What the projection assumes
Monthly contributions plus employer match, compounded at your expected return. Seven percent nominal is a common planning assumption for a stock-heavy portfolio; it is not a promise, and sequence-of-returns risk means the last decade matters more than the first.
The match is free money
Not capturing a full employer match is the most expensive mistake in personal finance. A 50% match on the first 6% of salary is an instant 50% return — no market strategy competes with that. Contribute at least enough to get the full match before anything else.
2025 limits
- 401(k) employee deferral: 23,500 (plus 7,500 catch-up at 50+)
- IRA: 7,000 (plus 1,000 catch-up)
- Total 401(k) including employer: 70,000
- SEP-IRA for self-employed: up to 25% of net self-employment income
Reality check on the number
A projected balance is a pre-tax figure. Withdrawals are taxed as ordinary income, so multiply by roughly 0.75–0.85 for after-tax purchasing power. And check the assumption: raising the return from 7% to 9% changes a 30-year projection by more than 40% — treat it as a range, not a target.
Frequently Asked Questions
Should I use 7% or something else?
7% nominal is a common planning default for equities after fees; be more conservative as you approach retirement.
Does the employer match count toward the limit?
Employer contributions count toward the total plan limit, not your individual deferral limit.
What about inflation?
The projection is nominal; subtract 2.5–3% annually for real purchasing power.
Assumptions & disclaimer
Results are estimates for planning. Fee schedules, tax brackets and deduction limits change; confirm current figures with the marketplace, the IRS or a qualified accountant before making decisions. Nothing here is financial, tax or legal advice.
Privacy & Your Data
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