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401(k) holder with $1.3 million weighs stopping contributions before retirement
At 7% annual growth, $1.3 million could reach about $3.59 million in 15 years, but stopping contributions would also mean losing employer match dollars that the article says can deliver an immediate 50% to 100% return.
A 44-year-old with about $1.3 million saved in a 401(k) is considering whether to stop contributing now and retire at 59½, aiming to generate at least $100,000 per year in retirement income, according to Yahoo Finance.
Using a 7% annual growth assumption, the article estimates the current balance could compound to roughly $3.59 million in 15 years, which it says would exceed the approximate $2.56 million needed to produce $100,000 annually.
The decision, the article says, depends not only on the retirement “finish line” but also on what the person gives up by stepping back, including forfeiting employer match dollars, which it characterizes as an immediate 50% to 100% return, plus potential annual tax savings and a buffer against early-retirement market downturns.
The piece also notes that using a Roth IRA and a taxable brokerage account can add tax diversification and penalty-free access before age 59½, and it points to evolving withdrawal-rate research, including Morningstar’s 2025 recommendation of a 3.9% starting withdrawal rate for a 30-year, inflation-adjusted spending goal.