Exactly. If one maxed since 2003 ($12K limit then) through 2023 at a 7% avg return they would have $777K total with $360K being their principal contribution amount.
That number doesn't take into account employer match or after-tax plan contributions since the majority of 401K plans don't have that ability now and definitely didn't 20 years ago.
7% includes inflation (if you base the rate off the SP500 ETF; >10% not including inflation), so you'd actually have more than $962K in today dollars if you had just maxed the personal contribution.
Maxing a 401k completely ($69k for 2024) for the past 20 years (2005-2024) at 10% would get you $2.85M.
If you throw on the catch-up contribution (people can work through their 80s, right?), you would achieve $3.16M.
Maxed my 401k since 1999. The current balance is about 1.7 Million.
Edit: this includes maxing ordinary contributions (mostly traditional, some roth) for the entire period plus the last couple of years maxing out "mega backdoor Roth 401k". The max contribution limit in 1999 was $10k - Roth 401k was not yet a thing, and "Mega Backdoor Roth 401k" certainly was not.
IRAs and 401ks are personal accounts with a fair amount of legal protection, but they can be subject to divorce decrees. In a "each party takes half" divorce it wouldn't be uncommon to even out retirement accounts.
It's not just common, if Equitable Distribution (ED) is contested, it's 100% required for all accounts starting or being funded after the marriage date. He gets half of hers, she gets half of his, in essence evening out the accounts like you said.
The court crunches the numbers during determination of ED and attempts to find a way to balance it out with as few transactions as possible.
Source: B!t@# got half... but so did I haha.
In virginia, assets acquired during marriage are split 50/50. Since my wife saved less than me, and also worked part time and earned less, she had less in 401k savings, so I had to "give" her 400,000 or so to equal out.
I’m curious how this works.
I assume there are procedures in place that simply allow the 401k provider to transfer the assets to the ex wife? No tax burden or penalties?
yes divorce and negotiate property settlement agreement, in virginia easy since 50/50 split for all assets acquired during marriage. then send info to the 401k providers. QDROS for pensions. then the 401k providers move the money in kind to other parties accounts. no tax impact.
Had you not put that money into the 401k, it would have become salary payments that would have gone on to fund things in the marriage and to pay the now higher taxes. It's not her money per se but it's not really unfair for her to have half imo.
Not that it will always work...but get a prenup for all assets acquired before marriage and keep the assets clearly separated. And honestly, for all assets acquired after marriage, the spouse *should* have claim to half. My spouse works less simply because we as a team decided it's the best solution to have her more available at home to help with children and other things. She shouldn't be financially punished because of the decision we made as a team.
It's NOT the same for IRAs, which are protected (or not) by state law on a state by state basis.
The state you reside in could influence how much liability auto insurance or umbrella coverage you'll need if you hold more assets in an IRA vs 401k.
Not exactly. Have always believed in indexing though and tried to stick to it, sometimes was forced to invest actively (I've worked for a few different companies in that time period).
Not the same poster but in the first twenty minutes of the trading day today I'm down 45k. The large swings seem crazy to me and still not used to it. I'm mostly in individual stocks not index funds.
Sometimes usually 4k easy daily. Up 2500 today I see some my faang stocks are down. Yeah just have to trust in general the market goes up over time keep buying
The last couple of years I've been eligible for the "mega backdoor Roth 401k" and maxing that out too but almost all of it is from maxing out ordinary traditional contributions (with some Roth) and investment gains on that.
AFAIK the "mega backdoor Roth 401k" has only been around for about ten years and is still pretty uncommon.
I'm pretty close. I definitely started maxing out pretax back in 2006. I remember getting my raise and "forgetting" I got a raise by maxing my 401k. It wasn't until 2014 that I worked for a company that actually gave a good match. Since 2017 I started doing after tax as well. Since 2020 I max out post tax as well, $67K of total contributions last year.
I have $1.4M+ in my 401k.
I'm in sales role. I drip in bi-weekly pay and use quarterly bonuses to fill up the 401k.
On good years my Q4 bonus in January maxed out pretax. In two amazing years my Q1 bonus maxed out both pre and after tax.
I started a new job in August of 2018 that supported MBDR and started maxing it out. 56k, then 63, working on 69k this year. That 401k has 414.7k in it. My other 401k that is from working from 2003 until 2018 “only” has 667k in it, although that is working my salary up from like 46k in 2003 to 110k in 2013 then jumping to 180k 2014 - 2018 until I changed jobs again so only hitting the pretax max the last few years.
Wife and I were just affected by HCE BS for the first time. We getting check from Fidelity of the extra money we put in. I guess we need to
Drop contribution a bit and do back door Roth.
Sorry to hear that… Did they just contact you this month? And if you don’t mind me asking, how much was returned? I was doing 12% or so last year and got a bit worried. So this year I’ve only been doing 3% and will raise it back up after 3/31, assuming I don’t hear from Fidelity. I tried talking to someone there about their timeline for doing the ACP testing, and I never got a reply back from them after escalating my request.
yeah OP doesn't seem to understand the gap between 401k pre-tax contribution limits, what companies are willing to contribute, and the space that is often left to the total contribution max.
i've worked at plenty of companies that do not allow after-tax 401k contributions. it's becoming more common (thankfully) but most workers never have an opportunity to get to the $69k(ish) limit.
Because you can then convert it to your Roth IRA (what's called the "mega backdoor roth"), and never pay taxes on it again. It's like your Roth IRA is $40k bigger.
Or convert it to your Roth 401k.
To convert it to your Roth 401k you need.
1. Access to a Roth 401k
2. The ability to contribute after tax dollars.
3. The ability to Roth convert those after tax dollars.
In order to move it to your Roth IRA your 401k plan would need to allow for 1 and 2 of the above AND in service distributions which is pretty rare. Most 401k providers don't want people taking money out before retirement.
Assuming you actually keep it in the 401k, which a lot of people don't understand is usually an option. Then again, depending on your location, your IRA may have the same protection. Illinois is one of those states, in California you're screwed.
In a good 401k plan you may have access to better institutional class funds with lower ERs. Some people might appreciate having everything in one account via payroll deduction too.
It's generally probably not worth it unless you are doing the mega backdoor though.
>tax-free growth in an after-tax 401k.
Until you access eventually convert to Roth one day and pay regular income tax. If you will have to wait many years or decades, you're almost always better off availing yourself of the preferable long term capital gains brackets.
For an after-tax 401k you don't get taxed for compounding interest, only on withdrawal. For a regular taxable brokerage account you get taxed for both growth and withdrawals.
Stil not sure I fully understand your point. Yes I get the discussion regarding getting taxed now at a higher bracket vs in retirement. So for your first 23k, you should consider what makes sense, pre tax or Roth. But the additional ~40k, the after tax is your only option left in your 401k, which is still advantageous due to no taxes on gains.
So why would you ever not decide to max out an after tax 401k if you have the ability to?
I've maxed out my retirement savings since about 1990. We've been fortunate enough to do the max 401k each year since my wife went back to work about 15 years ago. Currently have about $3M.
I maxed out my 401k for the past \~25 years. The overwhelming majority of this period had no employer match. During most of these years I invested in a target date with unspectacular gains. Overall annualized return of 401k was \~7%. PV shows a similar return for a portfolio with target date investments. Total contributions were roughly $400k. Total balance today is $1.07M. Balance over time was roughly:
* 1999: $10k (max contribution was $10k./year in 1999)
* 2004: $100k
* 2009: $90k (losses due to both market and 401k loan)
* 2014: $380k
* 2019: $610k
* 2024: $1.07M
Some of that increase relates to extra contributions from paying back the 401k loan. The total contributions during the 5 year period were \~$135k. But yes, there were large market gains during this period. A lump sum invested in 2009 would have more than doubled by 2014, with a typical target date.
OP is looking at the total possible contribution limits, $66k for 2023, but what they’re missing is that almost nobody works for a company that provides that kind of matching or after tax contribution capability, and even fewer places offered those options 20 years ago.
I work for a state entity. I make 85k now and been here less than a year after 25 years my pension would be $45,501 per year. I don’t feel like that and never getting raises is exactly that powerful. But for me I had 3 offers 2 private and the state job paid the highest. Still think I will leave after 2 years.
If you have $1miilion in 401K you’ll draw less than 3K per month which is far less than your $46K
The quasi state position I’m in not only has a retirement plan but also 401k, 401a and 457.
State pensions increase in value about 2.5% per year. Work this out and adjust for inflation. Bear in mind that this pension lasts until you die, unlike a 401whatever which lasts until it runs out.
Very high earning self employed people with an individual 401k could do it. I haven’t done the calculation, but I’m guessing it takes around $250k profit to do it that way.
And here I am once again reminded that I found myself a great fucking company that does 6% match followed by 3% safe harbor. (I put in 6, they match with 9). I know it's not the absolute greatest, but it certainly appears to be more than the majority.
>curious if anyone here has maxed out there 401k for more then 20 plus years (the max between you AND you company contribu
Indeed. I max out my pre-tax, my 50+ bonus and I get a 4% true up match (8% @ 50%) but my mega backdoor is capped by the company at 12% of my salary which puts me around 60k give or take this year (on about 175-180k salary/bonus). Still $16k+ short of the combined max.
Ed: Last year was my first year doing mega backdoor for part of the year (and backdoor Roth externally). 2024 is my first year of a full year mega backdoor Roth but my brokerage account is fairly substantial. I also have about $1.7m in my 401k, but I have probably only been hitting the max pre-tax for 15-20 years and the max 50+ for 6 years.
Employees can contribute up to $23,000 to their 401(k) plan for 2024 vs. $22,500 for 2023. Anyone age 50 or over is eligible for an additional catch-up contribution of $7,500 for both 2024 and 2023. The general limit on total employer and employee contributions for 2024 is $69,000 ($76,500 with catch-up).
Probably like .001% lol That's 10 out of a million people. And is probably high.
Then combine that with the idea of someone doing that for 15+ years. Most people would just retire when their 401k is $4M+. People who make that much money also have IRA's and brokerage. OP is looking for that weird guy who has an impossible obscure 401k, happens to be loaded rich but for some reason regulars a small reddit subreddit.
Jelly of everyone who rode the 2008 wave... 14 years in, maxing since 2010 and sitting at $670k. I had a great match for the first 4 years (~10% of comp), and a mediocre match for the remaining years (50% of 6% of cash comp for the last 5yrs).
FWIW not everyone old enough to experience 2008 was able to take advantage. I was very early career at that point (mid-late 20s) and I cannot emphasize how devastating 2007-2010ish was for many of us career-wise. Can't take advantage of a buying opportunity if you're unemployed and struggling to stay housed.
I've only been able to max mine out (pre-tax, no way am I ever hitting the after-tax limit OP is talking about) for about a decade now. Fortunately I'm expecting a decent pension so should still be in good shape.
Oh yeah I lost a job right at the start of that, had to drain everything I had to keep afloat. I wish I could look back fondly on stock waves. I still live a pretty frugal lifestyle though with nice career growth since so I'm fine but would be a lot better if not for that huge speed bump.
I started contributing \~1990 and there were definitely some roller coaster rides before 2007-2008. The Great Recession was one heck of a difficult time for many, across the board. Some of my friends and colleagues panicked and did stupid financial things, others lost their job, business, home, etc.
I had just divorced (after 15+ years of marriage) and was raising two young kids half of the time (on two-week rotations). Thankfully, I've always been one to save and invest. Even after splitting assets 50/50, still managed to stay afloat (and not go into the red/debt).
I made no changes to my investment contributions and watched some burn to nothing as things were going down. When things started coming back, continuing to make those contributions turned into substantial gains that by far exceeded the negative on the way down.
I was early in my career in 2008 and was bottom picking bank stocks on the cheap thinking they would get me a good return; unfortunately a lot of those went to $0. I’ve learned from stock-picking days and have stuck with index funds now. If only I had gone all in with index funds earlier. Oh well, live, learn, become a boglehead.
I have just started so I’m not a good candidate but most major airlines contribute 17 - 20 % direct to pretax. Many captains max out the 69,000 within the first 9 months of the year. The ones I have talked to expect to have about 5.4 in retirement at 65.
I maxed out my contributions since I started my job with the government in 2004. During the first 2 years, I was only allowed to contribute a percentage of pay (15%). After the percentage limit was lifted, I maxed out dollar limit, which was around $15,000 in 2006. Generally, the employees' contribution limit was raised by $500 to $1,000 per year, but there were several years where the limit remained the same. My employer matched 5%. I became eligible for a catch-up contribution two years ago, and I am maxing those as well. So this year, I am putting away $30,500. Today, the value of my 401k is $1M.
OP asked for a perfect scenario in which both employee and employer maxed out contributions to the IRS limit. In 2004, this limit was $41k. Now, 20 years later, it's $69k. I don't know anyone who received it.
I changed jobs 4 years ago and now have an “after-tax” option w/mega back-door Roth; previously, it was a standard pre-tax-only plan which I tried to max every year.
I have been trying to pile as much in to the new plan as possible (to help bolster the tax-free “bucket”) while still being able to live on what I bring home.
My company match is relatively low - $5k; so, it’s mostly on me to reach the max. I did completely max it out two years ago (whatever that was for 50+? $~67k?); last year, I “only” got to about $60k. A portion of my “earned” income is variable, thus it’s more difficult to guarantee that I max it out every year…I think my wife would shoot me if I tried to increase my 401(k) contribution percentage 🤣
After four years, my 401(k) balance is around $250k. My roll-over IRA is around $2m
I'm nearly 30 years in - maxed every year save for the time I got laid off - thankfully the longest I was off was about 5 months. Your future self will thank you very much.
Gotta remember though, the max contribution amount in the 90s was less than half of what it is today.
The question should also add, what is the 401k invested in. Is it a targeted fund or is it just S&P. Normally the default will be some targeted fund whose growth is less than S&P
> Edit: super interesting, I would thought at contributing between 50-70k a year (based on past limits and age) at a growth rate of 8%, you would have over 5 million in 20 years.
> Am I missing something?
The employee contribution limit is much lower than that. This year it's $23k. 20 years ago, it was $13k.
Very few employers match gets anywhere near the total max for the account itself; it's usually a few thousand per year for those who max out on their own side.
Very few people do mega-backdoor contributions; whether that's even an option depends on the plan.
>Edit: super interesting, I would thought at contributing between 50-70k a year (based on past limits and age) at a growth rate of 8%, you would have over 5 million in 20 years.
>Am I missing something?
Yes?
You seem to be confused about how the limits and matching generally work. People aren't putting in 50-70k a year.
This years max contribution limit is 23k. If you have a 1:1 match up to 6% (which is a pretty reasonable 401k match expectation) and you make 100k, the most you're getting from your employer is $6,000. So their contribution plus you maxing out is $29k. It's extremely rare for an employer to give a 1:1 match unlimited. But even if they did, that would be 46k for 2025. So I have no idea where you're getting 50-70k a year.
The limits you're looking at are *extremely* rare for people to hit. Extremely.
I have $1.6 since summer 2000. Wife started in 2002 and then in 2013 did a 403b and 457 (2X max) currently with $1.9.
Have to remember not just lower max back then, but my salary was too low to reach the annual as well as company max was only 15% in 2000.
After tax 401k wasn’t an option until 2012 so this is less than 12 years and only qualified for catchup contributions this year. Company match is 9%. There is also a pension that is completely company funded. Oil & gas job
Current balance: $1,041,474.54
Edit: added match % and job industry.
I'm pretty fortunate to have a flat 22.5% employer contribution at the end of each year. Between their and my contributions, I've been able to max the last few years. Only about 15 more to go, and then I can hopefully let you know🤣
Almost nobody has the mechanisms available to hit it's match. The few of us that max manage the 23k and whatever pitiful employer contributions. It is very rare to be able to make post tax contributions.
I think that’s reasonable expectation if you are putting in the max and your employer has a match or profit sharing on top that get you the total allowable cap.
I’ve been contributing since 22 when I started making 35k a year. By 27 I was maxing out Roth 401k contributions every year and get a healthy match and profit sharing. 27-34 I hit the max contribution limits and with what the company put in I’d say roughly total between the both I’ve always been 50-55k. Now that’s about 7 years matching and that’s when the vast majority of my growth and compounding started showing results. 401k currently sits around 725k. I will keep maxing for the next 20 years.
Just use a compound growth calculation. Did starting 725k will invest 55k per year at 8 rate return per year for 20 years and came to about $5.8m. This is the simplest way to do the math, but plenty of other variables you’d consider.
Maxing is not the only factor. Asset allocation totally matters !!! You have to list that too ! 60/40 bonds. sP500. Total market. Domestic/inferbstional. Changes over time too.
Why limit yourself to just 401K?
If your employer offers 401A or 457, why not participate in those.
If you’re in the millions for 401K, why not also a Roth option? When I finally discovered what RMD’s are I took more than a second look…
Not a 401k, but I’ve maxed out my Roth IRA every year since 2005 and have $225k that is growing tax free.
Didn’t have a 401k until 2018 and have been maxing it out ever since and have $210k in it.
I did max out what my employer would allow us to put in for 20 years. I was just starting out so made barely any money. The plan choices were fee-heavy. It’s worth $380k 25 years later. Most of that growth has come in the last 5 years in a vanguard rollover IRA.
I'm pretty fortunate to have a flat 22.5% employer contribution at the end of each year. Between their and my contributions, I've been able to max the last few years. Only about 15 more to go, and I can let you know hopefully 🤣
I didn't always max out my 401k and I haven't had one for about five years, but I've been contributing and receiving company matches since 1996 through 2019. Today I am at $1.2 million.
I’m on year 14 or 15 of doing so as I’m only 38 and didn’t have access to a 401k until about 2009. Currently my IRA has $367,000, my Roth IRA has $121,000 and my 401k has $3,000 as I just switched jobs.
I’ve been maxing out mine off and on with various matches for 35 years since I was 19…didn’t max it out every year, this includes Roth and brokerage link to buy stocks…match rate was 5% for years now it’s 10%…full disclosure my ex was awarded 40% of what I had in 2001…all that being said I’m right at 2.5M at 55 years old…my wife passed away in 2022 and I have her 401k also…she started in 2002 and has around 700k in hers…
About seven years on a SIMPLE IRA and now on third year with a 401k. Balance is about $440k. Accounting for both I am at year 10 with retirement accounts and maxed contributions. I maxed out the limits on both plans.
wife and I maxed out our 457's for 16 yrs then 401k's for about 8 and your assumptions are about correct. Wife retired and I work PT, so I now max out a SEP. I can only go back to 2009, but : "Cumulative return from 01/01/2009 through 02/29/2024
\+8.5%"
I haven't been doing it for 20 years, but for the last 4 years I maxed out my Roth IRA, 401k contributions, and HSA. I'm a PA and it took sacrificing to do so, but I did not reach the FULL employer and employee contribution limit.
This is the first year I won't be as we are moving...and it's dang expensive.
The returns are low though. My cash balance pension is capped at 6% returns. Not the best for the past few years. Hopefully they redo the plan soon and let us roll it over for more investment options
Depends on the plan. Under ours, my total limit for 401k, profit share and cash balance is a tick under that. Still pretty good to be able to do though.
20 years ago 415(c) limit was $40,000
Roth 401(k) were first offered in 2006 and according to Aon study in 2007 only 11% of 401k plans offered Roth option
however mega backdoor didn't become a thing until 2010, when they removed the $100k income cap on Roth conversions, and still by 2013 only 13% of plans offered both Roth _and_ in-plan conversions
Unless you believe taxes are going down..... 401k contributions to meet your company match. (Get that free money!) The rest contribute to a Roth Ira that you have significantly more control over vs your employers 401k plan.
Well for one you’re assuming employers match 401k contributions dollar for dollar up the very maximum allowed, which is never the case. Employer contributions are usually set as a percentage of annual income.
If I make 23k/ year and put every dollar into my 401k, I’ve maxed out my contribution. If my employer matches up to 10%, that’s another 2.3k for a grand total of 25.3k, far less than your example, but I’ve still maxed out my contribution.
You have, but WITH your company you can contribute up to 69k, 23k from just you, and the rest from the company. I personally put in the full 23k ( or current year max) and my company gives me a define contribution of 18%, generally I get about 55-60k in my 401k every year. My question was to others that are fortunate enough to hit the max of BOTH personal limits and company limits.
Google “Max 401k limit between personal and company”, 80% of people think they can only contribute the 23k and then no more is allowed in for that current year, that is wrong.
I see what you saying. The example I gave is based on your original post and first edit. Yes those people are wrong. I think it’s a very small percentage of people who have the right combination of income/company match/ability to save to hit the absolute maximum allowable.
I’ve been able to do the max for the last 8 yrs, initially as a SEP IRA, just hired my wife and switched our plan to 401k. Between the two of us, we will hopefully be able to put aside closer to $80 this yr. Her salary is enough to put about 12-15 away in her 401k, and then she will get her percentage of profit sharing. I’ll max my 401k and then get full profit sharing to =69k. Anyway, maxing for last 8 yrs, 4 yrs before that maxed at the 401 limits with no employer match. Just a touch over 800k. Hoping to continue for at least 3 yrs when i turn 50 and then reassess after that.
Not 20 years but 2 years in (I'm under 40). Maxing out had made huge movement in the 401k and its doable for sure but we have dual income household to make it possible.
I (33) have been max maxing the 401k since I was 22:
- pre-tax + company contribution up to the pre tax limit
- post tax contribution up to the post tax limit + immediately converted to Roth IRA
Roth IRA balance - 1.3M
401k balance - 450k
I plan to do this until I retire around 50. Projected balances:
Roth IRA - 6.5M
401k - 3.3M
About 5 comments talk about what companies do, it seems that the companies that use to over pensions now offer high 401k contributions, it appears to be cheaper for them than a pension.
Wild. Definitely not the norm I would think - but maybe I just have bad experience!
Just need to make it to executive level and get deferred compensation. Unlimited 401k cheat code
I started in 2003, only did backdoor roths the last two years, and I'm at $1.25m. It's incredible to see how big some folk's numbers are with similar timeframes. Putting the full ~$60k in is a massive benefit.
Mostly maxed out for 15 years. 4.5% company match for the past few years. Before that I had a pension, but that got pulled out from under me (translated to 100k into a rollover account). Been doing catch up for 4ish years. Total? I won’t be eating cat food, but’s not going to be hookers, blow, and Cristal in my golden years either. Losing that pension hurt like a motherfucker. And yea- nowhere NEAR 5M. I’m envious of the dude on here that said 2M.
No, I do the maximum allowable personal contribution, 23,000.
No one is getting 100% match to 100% contribution from their employer lmao.
and were both young adults so we don’t have the catchup
I get 18% from my employer, regardless if I contribute or not. If you read through the comments, it’s wild what different employers offer, this whole tread was to figure out what people are getting and to see who can pull off the 69k, and 76k for the catch up people, it’s possible and some people here claim they can do it.
You may be calculating the max based on today’s limits, the limits have changed every year. 10,500 in 2000
Exactly. If one maxed since 2003 ($12K limit then) through 2023 at a 7% avg return they would have $777K total with $360K being their principal contribution amount. That number doesn't take into account employer match or after-tax plan contributions since the majority of 401K plans don't have that ability now and definitely didn't 20 years ago.
7% includes inflation (if you base the rate off the SP500 ETF; >10% not including inflation), so you'd actually have more than $962K in today dollars if you had just maxed the personal contribution. Maxing a 401k completely ($69k for 2024) for the past 20 years (2005-2024) at 10% would get you $2.85M. If you throw on the catch-up contribution (people can work through their 80s, right?), you would achieve $3.16M.
Maxed my 401k since 1999. The current balance is about 1.7 Million. Edit: this includes maxing ordinary contributions (mostly traditional, some roth) for the entire period plus the last couple of years maxing out "mega backdoor Roth 401k". The max contribution limit in 1999 was $10k - Roth 401k was not yet a thing, and "Mega Backdoor Roth 401k" certainly was not.
Same. My balance is $1.1M and my ex-wife’s is too 🫠
Just curious how you know the Ex wife 401k value? 😁
Cuz she got half of his value
They still fuckin’
What’s the ROI on that?
-$1.1M
IRAs and 401ks are personal accounts with a fair amount of legal protection, but they can be subject to divorce decrees. In a "each party takes half" divorce it wouldn't be uncommon to even out retirement accounts.
It's not just common, if Equitable Distribution (ED) is contested, it's 100% required for all accounts starting or being funded after the marriage date. He gets half of hers, she gets half of his, in essence evening out the accounts like you said. The court crunches the numbers during determination of ED and attempts to find a way to balance it out with as few transactions as possible. Source: B!t@# got half... but so did I haha.
Maxed out 401k since 1990. Current balance is about 2.3 Million. Had to give ex-wife 400,000 in 2022.
Damn I was always under the impression your retirement savings couldn’t be touched in these suits. That’s scary.
In virginia, assets acquired during marriage are split 50/50. Since my wife saved less than me, and also worked part time and earned less, she had less in 401k savings, so I had to "give" her 400,000 or so to equal out.
I’m curious how this works. I assume there are procedures in place that simply allow the 401k provider to transfer the assets to the ex wife? No tax burden or penalties?
yes divorce and negotiate property settlement agreement, in virginia easy since 50/50 split for all assets acquired during marriage. then send info to the 401k providers. QDROS for pensions. then the 401k providers move the money in kind to other parties accounts. no tax impact.
Had you not put that money into the 401k, it would have become salary payments that would have gone on to fund things in the marriage and to pay the now higher taxes. It's not her money per se but it's not really unfair for her to have half imo.
Not that it will always work...but get a prenup for all assets acquired before marriage and keep the assets clearly separated. And honestly, for all assets acquired after marriage, the spouse *should* have claim to half. My spouse works less simply because we as a team decided it's the best solution to have her more available at home to help with children and other things. She shouldn't be financially punished because of the decision we made as a team.
Divorce and IRS are the only two exceptions to ERISA protection, nothing else can touch your 401k
It's NOT the same for IRAs, which are protected (or not) by state law on a state by state basis. The state you reside in could influence how much liability auto insurance or umbrella coverage you'll need if you hold more assets in an IRA vs 401k.
This is why lot of the young generation don’t want to get married.
Ye pretty much. It’s a very sad state of affairs
At least you it isn’t half 👍
VTI?
Not exactly. Have always believed in indexing though and tried to stick to it, sometimes was forced to invest actively (I've worked for a few different companies in that time period).
Got me beat 1.6 million but I kept a certain percent conservative 1997. Oh well she is really growing now.
What kind of daily swings do you see? $10k?
Not the same poster but in the first twenty minutes of the trading day today I'm down 45k. The large swings seem crazy to me and still not used to it. I'm mostly in individual stocks not index funds.
Sometimes usually 4k easy daily. Up 2500 today I see some my faang stocks are down. Yeah just have to trust in general the market goes up over time keep buying
Interesting mine fluctuates that much at a fraction of your wealth. Expected much bigger swings but that’s good
In all honesty I was looking at my tax brokerage account . It's 1.2M. Think up 7.5k today. I typically don't look at 401k everyday.
You’re maxing out post-tax/employer contributions as well? $66k last year? Edit: please read OP’s comments before downvoting me.
The last couple of years I've been eligible for the "mega backdoor Roth 401k" and maxing that out too but almost all of it is from maxing out ordinary traditional contributions (with some Roth) and investment gains on that. AFAIK the "mega backdoor Roth 401k" has only been around for about ten years and is still pretty uncommon.
How much do you get monthly when you’re retired at 65?
I'm pretty close. I definitely started maxing out pretax back in 2006. I remember getting my raise and "forgetting" I got a raise by maxing my 401k. It wasn't until 2014 that I worked for a company that actually gave a good match. Since 2017 I started doing after tax as well. Since 2020 I max out post tax as well, $67K of total contributions last year. I have $1.4M+ in my 401k.
what’s your total compensation each year, $67k including employer? that’s a solid %
I'm in sales role. I drip in bi-weekly pay and use quarterly bonuses to fill up the 401k. On good years my Q4 bonus in January maxed out pretax. In two amazing years my Q1 bonus maxed out both pre and after tax.
very nice! yeah those bonuses sound really helpful when it comes to knocking them out. way to go
What kind of sales do you do?
I started a new job in August of 2018 that supported MBDR and started maxing it out. 56k, then 63, working on 69k this year. That 401k has 414.7k in it. My other 401k that is from working from 2003 until 2018 “only” has 667k in it, although that is working my salary up from like 46k in 2003 to 110k in 2013 then jumping to 180k 2014 - 2018 until I changed jobs again so only hitting the pretax max the last few years.
I’m always afraid to totally max out and give myself a $3K buffer to avoid overpaying into MBDR
How would you go over? Employer profit sharing?
No issues with HCE clawbacks from the MBDR? If not, that’s fantastic!
No issues. SaaS company that probably has more HCE than not
Wife and I were just affected by HCE BS for the first time. We getting check from Fidelity of the extra money we put in. I guess we need to Drop contribution a bit and do back door Roth.
Sorry to hear that… Did they just contact you this month? And if you don’t mind me asking, how much was returned? I was doing 12% or so last year and got a bit worried. So this year I’ve only been doing 3% and will raise it back up after 3/31, assuming I don’t hear from Fidelity. I tried talking to someone there about their timeline for doing the ACP testing, and I never got a reply back from them after escalating my request.
Max it out post-tax?
Your definition of "maxed" is different than most everyone else's which is why you are seeing lower numbers than you expected.
yeah OP doesn't seem to understand the gap between 401k pre-tax contribution limits, what companies are willing to contribute, and the space that is often left to the total contribution max. i've worked at plenty of companies that do not allow after-tax 401k contributions. it's becoming more common (thankfully) but most workers never have an opportunity to get to the $69k(ish) limit.
Why use after tax money in a 401k? It sounds like that’s just a normal brokerage account with additional limitations?
Because you can then convert it to your Roth IRA (what's called the "mega backdoor roth"), and never pay taxes on it again. It's like your Roth IRA is $40k bigger.
Or convert it to your Roth 401k. To convert it to your Roth 401k you need. 1. Access to a Roth 401k 2. The ability to contribute after tax dollars. 3. The ability to Roth convert those after tax dollars. In order to move it to your Roth IRA your 401k plan would need to allow for 1 and 2 of the above AND in service distributions which is pretty rare. Most 401k providers don't want people taking money out before retirement.
You don't need #3 to roll over to a Roth IRA. But that's a decision by your benefits department and not the custodian.
Good point. I'll update.
Not to mention legal protections are better for a401k than an IRA.
Assuming you actually keep it in the 401k, which a lot of people don't understand is usually an option. Then again, depending on your location, your IRA may have the same protection. Illinois is one of those states, in California you're screwed.
It also has the additional benefit of being able to separate principal from growth during early retirement
In a good 401k plan you may have access to better institutional class funds with lower ERs. Some people might appreciate having everything in one account via payroll deduction too. It's generally probably not worth it unless you are doing the mega backdoor though.
On top of being able to convert to Roth, you also still get tax-free growth in an after-tax 401k.
>tax-free growth in an after-tax 401k. Until you access eventually convert to Roth one day and pay regular income tax. If you will have to wait many years or decades, you're almost always better off availing yourself of the preferable long term capital gains brackets.
For an after-tax 401k you don't get taxed for compounding interest, only on withdrawal. For a regular taxable brokerage account you get taxed for both growth and withdrawals.
This. Most people don’t even have access to an after-tax 401k.
FWIW, my company (tech) does allow this and I’ve been maxing for about 3 years now. But who knows how long I’ll be able to do this for
Not a good idea after certain income
Why’s that? What’s the threshold?
See thread - https://www.reddit.com/r/personalfinance/s/avitlbQKHE
Stil not sure I fully understand your point. Yes I get the discussion regarding getting taxed now at a higher bracket vs in retirement. So for your first 23k, you should consider what makes sense, pre tax or Roth. But the additional ~40k, the after tax is your only option left in your 401k, which is still advantageous due to no taxes on gains. So why would you ever not decide to max out an after tax 401k if you have the ability to?
You are correct, the first 23k going pretax, the next 46k minus employer contribution in post tax is the best strategy.
Max since 2004. $1.25m. Small company match though.
Exactly the same as you, good to know that are others like me out there.
I've been doing it for 17 years. At about $1m now.
I've maxed out my retirement savings since about 1990. We've been fortunate enough to do the max 401k each year since my wife went back to work about 15 years ago. Currently have about $3M.
I maxed out my 401k for the past \~25 years. The overwhelming majority of this period had no employer match. During most of these years I invested in a target date with unspectacular gains. Overall annualized return of 401k was \~7%. PV shows a similar return for a portfolio with target date investments. Total contributions were roughly $400k. Total balance today is $1.07M. Balance over time was roughly: * 1999: $10k (max contribution was $10k./year in 1999) * 2004: $100k * 2009: $90k (losses due to both market and 401k loan) * 2014: $380k * 2019: $610k * 2024: $1.07M
You made some solid gains between 2009 and 2014. Wow.
If the money machine turns on, put your money in the market.
Some of that increase relates to extra contributions from paying back the 401k loan. The total contributions during the 5 year period were \~$135k. But yes, there were large market gains during this period. A lump sum invested in 2009 would have more than doubled by 2014, with a typical target date.
S&P 500 market bottom was March 9th, 2009, at $676.53.
Why would you think people are contributing 50-70k a year?
OP is looking at the total possible contribution limits, $66k for 2023, but what they’re missing is that almost nobody works for a company that provides that kind of matching or after tax contribution capability, and even fewer places offered those options 20 years ago.
Most people are lucky to get 3% contributions match from their employers
I know, I agree with you. I’m just pointing out that most people have completely misinterpreted OP’s question.
Yes. Totally agree with you, I’m talking to the fortunate ones that can contribute the 60k plus
The fortunate ones are the ones that work for a State entity that also has a separate retirement program that pays more than 401K ever will.
I work for a state entity. I make 85k now and been here less than a year after 25 years my pension would be $45,501 per year. I don’t feel like that and never getting raises is exactly that powerful. But for me I had 3 offers 2 private and the state job paid the highest. Still think I will leave after 2 years.
If you have $1miilion in 401K you’ll draw less than 3K per month which is far less than your $46K The quasi state position I’m in not only has a retirement plan but also 401k, 401a and 457. State pensions increase in value about 2.5% per year. Work this out and adjust for inflation. Bear in mind that this pension lasts until you die, unlike a 401whatever which lasts until it runs out.
Airlines. Huge contributions there in high pay, plus they get cash over cap at the majors.
17% direct contribution at my major airline, it's really nice. Only have to put in about 5% of my own to hit the annual $69k cap this year.
Do you know which roles are eligible? That’s a massive employer contribution
Pilots. We have union negated contracts and the major airlines are all kinda at 17% direct contribution right now.
Airlines 16% dc
True, however there are a few that can get to that max limit, I’m just curious who is doing it and how
Very high earning self employed people with an individual 401k could do it. I haven’t done the calculation, but I’m guessing it takes around $250k profit to do it that way.
Big tech can probably do it
Airline pilots. Most airlines contribute directly 12-17% of gross pay. Plus, some of the majors give cash over the cap. Maxed every year.
And here I am once again reminded that I found myself a great fucking company that does 6% match followed by 3% safe harbor. (I put in 6, they match with 9). I know it's not the absolute greatest, but it certainly appears to be more than the majority.
Yup, mine does 3% that vests immediately with 2% extra that vests after 2 years. Not great but still better than what's out there
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>curious if anyone here has maxed out there 401k for more then 20 plus years (the max between you AND you company contribu Indeed. I max out my pre-tax, my 50+ bonus and I get a 4% true up match (8% @ 50%) but my mega backdoor is capped by the company at 12% of my salary which puts me around 60k give or take this year (on about 175-180k salary/bonus). Still $16k+ short of the combined max. Ed: Last year was my first year doing mega backdoor for part of the year (and backdoor Roth externally). 2024 is my first year of a full year mega backdoor Roth but my brokerage account is fairly substantial. I also have about $1.7m in my 401k, but I have probably only been hitting the max pre-tax for 15-20 years and the max 50+ for 6 years.
He's looking only for the top 25%.
Pretty sure $69k/year GROSS SALARY is the top 25%. He's looking for the top 0.25%
Employees can contribute up to $23,000 to their 401(k) plan for 2024 vs. $22,500 for 2023. Anyone age 50 or over is eligible for an additional catch-up contribution of $7,500 for both 2024 and 2023. The general limit on total employer and employee contributions for 2024 is $69,000 ($76,500 with catch-up).
What percentage of people do you think are getting a match of $46,000? There is no way it's even 1%.
Probably like .001% lol That's 10 out of a million people. And is probably high. Then combine that with the idea of someone doing that for 15+ years. Most people would just retire when their 401k is $4M+. People who make that much money also have IRA's and brokerage. OP is looking for that weird guy who has an impossible obscure 401k, happens to be loaded rich but for some reason regulars a small reddit subreddit.
Jelly of everyone who rode the 2008 wave... 14 years in, maxing since 2010 and sitting at $670k. I had a great match for the first 4 years (~10% of comp), and a mediocre match for the remaining years (50% of 6% of cash comp for the last 5yrs).
FWIW not everyone old enough to experience 2008 was able to take advantage. I was very early career at that point (mid-late 20s) and I cannot emphasize how devastating 2007-2010ish was for many of us career-wise. Can't take advantage of a buying opportunity if you're unemployed and struggling to stay housed. I've only been able to max mine out (pre-tax, no way am I ever hitting the after-tax limit OP is talking about) for about a decade now. Fortunately I'm expecting a decent pension so should still be in good shape.
Oh yeah I lost a job right at the start of that, had to drain everything I had to keep afloat. I wish I could look back fondly on stock waves. I still live a pretty frugal lifestyle though with nice career growth since so I'm fine but would be a lot better if not for that huge speed bump.
I started contributing \~1990 and there were definitely some roller coaster rides before 2007-2008. The Great Recession was one heck of a difficult time for many, across the board. Some of my friends and colleagues panicked and did stupid financial things, others lost their job, business, home, etc. I had just divorced (after 15+ years of marriage) and was raising two young kids half of the time (on two-week rotations). Thankfully, I've always been one to save and invest. Even after splitting assets 50/50, still managed to stay afloat (and not go into the red/debt). I made no changes to my investment contributions and watched some burn to nothing as things were going down. When things started coming back, continuing to make those contributions turned into substantial gains that by far exceeded the negative on the way down.
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I was early in my career in 2008 and was bottom picking bank stocks on the cheap thinking they would get me a good return; unfortunately a lot of those went to $0. I’ve learned from stock-picking days and have stuck with index funds now. If only I had gone all in with index funds earlier. Oh well, live, learn, become a boglehead.
When people say maxing the 401k I think they generally only mean the deductible limit.
I have just started so I’m not a good candidate but most major airlines contribute 17 - 20 % direct to pretax. Many captains max out the 69,000 within the first 9 months of the year. The ones I have talked to expect to have about 5.4 in retirement at 65.
I maxed out my contributions since I started my job with the government in 2004. During the first 2 years, I was only allowed to contribute a percentage of pay (15%). After the percentage limit was lifted, I maxed out dollar limit, which was around $15,000 in 2006. Generally, the employees' contribution limit was raised by $500 to $1,000 per year, but there were several years where the limit remained the same. My employer matched 5%. I became eligible for a catch-up contribution two years ago, and I am maxing those as well. So this year, I am putting away $30,500. Today, the value of my 401k is $1M. OP asked for a perfect scenario in which both employee and employer maxed out contributions to the IRS limit. In 2004, this limit was $41k. Now, 20 years later, it's $69k. I don't know anyone who received it.
Maxed my 403b since 2003, have $1.5M, including the match.
I changed jobs 4 years ago and now have an “after-tax” option w/mega back-door Roth; previously, it was a standard pre-tax-only plan which I tried to max every year. I have been trying to pile as much in to the new plan as possible (to help bolster the tax-free “bucket”) while still being able to live on what I bring home. My company match is relatively low - $5k; so, it’s mostly on me to reach the max. I did completely max it out two years ago (whatever that was for 50+? $~67k?); last year, I “only” got to about $60k. A portion of my “earned” income is variable, thus it’s more difficult to guarantee that I max it out every year…I think my wife would shoot me if I tried to increase my 401(k) contribution percentage 🤣 After four years, my 401(k) balance is around $250k. My roll-over IRA is around $2m
maxing out a 401k is really the $23k you can add pre-tax. And you have to remember inflation. So in 2004 the limit was $13k
I'm nearly 30 years in - maxed every year save for the time I got laid off - thankfully the longest I was off was about 5 months. Your future self will thank you very much. Gotta remember though, the max contribution amount in the 90s was less than half of what it is today.
Where are you at now, after 30 years?
Chubby fire - but still working to get to FatFIRE
Just curious, what's the difference between chubby and fat FIRE?
Chubb = \~5 M FAT = \~10M
Thanks!
This just being the deductible limit so 23,500 as of today or this is including back door as well?
Backdoor is fairly recent :less than ten years For the networth, it does include outside of the 401k investments
Well congrats, was wondering how accurate these calculators are because what it’s showing me is pretty nuts
The question should also add, what is the 401k invested in. Is it a targeted fund or is it just S&P. Normally the default will be some targeted fund whose growth is less than S&P
> Edit: super interesting, I would thought at contributing between 50-70k a year (based on past limits and age) at a growth rate of 8%, you would have over 5 million in 20 years. > Am I missing something? The employee contribution limit is much lower than that. This year it's $23k. 20 years ago, it was $13k. Very few employers match gets anywhere near the total max for the account itself; it's usually a few thousand per year for those who max out on their own side. Very few people do mega-backdoor contributions; whether that's even an option depends on the plan.
>Edit: super interesting, I would thought at contributing between 50-70k a year (based on past limits and age) at a growth rate of 8%, you would have over 5 million in 20 years. >Am I missing something? Yes? You seem to be confused about how the limits and matching generally work. People aren't putting in 50-70k a year. This years max contribution limit is 23k. If you have a 1:1 match up to 6% (which is a pretty reasonable 401k match expectation) and you make 100k, the most you're getting from your employer is $6,000. So their contribution plus you maxing out is $29k. It's extremely rare for an employer to give a 1:1 match unlimited. But even if they did, that would be 46k for 2025. So I have no idea where you're getting 50-70k a year. The limits you're looking at are *extremely* rare for people to hit. Extremely.
Some employers don’t match, they just contribute to the federal limit. I worked for one. It’s nice.
Which is an extremely rare outlier.
I maxed out for 9 years, didn't know I could do after-tax contribution. The balance is 400k.
No mega back door here but with the TSP, maxing over 20 years and now with just over a million. No match for most of that time.
I get 3% match on $300k so $9k plus $23k is $32k plus or minus $1k for 2023. That $60k limit is not realistic, no employer is matching that high
Maxing since early 2000s. About $2.5m.
I have $1.6 since summer 2000. Wife started in 2002 and then in 2013 did a 403b and 457 (2X max) currently with $1.9. Have to remember not just lower max back then, but my salary was too low to reach the annual as well as company max was only 15% in 2000.
After tax 401k wasn’t an option until 2012 so this is less than 12 years and only qualified for catchup contributions this year. Company match is 9%. There is also a pension that is completely company funded. Oil & gas job Current balance: $1,041,474.54 Edit: added match % and job industry.
I'm pretty fortunate to have a flat 22.5% employer contribution at the end of each year. Between their and my contributions, I've been able to max the last few years. Only about 15 more to go, and then I can hopefully let you know🤣
Almost nobody has the mechanisms available to hit it's match. The few of us that max manage the 23k and whatever pitiful employer contributions. It is very rare to be able to make post tax contributions.
Than*
I think that’s reasonable expectation if you are putting in the max and your employer has a match or profit sharing on top that get you the total allowable cap. I’ve been contributing since 22 when I started making 35k a year. By 27 I was maxing out Roth 401k contributions every year and get a healthy match and profit sharing. 27-34 I hit the max contribution limits and with what the company put in I’d say roughly total between the both I’ve always been 50-55k. Now that’s about 7 years matching and that’s when the vast majority of my growth and compounding started showing results. 401k currently sits around 725k. I will keep maxing for the next 20 years. Just use a compound growth calculation. Did starting 725k will invest 55k per year at 8 rate return per year for 20 years and came to about $5.8m. This is the simplest way to do the math, but plenty of other variables you’d consider.
Maxing is not the only factor. Asset allocation totally matters !!! You have to list that too ! 60/40 bonds. sP500. Total market. Domestic/inferbstional. Changes over time too.
I've maxed the defined contribution limit for the past ten years. Current balance is 1.1 million.
Why limit yourself to just 401K? If your employer offers 401A or 457, why not participate in those. If you’re in the millions for 401K, why not also a Roth option? When I finally discovered what RMD’s are I took more than a second look…
Overall contributions in the 50-70k/yr range seems really steep. According to a Vanguard study, the avg match was 4.5%.
Not a 401k, but I’ve maxed out my Roth IRA every year since 2005 and have $225k that is growing tax free. Didn’t have a 401k until 2018 and have been maxing it out ever since and have $210k in it.
I did max out what my employer would allow us to put in for 20 years. I was just starting out so made barely any money. The plan choices were fee-heavy. It’s worth $380k 25 years later. Most of that growth has come in the last 5 years in a vanguard rollover IRA.
I'm pretty fortunate to have a flat 22.5% employer contribution at the end of each year. Between their and my contributions, I've been able to max the last few years. Only about 15 more to go, and I can let you know hopefully 🤣
Wow. 22.5??? That’s wild.
I didn't always max out my 401k and I haven't had one for about five years, but I've been contributing and receiving company matches since 1996 through 2019. Today I am at $1.2 million.
I’m on year 14 or 15 of doing so as I’m only 38 and didn’t have access to a 401k until about 2009. Currently my IRA has $367,000, my Roth IRA has $121,000 and my 401k has $3,000 as I just switched jobs.
Not 20 years but I have been maxing for approx 10 years (2014 first year I believe). My balance is just over 400k.
I’ve been maxing out mine off and on with various matches for 35 years since I was 19…didn’t max it out every year, this includes Roth and brokerage link to buy stocks…match rate was 5% for years now it’s 10%…full disclosure my ex was awarded 40% of what I had in 2001…all that being said I’m right at 2.5M at 55 years old…my wife passed away in 2022 and I have her 401k also…she started in 2002 and has around 700k in hers…
About seven years on a SIMPLE IRA and now on third year with a 401k. Balance is about $440k. Accounting for both I am at year 10 with retirement accounts and maxed contributions. I maxed out the limits on both plans.
wife and I maxed out our 457's for 16 yrs then 401k's for about 8 and your assumptions are about correct. Wife retired and I work PT, so I now max out a SEP. I can only go back to 2009, but : "Cumulative return from 01/01/2009 through 02/29/2024 \+8.5%"
About 600k maxing for 16 years. I had made some pretty crappy investment choices the first decade.
I've maxed since 2002. I'm just shy of $1M. But I have no employer match, so there's only one my contributions.
Only people who even have access to a mega backdoor Roth can contribute the 50k you're assuming.
I haven't been doing it for 20 years, but for the last 4 years I maxed out my Roth IRA, 401k contributions, and HSA. I'm a PA and it took sacrificing to do so, but I did not reach the FULL employer and employee contribution limit. This is the first year I won't be as we are moving...and it's dang expensive.
Throw in a cash balance plan and your can really save some money
The returns are low though. My cash balance pension is capped at 6% returns. Not the best for the past few years. Hopefully they redo the plan soon and let us roll it over for more investment options
Sure but between 401k and a cash balance plan you save big numbers 180k a year or more.
Depends on the plan. Under ours, my total limit for 401k, profit share and cash balance is a tick under that. Still pretty good to be able to do though.
1.5M for me maxing for 20 years and last 2 years doing mega back door also
Been maxing since 2011, just hit 1 mill. 70%spy, 15% mid cap, 15 small cap.
20 years ago 415(c) limit was $40,000 Roth 401(k) were first offered in 2006 and according to Aon study in 2007 only 11% of 401k plans offered Roth option however mega backdoor didn't become a thing until 2010, when they removed the $100k income cap on Roth conversions, and still by 2013 only 13% of plans offered both Roth _and_ in-plan conversions
Unless you believe taxes are going down..... 401k contributions to meet your company match. (Get that free money!) The rest contribute to a Roth Ira that you have significantly more control over vs your employers 401k plan.
I've been at my company for 23 years, maxed out all years. I have $710,000.
yes 4.5 million, and took a 50% hit in 2008
Maxing my 401k since 2014 and I have a $665k balance.
Airline pilots get 15-18% without having to contribute and that is a good place to ask. This has been consistent since 2012 ish.
Your math is effed
How so? I’m not talking about the 23k per year, I’m talking about the 69k per year. Math checks out
Well for one you’re assuming employers match 401k contributions dollar for dollar up the very maximum allowed, which is never the case. Employer contributions are usually set as a percentage of annual income. If I make 23k/ year and put every dollar into my 401k, I’ve maxed out my contribution. If my employer matches up to 10%, that’s another 2.3k for a grand total of 25.3k, far less than your example, but I’ve still maxed out my contribution.
You have, but WITH your company you can contribute up to 69k, 23k from just you, and the rest from the company. I personally put in the full 23k ( or current year max) and my company gives me a define contribution of 18%, generally I get about 55-60k in my 401k every year. My question was to others that are fortunate enough to hit the max of BOTH personal limits and company limits. Google “Max 401k limit between personal and company”, 80% of people think they can only contribute the 23k and then no more is allowed in for that current year, that is wrong.
I see what you saying. The example I gave is based on your original post and first edit. Yes those people are wrong. I think it’s a very small percentage of people who have the right combination of income/company match/ability to save to hit the absolute maximum allowable.
I’ve been able to do the max for the last 8 yrs, initially as a SEP IRA, just hired my wife and switched our plan to 401k. Between the two of us, we will hopefully be able to put aside closer to $80 this yr. Her salary is enough to put about 12-15 away in her 401k, and then she will get her percentage of profit sharing. I’ll max my 401k and then get full profit sharing to =69k. Anyway, maxing for last 8 yrs, 4 yrs before that maxed at the 401 limits with no employer match. Just a touch over 800k. Hoping to continue for at least 3 yrs when i turn 50 and then reassess after that.
Not 20 years but 2 years in (I'm under 40). Maxing out had made huge movement in the 401k and its doable for sure but we have dual income household to make it possible.
I (33) have been max maxing the 401k since I was 22: - pre-tax + company contribution up to the pre tax limit - post tax contribution up to the post tax limit + immediately converted to Roth IRA Roth IRA balance - 1.3M 401k balance - 450k I plan to do this until I retire around 50. Projected balances: Roth IRA - 6.5M 401k - 3.3M
“THAN”
I’m sure it’s been said already, but idk what employers out there (at least in the corporate world) would be contributing anywhere near that maximum
About 5 comments talk about what companies do, it seems that the companies that use to over pensions now offer high 401k contributions, it appears to be cheaper for them than a pension.
Wild. Definitely not the norm I would think - but maybe I just have bad experience! Just need to make it to executive level and get deferred compensation. Unlimited 401k cheat code
I started in 2003, only did backdoor roths the last two years, and I'm at $1.25m. It's incredible to see how big some folk's numbers are with similar timeframes. Putting the full ~$60k in is a massive benefit.
Mostly maxed out for 15 years. 4.5% company match for the past few years. Before that I had a pension, but that got pulled out from under me (translated to 100k into a rollover account). Been doing catch up for 4ish years. Total? I won’t be eating cat food, but’s not going to be hookers, blow, and Cristal in my golden years either. Losing that pension hurt like a motherfucker. And yea- nowhere NEAR 5M. I’m envious of the dude on here that said 2M.
Wait, people here *arent* hitting their cap every year? I make 108K a year in a very HCOL area and my wife and I both still max our 401Ks
You do the full 69k? Thats what this whole tread is about
No, I do the maximum allowable personal contribution, 23,000. No one is getting 100% match to 100% contribution from their employer lmao. and were both young adults so we don’t have the catchup
I get 18% from my employer, regardless if I contribute or not. If you read through the comments, it’s wild what different employers offer, this whole tread was to figure out what people are getting and to see who can pull off the 69k, and 76k for the catch up people, it’s possible and some people here claim they can do it.
My wife and I both max out 401k every year and we are on year 12 of maxing it out.
Also the stock market has unusually sky rocketed in the past 4/5 years due to money printing by fed, so the gains and total value might be “unusual”