Federal 401k Calculator
This federal 401k calculator helps you plan for the future. Your 401k plan account might be your best tool for creating a secure retirement. Why? You only pay taxes on contributions and earnings when the money is withdrawn. Plus, many employers provide matching contributions. Use this calculator to see how increasing your contributions to a 401k can affect your paycheck and your retirement savings.
Our 401k calculator helps you understand how your 401k contributions affect your paycheck and long-term savings. Use this guide to accurately calculate the impact of your 401k contributions on your take-home pay.
What You’ll Need
- Your gross pay amount
- State of employment
- Pay date
- Current or planned 401k contribution percentage
- Information about any other deductions or benefits
Step-by-Step Instructions
1. Select Your State
Choose your state from the dropdown menu. This ensures that state-specific tax rates are applied to your calculations. If you only want to calculate federal taxes, select the “Federal” option.
2. Enter the Check Date
Input the date for which you want to calculate your paycheck. This is important because tax rates and 401k contribution limits can change annually.
3. Enter Your Gross Pay
Input your gross pay amount before any taxes or deductions are taken out.
4. Select Your Pay Frequency
Choose how often you get paid (e.g., weekly, bi-weekly, semi-monthly, monthly) from the dropdown menu.
5. Enter Your 401k Contribution
Input your 401k contribution as a percentage of your gross pay. If you’re not sure, start with your current contribution or a percentage you’re considering.
6. Add Employer Match (if applicable)
If your employer offers a 401k match, enter the matching percentage. This doesn’t affect your paycheck but helps in calculating your total 401k savings.
7. Include Other Pre-tax Deductions
Enter any other pre-tax deductions you have, such as health insurance premiums or flexible spending account contributions.
8. Review W-4 Information
Ensure your W-4 information is correctly entered:
- Select your filing status
- Enter the number of dependents, if applicable
- Add any additional withholding amounts
9. Calculate Your Paycheck
Click the “Calculate” button to see your results.
10. Analyze Your Results
Review the detailed breakdown of your paycheck, including:
- Gross Pay
- 401k Contribution Amount
- Federal Withholding
- State Withholding (if applicable)
- FICA taxes (Social Security and Medicare)
- Net (take-home) Pay
- Projected Annual 401k Savings (including employer match, if applicable)
Tips for Optimizing Your 401k Contributions
- Start by contributing enough to get your full employer match, if offered
- Gradually increase your contribution percentage over time
- Consider your age and retirement goals when setting contribution amounts
- Be aware of annual 401k contribution limits set by the IRS
Understanding 401k Tax Benefits
- 401k contributions are made with pre-tax dollars, reducing your taxable income
- Your contributions grow tax-deferred until withdrawal in retirement
- Employer matches are essentially “free money” that can significantly boost your retirement savings
Need help? Contact our support team for assistance with your 401k calculations or to discuss retirement planning strategies.
Is there a limit to 401k contributions?
What’s the difference between single and head of household?
What’s the W-4 form, and why is important?
You filled out a W-4 form when you were hired. The W4 form determines the amount of federal income tax withheld from your paycheck. Completing it accurately ensures proper withholding. States have their own state withholding forms too.
What was updated in the Federal W4 in 2020?
In 2020, the IRS updated the Federal W4 form that eliminated withholding allowances. The redesigned Form W4 makes it easier for your withholding to match your tax liability. Here’s how to answer the new questions:
- Step 2: check the box if you have more than one job or you and your spouse both have jobs. This will increase withholding.
- Step 3: enter an amount for dependents.The old W4 used to ask for the number of dependents. The new W4 asks for a dollar amount. Here’s how to calculate it: If your total income will be $200k or less ($400k if married) multiply the number of children under 17 by $2,000 and other dependents by $500. Add up the total.
- Step 4a: extra income from outside of your job, such as dividends or interest, that usually don't have withholding taken out of them. By entering it here you will withhold for this extra income so you don't owe tax later when filing your tax return.
- Step 4b: any additional withholding you want taken out. Any other estimated tax to withhold can be entered here. The more is withheld, the bigger your refund may be and you’ll avoid owing penalties.
If your W4 on file is in the old format (2019 or older), toggle "Use new Form W-4" to change the questions back to the previous form. Employees are currently not required to update it. However if you do need to update it for any reason, you must now use the new Form W-4.
State 401k Calculators
Select your state from the list below to see its 401k calculator.
- Alabama
- Alaska
- Arizona
- Arkansas
- California
- Colorado
- Connecticut
- Delaware
- Florida
- Georgia
- Hawaii
- Idaho
- Illinois
- Indiana
- Iowa
- Kansas
- Kentucky
- Louisiana
- Maine
- Maryland
- Massachusetts
- Michigan
- Minnesota
- Mississippi
- Missouri
- Montana
- Nebraska
- Nevada
- New Hampshire
- New Jersey
- New Mexico
- New York
- North Carolina
- North Dakota
- Ohio
- Oklahoma
- Oregon
- Pennsylvania
- Rhode Island
- South Carolina
- South Dakota
- Tennessee
- Texas
- Utah
- Vermont
- Virginia
- Washington
- Washington DC
- West Virginia
- Wisconsin
- Wyoming
- American Samoa
- Guam
- Northern Mariana Islands
- Puerto Rico
- US Virgin Islands