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WORKED EXAMPLE

Maxing Out a $23,000 401(k) Contribution — Projected Balance

See what maxing out the 2024 401(k) employee limit of $23,000 a year grows into by retirement — real computed balance, employer match, and total growth.

Projected Balance at Retirement

37,08,062.87

Open this scenario in 401(k) Calculator

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Maxing out the annual 401(k) employee contribution limit is a common goal for higher earners aiming to build the largest possible tax-advantaged retirement balance, so it's a useful benchmark scenario.

The Scenario

  • Annual salary: $100,000
  • Contribution rate: 23% of salary (reaching the $23,000 employee contribution limit)
  • Employer match: Up to 3% of salary, matched at 100%
  • Current age → retirement age: 30 → 65 (35 years)
  • Expected annual return: 7%

The live result above is computed using the exact same compound growth formula the 401(k) Calculator applies — the real output for these inputs, not a rounded estimate.

What This Means

Over 35 years, total contributions from you and your employer combined are a relatively small fraction of the final projected balance — the rest comes entirely from investment growth compounding over decades. This is the core argument for starting early and contributing consistently: the employer match alone adds real money on top of your own contributions, and both amounts get decades to compound rather than sitting still. Contributing less, or starting later, shrinks the growth portion disproportionately more than it shrinks the contribution portion.

Try Your Own Numbers

Your actual salary, contribution rate, and timeline are likely different from this scenario. Click through to the 401(k) Calculator — the $100,000 salary and 23% contribution rate carry over automatically, and you can adjust your age, employer match, and expected return to match your own plan.

Frequently Asked Questions

$23,000 was the IRS employee contribution limit for 401(k) plans for the 2024 tax year, making it the natural ceiling for anyone deliberately maxing out their plan. The limit is adjusted periodically for inflation, so check the current year's IRS figure before assuming this exact number still applies.
Not necessarily — this scenario uses a $100,000 salary with a 23% contribution rate to land on the $23,000 figure, but the same dollar contribution is reachable at any salary if your plan allows a high enough percentage or a flat dollar election. Check your plan's rules and adjust the contribution rate field in the [401(k) Calculator](/401k-calculator-us/) to match your actual salary.
7% is a commonly used long-term planning assumption for a diversified stock-and-bond portfolio, roughly in line with historical inflation-adjusted equity market averages, but it's not guaranteed. Actual returns will vary significantly year to year based on market performance and how the account is invested.
In this scenario, the employer matches up to 3% of salary at a 100% ratio, contributing an amount separate from and in addition to your own $23,000 annual contribution. Over a long working career this employer money compounds alongside your own contributions and becomes a meaningful share of the final balance — see [How to Maximize Your 401(k)](/articles/how-to-maximize-401k/) for more on capturing the full match.
Starting a decade later gives compounding significantly less time to work, so the projected balance at retirement would be substantially lower even with the same contribution amount and return rate. Try changing the current age directly in the [401(k) Calculator](/401k-calculator-us/) to see how much starting earlier is worth in dollar terms.
It depends on factors like your employer match, the investment options in your plan, and your income level relative to IRA contribution limits. See [401(k) vs IRA](/articles/401k-vs-ira/) for a full comparison of when each account type makes more sense.

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