eligibility, contribution options, matching formulas, vesting, investment choices and distribution procedures.
Two employees at different companies can have different contribution options, employer matching formulas, investment menus, fees and vesting provisions.
Before making decisions based on a general explanation, review your plan documents and the information supplied by your employer or plan administrator.
Contributions become part of an investment account whose value can change as the underlying investments gain or lose value.
Learn about the types of investments that may be available through a workplace retirement plan.
Explore options →Understand how index funds work and why they may appear in a 401(k) investment menu.
Learn about index funds →Learn how target-date funds are designed around an expected retirement timeframe.
Explore target-date funds →Learn why spreading investments across different assets can be part of an investment approach.
Learn about diversification →Build your understanding one topic at a time.
Use our calculators to explore how contributions, employer matching, investment growth and retirement timing can affect an estimated 401(k) balance.
Explore contribution, growth, employer match, Roth and retirement scenarios from one calculator hub.
Quick answers to common questions about workplace retirement plans.
Learn the fundamentals, explore your options and use interactive calculators to understand how different retirement scenarios may affect your future savings.
Educational Disclaimer: 401k.blog provides general educational information about 401(k) plans and retirement planning. This information is not individualized financial, investment, tax or legal advice. Retirement plans have different rules and features, so review your plan documents and consult an appropriately qualified professional when you need advice for your circumstances. Calculator results on 401k.blog are estimates for educational purposes and are not guarantees of future investment performance or retirement income.
Clear guides, useful calculators and practical retirement resources to help you understand your 401(k), contributions, employer matching, Roth options, rollovers and long-term savings.
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