Scott's Corner 401(k) Investment Chart Money invested in a 401(k) is done so before federal income taxes are assessed and accrue in a tax-deferred account (grow tax free but are taxed when withdrawn). Many companies will match employee funding at some level (for each dollar the employee invests, the company will invest some fixed amount in the employee's name), up to some maximum contribution. An example would be a company matching 50 cents for each dollar the employee invests, up to 5% of the employees salary. The employee in this case would need to invest 5% of their salary to receive a full match from the company Use the chart below to determine an investment strategy to secure your future. The figures in this chart are calculated by assuming your contributions are made in a semi-monthly manner. Interest is then accrued on these semi-monthly contributions at a rate appropriate for the supplied annual percentage rate (apr). The chart is not intended to be pin-point accurate nor does it imply guaranteed returns, but rather to provide a general idea for your planning needs. Current Balance K   Company matches cents on the dollar Salary K   Company matches up to % of salary % of salary to invest %   Fed max investment K   Your Contribution $6,000   Expected annual rate of return (apr) %   Company Contribution +  $1,000   Target Value K Annual Investment $7,000   Balance (K) after N years Expected Annual rate of return   4 % 5 % 6 % 7 % 8 % 9 % 10 % 11 % 12 % 13 % 1 $7 $7 $7 $7 $7 $7 $7 $7 $7 $7 2 $15 $15 $15 $15 $15 $15 $15 $16 $16 $16 3 $22 $23 $23 $23 $24 $24 $24 $25 $25 $25 4 $30 $31 $31 $32 $33 $33 $34 $35 $35 $36 5 $39 $40 $41 $42 $43 $44 $45 $46 $47 $48 6 $47 $49 $50 $52 $53 $55 $57 $58 $60 $62 7 $56 $58 $60 $62 $65 $67 $70 $72 $75 $78 8 $65 $68 $71 $74 $77 $81 $84 $88 $92 $96 9 $75 $79 $82 $86 $91 $95 $100 $105 $110 $116 10 $85 $90 $95 $100 $105 $111 $117 $124 $131 $139 11 $96 $101 $107 $114 $121 $128 $136 $145 $154 $164 12 $107 $113 $121 $129 $138 $147 $157 $168 $181 $194 13 $118 $126 $135 $145 $156 $168 $180 $195 $210 $227 14 $130 $140 $150 $162 $176 $190 $206 $224 $243 $264 15 $142 $154 $167 $181 $197 $214 $234 $256 $280 $307 16 $155 $168 $184 $201 $220 $241 $265 $291 $321 $355 17 $168 $184 $202 $222 $244 $270 $299 $331 $368 $409 18 $181 $200 $221 $244 $271 $302 $336 $375 $420 $471 19 $196 $217 $241 $269 $300 $336 $377 $424 $479 $541 20 $210 $235 $263 $294 $331 $374 $423 $479 $544 $620 21 $226 $253 $285 $322 $365 $415 $472 $540 $618 $710 22 $242 $273 $309 $352 $401 $459 $527 $607 $701 $811 23 $258 $294 $335 $383 $441 $508 $588 $682 $794 $926 24 $276 $315 $362 $417 $483 $561 $654 $765 $898 $1,056 25 $293 $338 $391 $453 $529 $619 $727 $857 $1,014 $1,204 26 $312 $362 $421 $492 $578 $682 $807 $960 $1,145 $1,371 27 $331 $386 $453 $534 $631 $751 $896 $1,074 $1,292 $1,560 28 $351 $413 $487 $578 $689 $825 $993 $1,201 $1,457 $1,774 29 $372 $440 $523 $625 $751 $907 $1,101 $1,341 $1,642 $2,017 30 $394 $469 $561 $676 $818 $996 $1,219 $1,498 $1,849 $2,292 31 $417 $499 $602 $730 $891 $1,093 $1,348 $1,672 $2,082 $2,603 32 $440 $531 $644 $788 $969 $1,199 $1,491 $1,865 $2,342 $2,955 33 $464 $564 $690 $850 $1,053 $1,314 $1,649 $2,079 $2,635 $3,355 34 $490 $599 $738 $916 $1,145 $1,440 $1,822 $2,318 $2,964 $3,807 35 $516 $635 $789 $987 $1,243 $1,577 $2,012 $2,583 $3,332 $4,319 36 $543 $674 $843 $1,062 $1,349 $1,726 $2,222 $2,877 $3,745 $4,899 37 $572 $714 $900 $1,143 $1,464 $1,889 $2,453 $3,204 $4,209 $5,555 38 $601 $756 $960 $1,230 $1,588 $2,066 $2,707 $3,567 $4,728 $6,299 39 $632 $801 $1,024 $1,323 $1,722 $2,260 $2,986 $3,971 $5,312 $7,142 40 $664 $847 $1,092 $1,422 $1,867 $2,471 $3,294 $4,420 $5,966 $8,096 Back to Scott's Corner