How Long It Takes To Become a Millionaire Through Your 401(k)

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According to a recent report by Fidelity, the number of 401(k)-plan millionaires eclipsed 544,000 out of just 24 million plan participants. This is an increase of 9.5% from the previous quarter, showing that long-term investors have been riding the stock market highs to millionaire status.

But what exactly does it take to become a 401(k) millionaire, and is it possible for us regular folks? Let’s break down the math behind building up a $1 million 401(k) balance — and how long it might take.

401(k) Investing Limits

Before we dive into the math of investing $1 million into your 401(k) account, it’s important to review the investing limits of the account itself.

As of 2025, the IRS limits you to $23,500 in contributions to your employer’s 401(k) account. This means you can defer nearly $2,000 per month into your 401(k) plan — and receive a tax deduction at the same time.

401(k) Employer Match

Your employer can also match those contributions — up to 25% of your total compensation for the year. So, if you make $100,000, your employer can add an additional $25,000 to your 401(k) plan.

Most employers match a smaller amount, say, 50% of your contributions up to 6% of your salary. So, you’d put in $6,000, and they would put in $3,000.

Employer matching amounts don’t count against your $23,500 total for the year.

How Much You Need To Invest To Become a 401(k) Millionaire

Now that you know the contribution limits, we can calculate how much you need to invest to become a 401(k) millionaire.

Here are some assumptions to make our calculation:

• Investing in a target date fund, mostly invested in stock market index funds
• Average 7% returns each year
• You can invest up to the maximum $23,500 each year, plus receive a $3,000 employer match (total $26,500 invested).

Here’s how your 401(k) account could grow over time, per Investor.gov’s Compound Interest Calculator:

In this scenario, you’d need to invest $23,500 every year for 20 years in your 401(k) account and receive a $3,000 match to hit the $1 million mark.

How To Invest Less and Still Have a $1 Million 401(k) Account at Retirement

While it would take 20 years to hit $1 million in your 401(k) account while investing nearly $2,000 per month, this might be too much for some investors.

But don’t lose hope: You can still retire with a $1 million 401(k) account if you simply give it more time to grow.

Compound interest works best over longer periods of time, so here’s a scenario where you can invest just $500 per month and still retire a millionaire.

Using the same 7% return assumption from the last example, here’s how long it takes to get to $1 million in your 401(k) account investing only $500 per month. Figures are from the Compound Interest Calculator:

In this scenario, if you invest just $500 per month into your 401(k) account, it will take around 38 years to become a 401(k) millionaire.

Better Returns Means 401(k) Millionaire Faster

While it can take a while for your investments to grow to $1 million or more, getting better investment returns can speed up the process. Of course, there’s no guarantee with investment returns, and past performance does not guarantee future results.

But here’s how different rates of return can impact your journey to millionaire status in your 401(k) account.

If you’re investing $500 per month into your 401(k) account, here’s how long it takes to become a millionaire based on your average rate of return, per the Compound Interest Calculator.

• 5% average return = 46 years
• 6% average return = 42 years
• 7% average return = 38 years
• 8% average return = 35 years
• 9% average return = 33 years
• 10% average return = 31 years

As you can see, picking the right investment asset allocation for higher long-term returns can have a massive impact on how long it takes to hit $1 million in your 401(k) account.

Conclusion

The number of 401(k) millionaires is on the rise. But this is only possible due to consistent investing over a long period of time.

You, too, can hit the $1 million mark in your 401(k) account but investing each and every paycheck for decades on end. But it’s important to understand what you’re investing in, the types of investments available, the average expected returns, and your employer match.

If this is all a bit overwhelming, working with a licensed financial advisor can help you build a plan to maximize your 401(k) investments for retirement.

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