A Market Linked $20,000 a year investment can grow at an average of 15% a year – which compounded doubles every 5 years.
For example over a 20 year period each investment of $20,000 would amount to $160,000
Assuming the employee remains at work for 20 years the 20 contributions would be $400,000.
Aggregated investment results for a 20 year period could be $4.8million – Tax Sheltered
The invested period for each $20,000 investment will shorten as the 20 years evaporate. While you remain with your current employer until year 20 ultimately all investment capital can be rolled over intact free of tax **(using a ROBS Plan)