Adding a 401k as a Deduction in the Salary & Hourly Calculators
If you want to see the impact saving for retirement has on your net pay, add your 401k as a deduction in either the salary or hourly calculator. This calculator accommodates employee contributions to 401k plans, but not employer contributions.
To include the amount that you as an employee are contributing to your 401k retirement plan in the salary and hourly calculator, navigate to the "Voluntary Deduction Section" and input the relevant details.
Name the deduction something relevant to you such as "401K" or "Retirement Savings."
Then type in how much you'll be contributing to your 401k plan in the deduction amount field. You can either type in a percentage amount or a dollar amount. Just make sure to select the corresponding type, either "% of gross pay," "% of net pay," "fixed $ amount," or "$ hourly rate."
Finally, select what taxes your retirement contribution are exempt from. Employee contributions to 401k plans are exempt from federal income tax and, in some states, state income tax, withholding, but are not exempt from FICA withholding.
Using the 401k Calculator
If you want to see the possible impact your and/or your employers' 401k contribution will have over the course of a year or until you retire, use the 401k Calculator on PaycheckCity. In the "401k section" specify the employee contribution and the employer contribution. Just make sure to select the corresponding type, either "% of gross pay" or "fixed $ amount."
The results will show you how much you've saved in taxes and what your and your employers' total annual contribution to the 401k plan will be under your scenario. In addition, you can use the "401k Future Value Analysis" section to run some what-if scenarios given hypothetical inputs such as the current value of your savings plan, a projected annual salary increase, years to retirement, and three proposed interest rates.