How to Become a 401(k) Millionaire

There are a lot of misconceptions about so-called corporate qualified plans, the best known of which are 401(k)s.1 Much of the misunderstanding stems from several articles about a Fidelity Investments report on how many of its clients had $1 million or more in their tax-deferred savings accounts, a group sometimes referred to as the 401(k) millionaires.

In the raucous online debate that ensued, some commentators suggested that saving $1 million was almost impossible. As someone who runs an asset-management firm with millions of dollars in qualified corporate 401(k) plans, I want to address this assertion. We will a) set the record straight on various dollar amounts that can be contributed to retirement plans; and b) outline a simple path for getting to $1 million.