A record number of 401(k) and individual retirement account holders have accumulated $1 million or more in their accounts, financial services company Fidelity Investments said.
The number of 401(k) millionaires rose 2.5% to 497,000 as of June 30, the end of the second quarter of 2024, while the number of IRA millionaires increased 6% to 398,594, Fidelity said in a data analysis released Wednesday.
The company analyzed 15.8 million IRA accounts and 24 million 401(k) accounts split across 26,000 corporate contribution plans.
The average account balance for 401(k) and IRA holders also saw modest gains.
The average IRA holder has $129,200 in the account, a 1% increase from the first quarter of the year, and the average 401(k) holder had $127,100 in their account, also a 1% increase from the first quarter.
Year-over-year, the average balance of IRA accounts has climbed 14%, while the average balance of 401(k) accounts has risen 13%.
Savings rates stayed the same from the record levels seen in the first quarter at an average of 14.2%. Of that total, 9.8% came from employee contributions and 4.8% came from employers. The average savings rate is as close to Fidelity’s recommended 15% savings rate as it has ever been, the company said in its analysis.
“Although increases were modest, retirement savers in the second quarter of 2024 benefited from the continued upswing of the previous quarter, when contribution levels and average account balances reached record highs,” Fidelity Investments President of Workplace Investing Sharon Brovelli said in a statement.
• Brad Matthews can be reached at bmatthews@washingtontimes.com.
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