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There is now a record number of 401(k) and IRA millionaires

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A pedestrian walks past a stock ticker at a Fidelity Investments office in Boston, Massachusetts.

Brian Snyder | Reuters

Thanks to record-breaking markets and more retirement savings, there are a record number of 401(k) and IRA millionaires in the United States.

Fidelity has released its quarterly analysis of retirement trends, which has become increasingly relevant as baby boomers are now retiring in record numbers.

The study found 441,000 IRA or 401(k) accounts they manage had balances of $1 million or more, a new record. Fidelity is the largest 401(k) provider in the U.S.

Still, 401(k) and IRA millionaires are relatively rare: Fidelity manages 27.2 million 401(k) and IRA accounts, so only 1.6% of those accounts have $1 million or more in them.

As for the rest of us, there’s good news and bad news, particularly for those at or near retirement.

The good news:

  1. Average 401(k) and IRA balances have hit record levels. The average 401(k) balance rose to $112,300, a 7% increase from last quarter’s balance of $105,200. The average IRA balance was $115,400, also a new record.
  2. It’s not just because the markets are up — employees are saving more. One-third of plan participants increased the amount they were saving by an average of 3%.
  3. A record number of workplace plans (32%) offered a managed account, which provide workers with professional planning and support. That support is a big confidence booster for savers.
  4. Automatic enrollment is catching on — a record 35% of employers…



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