If you’ve ever scrolled through personal finance forums or Reddit threads like r/MiddleClassFinance, you’ve probably asked yourself: how on earth are so many people maxing out their 401(k) contributions?
In 2025, that limit sits at $23,000 per year for those under 50, and $30,500 if you’re 50 or older.
That’s a massive chunk of income for the average worker. And yet, thread after thread is filled with people casually stating they max theirs out, some even doing it early in the year.
Are we living in the same economy?
Everyone Seems Rich—Or Deep In Debt
A Reddit post from a 55-year-old middle American earning over $150,000 captures this confusion perfectly.
He says he has retirement savings, a mortgage, and no major debt, yet feels “middle class.”
When visiting coastal cities or upscale suburbs, he says, “I wonder if there are tons of rich people? Are we being lied to that it’s only a few? Or maybe people are in debt to their eyeballs trying to keep up with the Jones’.”
The responses were revealing. Some people insisted, yes, there are a lot of rich people, not because the percentages are high, but because the U.S. is a huge country.
“Yup America is 330 million people. Narrow down to the 5% richest people, and you’re talking about 15 million people. That’s a lot of people with a lot of money,” one person wrote.
Another added, “There are something like 2.5 million households in the US with $2M or more. So while some of that is debt, there are, in fact, a lot of rich people.”
Others pointed out how easy it is to look rich while being financially fragile.
“You have to remember, being leveraged to the hilt can still be living paycheck to paycheck,” one person said.
Old Money, Dual Incomes, And Good Timing
What many people overlook is how much timing and background play a role.
Several commenters noted that many seemingly “rich” people inherited property or bought homes decades ago before prices exploded.
“There are a ton of people who have inherited beach houses, or purchased them a while ago. Not everyone you see with a beach house paid 4 million,” one person wrote.
Others emphasized dual-income households as a massive advantage.
“A lot of people are in a dual-income household. So what’s $150K for your household is $200K+ for your peers,” another person added.
Some People Just Earn Way More
Some Redditors said maxing out a 401(k) isn’t just about discipline or sacrifice, it often comes down to earning a lot more than the average person.
“Yes, many well-off folks out there. I also used to believe that high incomes (500k+) were not really that common, yet they apparently are for dual-income educated households (despite statistics saying otherwise),” one person wrote.
“On this site, of course, nearly everyone seems to be making $250k to over $1 mil at their tech jobs.”
Another added, “With the way the stock market has been going the past decade and a half, it should be no surprise that many have become multi-millionaires.”
On the topic of wealth distribution, a user pointed out: “Percentage-wise wise that’s not many, number-wise, that’s a ton.”
So, What’s Really Going On?
Some people max out their 401(k)s because they have dual incomes, high earnings, no debt, inherited wealth, or made smart early choices.
Others do it by making trade-offs and living below their means. And yes, some people just look rich because of debt, luck, or optics.
The numbers show both things can be true: there are millions of wealthy Americans, and millions more struggling.
So if you’re baffled, you’re not alone.
In a country this unequal, it can absolutely feel like we’re living in two different economies.