The average rate of return on a 401(k) generally ranges from 5% to 8% per year based on market conditions. However, the actual rate of return on a 401(k) depends on various factors such as the investment selection, fees, contributions, and asset allocation. A good rate of return on a 401(k) depends on how it is invested and varies from person to person. It is important to note that the average rate of return is just an estimate and not a guarantee. To maximize returns, it is recommended to contribute at least as much as the employer match, have a well-diversified portfolio, and review the annual returns periodically.