401K Calculator

401(k) Calculator & Complete Retirement Guide (SEO Friendly)

401(k) Early Withdrawal Cost Calculator

Agar aap 59½ saal se pehle 401(k) se paisa nikalte hain, to aap ko 10% early withdrawal penalty aur income taxes dene par sakte hain.
401(k) Early Withdrawal Calculator aap ko ye estimate karne mein madad karta hai ke actual amount kitni milegi jab federal, state, aur local taxes deduct ho jate hain.

Calculator Inputs:

• Early withdrawal amount

• Federal income tax rate

• State income tax rate

• Local/city tax rate

• Employment status

• Disability ya penalty exemption eligibility

Ye calculator aap ko clear picture deta hai ke early withdrawal ka real cost kya hota hai.

Maximize Employer 401(k) Match Calculator

Agar aap apni contribution percentage sahi set nahi karte, to aap employer ke free match ka faida miss kar sakte hain.

Employer Match Calculator aap ko ye batata hai:

• Kitni percentage salary contribute karni chahiye

• IRS annual limits kaise affect hoti hain

• Kaise poora saal employer match maximize kiya jaye

Calculator Inputs:

• Current age

• Annual salary

• Employer match percentage

• Employer match limits

What is a 401(k)?

401(k) ek employer-sponsored retirement savings plan hai jo U.S. mein use hota hai. Is plan ka sab se bara faida ye hai ke:

• Contributions pre-tax hoti hain (Traditional 401k)

• Investment growth tax-deferred hoti hai

• Taxes retirement par withdrawal ke waqt lagte hain

IRS Contribution Limits (2025):

• Under 50: $23,500

• Age 50+: $31,000

• Age 60–63: $34,750

Pros and Cons of a 401(k)

✅ Pros

• Tax-deferred growth (interest, dividends, capital gains)

• Employer matching = free money

• High contribution limits (IRAs se zyada)

• Bankruptcy protection

• Payroll deductions se automatic saving

❌ Cons

• Limited investment options

• Higher administrative fees

• Early withdrawal penalties

• Vesting periods (employer match ke liye)

• Waiting periods for new employees

401(k) as a Defined Contribution Plan

401(k) ek Defined Contribution Plan (DCP) hai, pension (Defined Benefit Plan) ke opposite.

Is ka matlab:

• Retirement amount investment performance par depend karta hai

• Job change karne par funds portable rehte hain

Job change ke baad options:

1. Old employer ke 401(k) mein funds chhor dena

2. New employer ke 401(k) mein rollover

3. IRA mein rollover

4. Cash-out (tax + 10% penalty)

401(k) Investment Options

Most 401(k) plans mein ye investments hoti hain:

• Mutual funds

• Index funds

• ETFs

• Target retirement funds

Advanced investors ke liye:

• Self-directed 401(k)

• Individual stocks (agar plan allow kare)

Employer Match Explained

Employer match ka matlab hai:

• Employer aap ki contribution ka certain percentage match karta hai

Example:
Employer 50% match karta hai up to 6% salary → Employer max 3% salary contribute karega.

👉 100% match = instant 100% return, jo kisi aur investment mein mushkil hai.

401(k) Vesting Period

• Employee contributions: 100% vested

• Employer contributions: vesting schedule ke under

Types of Vesting:

• Graded vesting: dheere dheere ownership

• Cliff vesting: ek specific time ke baad full ownership

Early 401(k) Withdrawals

59½ se pehle withdrawal par:

• 10% penalty

• Ordinary income tax

Hardship Withdrawal (Penalty Exceptions)

• Medical expenses

• Home purchase

• Tuition fees

• Foreclosure prevention

• Funeral expenses

• Home repair

Non-Financial Exceptions

• Disability

• Death (beneficiary ko payment)

• Age 55+ job separation

• IRS Rule 72(t) payments

401(k) Withdrawals in Retirement

59½ ke baad options:

1. Lump sum withdrawal

2. Installment payments

3. IRA rollover

4. Annuity conversion

5. Delay withdrawal (up to age 73)

Required Minimum Distributions (RMDs)

• RMD start hoti hai age 73 par

• Miss karne par 50% penalty lag sakti hai

• Exception: Agar abhi employed ho aur 5% se zyada company own na karte ho

Self-Directed 401(k) (Solo 401k)

Self-employed logon ke liye:

• Real estate

• Precious metals

• Private lending

• Alternative investments

Loan option:

• Up to 50% account balance ya $50,000

Roth 401(k) vs Traditional 401(k)