How to use 401k Calculator Excel Spreadsheet

Published: 21st May 2012
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How to use 401k Calculator Excel Spreadsheet


Many of the online 401k calculator tools give wage information, and no info for retirement. That is why we use 401k Calculator Excel.
Investment in a 401k plan is done as a retirement plan. This best 401k calculator also gives you a real planning for your retirement needs.

But before you download this best 401k calculator. This is very important to know how to use this tool.
There are 20 Major inputs that you need to understand to fill in this best 401k Calculator Excel.

Unless you understand the input requirements for this 401k calculator, the results will not be accurate. Hence we recommend you to read and this post before you put your hands on this wonderful 401k calculator.
Important inputs in 401k calculator excel spreadsheet
#1) Enter you current age: This input is needed to calculate the number of years for investments and various other fields
#2) Enter your retirement Age: You can put in here your retirement Age as applicable in your organization.
#3) Enter your current annual salary: Here you need to fill in your Annual salary, and NOT the monthly salary.
#4) Enter you annual salary increase: Here you need to fill in the Normal salary hike that you get annually in your organization. The 401k calculator takes out its calculations based on the assumptions that you will continue getting this much hike in your salary every year until the you will retire.
#5) Enter Your current savings or 401K balance: Here you can fill in two thing or a sum of these two things. If you already have saved some money that you want and can according to rules can be added to your 401K account. or if you have already operating your 401k account and you previously have some balance amount in your 401K, then you can enter the amount in this filed of 401k calculator excel sheet.
#6) Enter Contributions To-Date in 401k calculator in Excel: (This field is valid only if you have already operating your 401k account and you have already made some investments/contributions) Here you can enter the amount of any previously made contributions up to date. This field is for your own investment and NOT for the Balance amount of your 401k.
#7) Enter Employer Contributions To-Date in 401k calculator Excel: (This field is valid only if you have already operating your 401k account and you AND your employer have already made some investments/contributions) Here you can enter an amount contributed by your employer to date.
#8) Enter Contribution as a % of your salary in 401k calculator: (If you want to contribute a fixed amount each year in your 401k plan then, enter 0 in this field, when you enter 0 in this filed only then the next cell will open where you can put a fixed amount) Most employers permit employees to contribute up to 15 percent of their salary to a 401(k). So in this field just fill in the percentage of your annual salary you want to contribute to your 401(k) plan each year.
#9) Enter your annual contribution in 401k calculator Excel: If you entered 0% in the above field (#8) than enter the fixed amount which you want contribute in you 401k plan each year.
#10) Increase contribution each year by: if you have filled in a fixed amount in above field (#9), and you also want to increase your annual contribution in 401k plan, then you can enter this as a percentage here
#11) Enter Employer match (% of contribution) in 401k calculator Excel: This is very important part for 401k Calculator. Employer match is what is know as free money from employer.
An employer match is in addition to your annual contributions. It is based on a percentage of your annual contributions. This range can be anywhere from 0% to 100%.
For example, let’s assume the employer matches 50% of the employee’s contributions up to 6% of their salary. The employee earns $200,000 per year and contributes 10% in his 401k plan. The results would be like this:
* $20,000 from the employee (your own contribution in 401k plan)
* $6,000 from the employer (which is50% of $12000 or 6% of the annual salary).
* Total: $26,000
The best 401k calculator also takes in to account the “Employer maximum” figure. For a detailed description of maximum employer matching contributions read below point. It is also important to note employer contributions do not affect the maximum amount allowed to be contributed by an employee.
#12) Enter Employer maximum (% of salary) in 401k calculator: (one of the deciding factors in 401k calculator) This is the maximum percent of your salary matched by your employer regardless of the amount you decide to contribute in your 401k plan.
For example, let’s assume your employer has a 50% match, up to a maximum of 6% of your annual salary. If you have an annual salary of $25,000 and contribute 6%, your annual contribution in 401k plan is $1500.With a 50% match, your employer will add another $750 to your 401(k) account. If you increase your contribution to 10%, your annual contribution is $2500 per year. Your employer match, however, is limited to the first 6% of your salary and remains at $750.

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