401(k) Calculator
This free 401(k) savings calculator can help you estimate how changing contributions can affect paychecks and retirement savings.
401k Calculator
These calculators are provided for estimates only. Calculations will not affect SurePayroll account information. You must enter payroll data directly into your SurePayroll account to process it for an upcoming payroll period. Log into your account here or by clicking Log In at the top of the page. Please direct specific SurePayroll questions to Customer Care after logging in.
Information and interactive calculators are made available to you only as self-help tools for your independent use and are not intended to provide legal, investment or tax advice. We cannot and do not guarantee their applicability or accuracy in regard to your individual circumstances. All examples are hypothetical and are for illustrative purposes. We encourage you to seek personalized advice from qualified professionals regarding all personal finance issues.
Importance of Saving for Retirement
Retirement planning isn’t just about saving money, it’s about helping ensure financial stability and peace of mind later in life. Effective retirement planning can involve accumulating savings as well as understanding future expenses, healthcare needs, and lifestyle aspirations.
Using a 401(k) estimator can help individuals anticipate how much they may need to save to achieve their retirement goals.
Employer-Sponsored Retirement Plans
Small and large companies offer their employees retirement plans to help them save for a more secure future. Employer-sponsored retirement plans also help businesses attract and retain top talent.
What is a 401(k) Retirement Plan?
A 401(k) is a type of employer-sponsored retirement arrangement. Employees contribute a defined amount of pre-tax or post-tax dollars each pay period to help save for their retirement.
Employers have the option to match some or part of the employee’s retirement contributions. Employers can also choose to provide a profit-sharing contribution.
A 401(k) plan creates the opportunity for contributions to grow—often tax-deferred—until retirement.
Benefits of a 401(k) Calculator
A 401(k) calculator can be a valuable tool to help employees who are seeking insight into different variables that may affect their retirement savings. These 401(k) projections can help employees estimate how much they may need to save to achieve their retirement goals.
How the 401(k) Calculator Works
By inputting variables like current age, anticipated retirement age, current savings, planned monthly contribution, employer match, and expected rate of return, employees can visualize how different savings strategies may impact their retirement savings outcomes.
The estimated outcome you will get from the 401(k)-growth calculator is based solely on the information you put into it.
Key Benefits of Using a 401(k) Calculator
Using a 401(k)-investment calculator can help individuals understand how adjusting the amounts of the different variables involved in a 401(k) plan can affect retirement savings.
Other benefits include:
- Helping employees set realistic savings goals.
- Providing insights into how employer contributions can impact savings.
- Estimating how different contribution levels can affect retirement savings.
- Understanding the long-term impact of saving for retirement.
Why Retirement Planning is Important
Usually, the primary goal of retirement planning is to provide financial security during retirement years. Without a proper plan, people may find themselves struggling to meet basic needs once they are no longer working.
One of the most compelling reasons to start saving early is the power of compound interest. The earlier you begin saving, the more time your money can potentially grow. Compound interest essentially means you can earn interest on your interest. This can lead to exponential growth over time.
Even small, regular contributions to a retirement account can accumulate significantly over time.
Planning their future with a retirement savings plan can help people accumulate savings to live comfortably in retirement.
401(k) Plans for Small Business
Small business employers can support their employees in building their future by starting a 401(k) plan for their business. SurePayroll® By Paychex can guide you in setting up a Sure401k plan to meet your business needs, whether building a plan for yourself, your business, your employees, or a combination of all three.
Let's answer some of your questions
Your ideal contribution percentage for retirement should be based on your situation. You may want to consider your current income and expenses to determine how much you can reasonably set aside for retirement. You may also want to consider your age, current savings, and overall retirement plans. Consulting with a professional financial advisor may be the best way to get advice tailored to your situation.
Yes, you can have multiple types of retirement savings accounts. Consult with your financial advisor to help you take full advantage of tax breaks associated with each type.
Your 401(k) savings stays with you when you change jobs. Most of the time, what you do with it is up to you. Sometimes it depends on your former employer. Common options might include keeping it with your former employer, rolling it over into a 401(k) plan with your new employer, or rolling it into a new retirement savings separate from either employer. You may also consider the option of cashing it out. Depending on your age, cashing it out may trigger penalties. It’s best to consult with a financial professional for personalized retirement planning advice.
In most cases, you will need to contact your plan provider or human resources department to make changes to your 401(k) contributions.
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