Remember your taxes
The $1 million goal may not be the right benchmark for everyone. Some workers will need more, and some will require less. Either way, once you start taking out funds from your $1 million 401(k), remember you’ll also owe taxes on those withdrawals.
“$1 million in a tax deferred account, like a workplace 401(k), is really not $1 million because you have not paid taxes on that money yet. That can be an unpleasant realization for people.” Peev says. “This is why it is so important to save in both tax-deferred and after-tax accounts.” Consider Roth 401(k)s and Roth IRAs to further diversify your nest egg.