How 401(K) Sprints Can Make You A Multi-Millionaire (By AGE!)
The Personal Finance Podcast
401(k) Basics and 2025 Contribution Limits
Andrew explains account types, 2025 contribution limits, catch-up and super catch-up rules under SECURE 2.0.
In this episode of The Personal Finance Podcast, Andrew introduces the 401k Sprint strategy—a game-changing approach where you max out retirement contributions for just 5-10 years instead of grinding for 30-40 years straight, proving that a 25-year-old who contributes $23,500 annually for only 5 years can retire with over $2 million while someone starting at 60 can still add $430,000 in just 5 years using catch-up contributions. He breaks down the exact numbers for sprints starting in your 20s, 30s, 40s, 50s, and 60s, explains the difference between traditional and Roth 401k strategies, and shows why the 2-on/2-off cycle approach (maxing contributions for 2 years, taking 2 years off, and repeating) can still build nearly $3 million by retirement—proving that short bursts of intense saving combined with compound growth can beat decades of mediocre contributions.
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- Relevant Episodes:
- Should You Stop Using a Roth 401(k) After a Certain Income? (Money Q&A)
- What to Do With Your Old 401(K) (Step-By-Step!)
- Should I reduce my 401(K) Contributions to Save for a House? - Money Q&A
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