Could you invest just 2 percent more?
Use this calculator to see how much more you could accumulate in your employer retirement plan over time by increasing the amount that you contribute from each paycheck. Even 2 percent more from your pay could make a big difference. Enter information about your current situation, your current and proposed new contribution rate, anticipated pay increases and how long the money might be invested, as well as your own assumptions about the growth rate of your investments, and see the difference for yourself*. For additional information, see How to use the Contribution Calculator.
This calculator is designed to show you how you could potentially increase the value of your retirement plan account by increasing the amount that you contribute from each paycheck. The Growth Chart and Estimated Future Account Totals box will update each time you select the "Calculate" or "Recalculate" button.
Based on our records, the following information may be pre-filled:
- Pay period. If the information is not available, the default pay period is weekly.
- Your contribution rate. Note that we will use 8% as a default value if your contribution rate is not available or if your contribution is a dollar amount rather than a percentage.
- Years invested (65 minus your age)
- Your initial balance
You may change any of these values.
Using the calculator
In the following boxes, you'll need to enter:
- Your annual gross salary.
- Your expected annual pay increases, if any.
- How frequently you are paid by your employer.
- The amount of your current contribution rate (how much you're currently contributing to your plan account).
- The proposed new amount of your contribution rate. Be sure to verify the maximum contribution rate allowable under your plan. Also, pre-tax contributions are subject to the annual IRS dollar limit.
Pre-tax Contribution Limits 401(k), 403(b) and 457(b) plans
|After 2023||May be indexed annually in $500 increments|
- You can enter the amount of your current and proposed contributions as a percent of your pay, or as dollar amounts per pay period.
- Note: If you choose to enter these as dollar amounts, it is important that you select the appropriate pay period frequency, e.g., Weekly, Monthly, etc., in the Salary box. Also, if these are dollar amounts, your expected annual pay increases will be applied to these amounts.
- The amount of your employer match, if any.
- Use the "Additional Match" fields if your employer offers a bi-level match, such as 100 percent up to the first 3 percent of pay contributed, and 50 percent of the next 2 percent of pay contributed. In this example, you would enter 3 percent in the "Match Up to" field, and 5 percent in the "Additional Match Up to" field to indicate the combined total employer match.
- The length of time that you anticipate you will invest this money.
- The amount of your current account balance.
- Your hypothetical assumed annual rate of return.
This box summarizes the figures in the chart:
Hypothetical Future Account Totals
- The first field on the left shows you the hypothetical value of your account at the end of your specified time frame, at your current contribution rate and hypothetical assumed annual rate of return.
- The second field, in the middle shows the hypothetical value of your account at the end of your specified time frame, at your proposed new contribution rate and hypothetical assumed annual rate of return.
- The third field shows the difference between the two.
- The Growth Chart provides details on how each source of your account balance could grow. Simply run your mouse over the chart, and the totals will appear in a pop-up box. Remember that the results you receive from the hypothetical growth calculation do not account for tax effects of any kind. Therefore, the dollar amount of your actual net distribution may be reduced by any taxes due.
Additional Savings Opportunities
If you will be age 50 or older during the calendar year, you may receive a significant benefit as a result of the Economic Growth and Tax Relief Reconciliation Act of 2001. If your plan rules allow, the new law gives you the opportunity to make "catch-up" contributions to your retirement plan. You may now make an additional pre-tax contribution to your plan if you reach age 50 during the calendar year and have reached either the plan's or the IRS pre-tax contribution limit. The maximum catch-up contribution available is $7,500 for 2023.
For governmental 457(b) plans only:
There is an alternative limit for governmental 457(b) participants who are in one of the three full calendar years prior to retirement age. Eligible participants may contribute up to double the deferral limit in effect (i.e. up to $41,000 in 2023.) You may use only one of the catch-up provisions (age 50 or regular) in a given year.
This is the only type of catch-up available for 457(b) Non-Government plans.
The calculator is for illustrative purposes only and the results shown are purely hypothetical and not meant to reflect any actual investment. The principal value and investment return of your plan account will fluctuate and you may have a gain or loss when you sell your shares.
You are solely responsible for the accuracy of any data you enter into this calculator and the calculations are based on the information you have entered. The simplified tax calculations also do not take into account any other pre-tax deferrals, such as your reimbursement accounts for health plan or dental insurance, or other payroll taxes, such as FICA.
Your circumstances are unique; therefore, you need to assess your own situation and consult an investment professional if you feel you need more personal advice. Also, you should remember that the results you receive from this calculator do not account for tax effects of any kind. Therefore, the dollar amount of your actual plan account may be less than the estimate provided by the calculator. In addition, your circumstances will probably change over time, so review your financial strategy periodically to be sure it continues to fit your situation. All examples are hypothetical and are intended for illustrative purposes only. You are solely responsible for the accuracy of any data you enter into this calculator.