Quote:
Originally Posted by disneysteve
I was curious about the $1 million figure. If you were to max a 401k at the current limit of $17,000/year and earn an annual return of 7% it would take you 23 years to amass $1 million. Considering that the limit was just raised to 17K for 2012, doing it in the past would have taken even longer (unless you managed better returns). No surprise that only a tiny fraction of participants have achieved that milestone. Very few people even stay in the same job that long.
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You don't have to stay at the same job to keep your funds in the same account. My DH rolled his old 401K to his new one. Also, for the 50 and over crowd, you can save $22,500/year in your 401K.
It makes sense that the people maxing out their 401Ks are in an income bracket that makes them ineligible to fund any IRAs, so their retirement savings goes into the 401K.