A 401(k) is a powerful tool for saving for retirement. Here are some key points to understand:

• Contribution Limits: For 2021, you can contribute up to $19,500 per year to your 401(k), or $26,000 if you're 50 or older.
• Employer Match: Many employers match a portion of your contributions. This is essentially free money, so try to contribute at least enough to get the full match.
• Tax Benefits: Traditional 401(k) contributions are made with pre-tax dollars, reducing your taxable income for the year. You'll pay taxes when you withdraw the money in retirement.
• Compound Growth: The earlier you start contributing, the more time your money has to grow through compound interest.
• Diversification: Make sure your 401(k) investments are diversified across different asset classes to manage risk.

This calculator provides a simplified estimate. For personalized retirement planning advice, consult with a qualified financial advisor.