June 11, 2026
My firm doesn’t offer a 401(k) match. Should I still contribute?
This is a question I get frequently from Big Law attorneys.
That’s because it is very common for Big Law firms not to offer a 401(k) match. They, instead, prioritize top-line salary to stay competitive with other firms of their size. This means associates and partners are left to save for retirement on their own.
So, should you save in your 401(k) even though your firm doesn’t provide a match?
Before I answer, consider this: for a 25-year-old associate, this decision is worth over $6.5 million by age 60. Here's why.
1. When contributing to a 401(k), you’re paying yourself first
Here’s a pattern most people get stuck in: get paid, pay taxes, pay your bills, and save whatever is left over. But the reality is more often than not, nothing is left over. A 401(k) allows you to break that pattern and save first before you even get paid.
I typically recommend that my clients aim to save 20% of their gross income. So, for someone making $250,000/year, they would need to save $50,000 per year. The maximum the IRS allows you to contribute to a 401(k) in 2026 is $24,500. So, by maxing out your 401(k), you’re halfway there already.
2. Take advantage of the 401(k) tax benefits
In 2026, you are allowed to defer up to $24,500 in your 401(k). If you choose the pre-tax option, you can deduct $24,500 from your gross income. That comes with significant tax savings for high-income Big Law attorneys. Here are two examples to show the impact:
- A single, first-year associate making $255,000 (with bonus):
- 32% tax bracket
- $7,840 tax savings
- A married, seventh-year associate making $555,000 (with bonus):
- 35% tax bracket
- $8,575 tax savings
Pro-tip: Those tax savings can be reinvested in another tax-advantaged vehicle like a Backdoor Roth IRA.
But that’s not all. The money invested in your 401(k) also doesn’t get taxed while it grows, only when you withdraw it. That gives it the ability to compound on itself even more, without taxes dragging it down.
3. Harness compound growth through 401(k) contributions
Consistent savings mixed with tax advantages is an extremely powerful combo. In 2026, the 401(k) contribution limit is $24,500. But since 401(k)s were introduced in the early 1980s, that limit has historically increased by about 3.3% each year. Using this assumption, the contribution limit should be around $34,000 by 2036 and $47,000 by 2046.
Assuming a 25-year-old maxes out her 401(k) every year for 35 years, she would have over $6.5M in her account by age 60.*
*Assuming a contribution limit increase of 3.3% per year and an 8% average rate of return over 35 years using annuity due TVM calculation.
But what about inflation?
$6.5M sounds nice, but what does that amount to in real dollars 35 years from now? If you assume that inflation will run at a similar rate as the previous 40 years (2.8%), the inflation-adjusted balance of your 401(k) account will be around $2.5M.
That’s over $4M “lost” to inflation!
But put into perspective, that $2.5M is still a very healthy balance. To keep the math simple, if we assume an average withdrawal rate of 5% (a bit more aggressive than the often-cited 4% rule), that’s roughly $10,400 of income per month in retirement**. Add Social Security income and other savings, and you’ve got yourself a very cushy retirement.
**Whether that amount will be taxable will depend on whether you saved in the pre-tax or Roth option of your 401(k) or if you performed Roth conversions during your early retirement years.
Bottom Line
So, should you contribute to your 401(k) even if your firm doesn't offer a match? Yes! The match was never the main reason to contribute in the first place. A match is a nice bonus when you get it. The real wealth comes from paying yourself first, cutting your tax bill, and letting compounding run for 35 years. None of that requires your firm's help. It just requires you to start.
Need help making a plan?
Maxing out your 401(k) might get you closer to a 20% savings rate, but the remainder is where it gets interesting: Backdoor Roth IRAs, HSAs, taxable brokerage accounts, and the cash flow plan that funds them all without squeezing your lifestyle. That's the work I do with Big Law attorneys every day. SharpEdge Financial is a fee-only financial planning firm built specifically for attorneys at firms like yours.
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SharpEdge Financial LLC is a registered investment adviser registered with the State of Texas. Registration does not imply a certain level of skill or training. The views and opinions expressed are as of the date of publication and are subject to change. The content of this publication is for informational or educational purposes only. This content is not intended as individualized investment advice, or as tax, accounting, or legal advice. Although we gather information from sources that we deem to be reliable, we cannot guarantee the accuracy, timeliness, or completeness of any information prepared by any unaffiliated third-party. When specific investments or types of investments are mentioned, such mention is not intended to be a recommendation or endorsement to buy or sell the specific investment. The author of this publication may hold positions in investments or types of investments mentioned. This information should not be relied upon as the sole factor in an investment-making decision. Readers are encouraged to consult with professional financial, accounting, tax, or legal advisers to address their specific needs and circumstances.