Special Trivia Question for 6/2/26 (after-tax 401(k) contributions):

Imagine you open a Solo 401(k) and contribute the annual additions limit at the end of every year from 2026 - 2035.
The annual additions limit increases by $1,500 every year with inflation (It is $72,000 in 2026, and $85,500 in 2035).
The investments grow 8% in value annually.
After 2035, your plan is to work part-time just enough to cover expenses, and then retire completely after 2045.
What is the value of the Solo 401(k) account at the end of 2035 (rounding to nearest $100k)?

A. $1.6 million
B. $2.1 million
C. $2.4 million
D. $2.8 million

Compounding has rightly been described as the eighth wonder of the universe, and this illustrates why. Less than a million dollars of 401(k) contributions sets you up to go part-time after 10 years and then retire completely after 20 years.

What if you add $7,500 (adjusting contribution amounts for inflation) in Backdoor Roth contributions for ten years? Add another quarter million to that total.