No. of Recommendations: 3
401k plans have only been around for 30 years. You're pretty good at spreadsheets. If a person is contributing the pre-tax limit for all 30 of those years, what return would they need to earn to reach $1 million? I wonder if large contribution by the employer was needed to reach $1 million.

I would think another reason why so few reach $1 million is that they roll over their 401ks instead IRAs when they leave their employer. Another reason is that fewer employers offered them when they first became available.

Here's a good article on the history of the 401k. In the article, they give the contribution limits over the years in case anyone is interested in estimating the contributions needed to reach $1 million.

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