Reply to How do people have massive retirement accounts if it's a $19,500 (or whatever) limit per year?

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Reply to "How do people have massive retirement accounts if it's a $19,500 (or whatever) limit per year?"

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[quote=Anonymous][quote=Anonymous]I feel like I'm not grasping the basics here...  From my read, assuming you don't have your own business and are just an employee, and make enough savings to max out your retirement account, we can only give $19,500 a year, right?  Plus $6,000 to Roth.

So how do people end up with these gagillion dollar retirement accounts?  Did they start saving from age 20?  Is there a way to give more than $19,500 plus $6,000 if you have the income/savings to do so?
[/quote]

Length of time - my DH started working full time at 18, right out of high school.  He IMMEDIATELY started putting 10% of his salary into his 401K.  He has always gotten employee matching (usually up to 5%.)  He only made $16,000 when he first started working.  He's now 52, so 34 years of contributions and earnings.  He still isn't a huge wage earner according to DCUM standards, only $135,000K.  I don't think he's ever put the max in, but he's always done at least 10%, with the 5% matching.  He has $1.4 million in his 401K.[/quote]

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