401k

miguelmartino

whats the most that anyone can deposit into a 401k retirement plan per year??? i mean THE most that uncle sam will allow????? lets assume for a moment that someone started working at 20 and retired at 70 years of age. if they maxed out what the maximum amount is annually by what the internal revenue service allows, how big or how much would their total package be worth if they spent like half a century working then??? can someone give me an idea of how big or how much their total 401k package would be worth when they retired at 70 assuming that for 50 years on an annual basis they deposited the most that the law would allow for taxation purposes??? im not sure but someone told me that its like 18 or 20k per year or something like that. can someone please give me their opinion. rsvp. thank you.

dunstonh

This is a UK site. Not a US one.

ColdIron

Your circumstances seem to have changed

miguelmartino wrote: »

if someone who has no state pension or 401k (ira) late in life either wins the lottery assuming they cash out all at once or they have some rich uncle who has like one billion dollars stashed somewhere like in some bank or something but told them that they can only have the money when that rich uncle dies which would mean that maybe the money wouldnt be theirs until like 50-65 years of age, how could they use only part of the money to live off of it for the remainder of their life?

bostonerimus

I would ask this question on a US site like

http://www.early-retirement.org

But this year an employee can put $19k into a 401k, 457b and/or a 401a. If you have access to more than one of those accounts at work you can contribute $19k to each one.

So if we assume a $100k salary and $19k into a 401k with a 3% employer match that would be a total of $22k. If the contribution increases by 2% a year for inflation and grows at an annual average of 5% then after 30 years the total will be around $3M.

miguelmartino

they started working at 20 and retired at 70. each year they made about 50k working as a bricklayer. would this be approximate enough? rsvp.

bostonerimus

miguelmartino wrote: »

they started working at 20 and retired at 70. each year they made about 50k working as a bricklayer. would this be approximate enough? rsvp.

Your question is meaningless....how much did they contribute each year, what return did they get? How much do they need to live on? It is certainly possible to build up 401k balances in the millions with enough time and some common sense investing and $1M would sensibly produce $40k in annual retirement income with a very good chance of having a lot left over to leave to the kids.