How this number is made
This projects a 401(k) from a salary that does not rise. Each year you defer a percent, the employer matches a percent of those dollars up to a percent of salary, and the sum is deposited monthly. The match formula matches the 401(k) match page. The growth is the assumption you type. The elective-deferral cap is not applied.
- “50” in the match box means 50 cents per dollar you contribute.
- “Match stops at” is a percent of salary, the way plans write “up to 6%.”
Formula
Employee = salary × deferral. Match = salary × the smaller of the deferral and the cap × match percent. Those dollars are added monthly and compounded monthly.
Worked example
With the figures already in the form, balance if the return holds is $743,687.
Questions
Why is the salary flat?
A raise would add a guess on top of the return guess. Type a higher salary if you want a higher contribution, and accept that it applies from year one.
Does this include the employer’s vesting?
No. Unvested match still shows up here. If you might leave, the match is not yours yet.