(1) Contribution: 401k and IRA Contribution Limits and Catch Up For People Over 50 Years Old
The graph below shows the total amount (including both 401k and IRA) one person can contribute to his/her retirement funds each year from 1995 to 2020. This total annual contribution does not include employer match.
If you contribute the maximum amount each year, the total 401k funding could reach $376,740 and IRA funding could reach $105,000 for the 26 years from 1995-2020 without considering any employer match or any investment returns.
(2) Final Amount: Invest the Retirement Funds With A Conservative 5% - 6% Annual Return
If you invest these funds with a 5% return, the final retirement amount could reach $900,000. With a 6% return, the total could reach $1,033,553 next year (Year 2020).