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How to become a millionaire with a 401k

While many don’t do it, it does not mean it’s impossible to become a millionaire if you save money and max out your 401k for a number of years.

A 401k lets people deposit a certain amount of their paycheck before it’s taxed.

Sometimes your employer will match your contributions too.

Related: 2 things you can do to slash taxes when you retire


To become a millionaire, it depends on whether you maximize your contributions every year and how old you are when you begin.

Your investment return over the years matters as well.

The max contribution right now is $19,500 without employer matching.

Related: This retirement mistake could cost you over one million dollars

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If you’re over the age of 50, you can make more contributions called a catch-up contribution worth $6,500, bringing the max investment to $26,000.

For 2022, the max limit for contributions will rise to $20,500 and the catch-up will remain $6,500.

The sooner you start, the less you’ll need to max out your contributions every year.

It’s important to remember that investment returns aren’t a guarantee. There are some instances where the money could actually decrease.

Related: There are only a few weeks remaining to manage retirement plans, don’t miss deadlines and pay penalties


If you max out your 401k, here is how many years you’ll need to become a millionaire

  • With a 10% yearly investment return, you’ll need 17.6 years if under the age of 50, and 15.6 years if over the age of 50
  • With a 8% yearly investment return, you’ll need 19.7 years if under the age of 50, and 17.3 years if over the age of 50
  • With a 6% yearly investment return, you’ll need 22.6 years if under the age of 50, and 19.6 years if over the age of 50
  • With a 4% yearly investment return, you’ll need 26.6 years if under the age of 50, and 22.8 years if over the age of 50
  • With a 2% yearly investment return, you’ll need 33.4 years if under the age of 50, and 27.9 years if over the age of 50



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