How Many Years of Maxing Out a 401(k) Does It Take to Become a Millionaire?

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Though a 401(k) isn’t your only choice when it comes to retirement savings plans, what makes it such a valuable tool is the fact that its annual contribution limits are much higher than those of an IRA. Currently, workers under 50 can save up to $19,500 in a 401(k) per year, while those 50 and older get a $6,500 catch-up that brings their annual limit up to $26,000.

If you have access to a 401(k) plan, you don’t just have an opportunity to save a bundle — you have a solid shot at becoming a millionaire in time for retirement. In fact, if you start maxing out that account at an early enough age, you might hit millionaire status years before retirement is even on your radar.

Image source: Getty Images.

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