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This is an educational estimate, not financial advice.
What this means for you
Enter your info and hit Calculate to see your projected balance adjusted for inflation.
About 401(k) Plans
A 401(k) is an employer-sponsored retirement plan that allows you to save for retirement with tax advantages. Contributions are typically deducted from your paycheck before taxes, reducing your taxable income.
Key Benefits:
- Employer Match: Many employers match a percentage of your contributions
- Tax Deferred: Contributions reduce your current taxable income
- High Contribution Limits: Up to $23,000 in 2024 ($30,500 for those 50+)
- Automatic Contributions: Easy payroll deductions
2024 401(k) Contribution Limits:
- Under 50: $23,000 per year
- 50 and over: $30,500 per year (includes $7,500 catch-up contribution)
Compare IRA & 401(k) Providers
| Provider | Account Types | Typical Fees | |
|---|---|---|---|
| Provider A | IRA, Roth IRA | 0.25%–0.40% | Open account |
| Provider B | IRA, 401(k) rollovers | $0 trading, ETFs | Open account |
Disclosure: we may earn a commission if you sign up via links on this page.
Michigan Retirement Tips
- Check Michigan-specific tax treatment for retirement account withdrawals.
- Look into any state-sponsored retirement plans or special rules for Michigan residents.
- Benchmark your savings rate vs. Michigan median income if available.
- Consider Michigan cost of living when planning your retirement budget.
FAQ
What is the maximum 401(k) contribution for 2024?
For 2024, the maximum 401(k) contribution is $23,000 for those under 50, and $30,500 for those 50 and older (including the $7,500 catch-up contribution).
Can I contribute to a 401(k) if I'm self-employed?
Yes, self-employed individuals can set up a Solo 401(k) or SEP IRA. Contribution limits are often higher for self-employed 401(k) plans.
What happens to my 401(k) if I change jobs?
You can typically roll over your 401(k) to your new employer's plan, roll it into an IRA, or leave it with your previous employer (if allowed).