Fidelity: Number of people with $1M in 401(k) plans hits record high

The number of Americans with more than $1 million in a 401(k) plan has hit a record high, investment firm Fidelity said Wednesday.

A report released by the firm found that 196,000 Americans now have at least $1 million in a 401(k) plan, up from 180,000 at the end of the first quarter of fiscal 2019.

The number of Americans with at least $1 million in IRAs also hit a record high this quarter at 179,700, up from 168,100 in the first quarter.

{mosads}The average 401(k) account in the U.S. is now valued at $106,000, up 2 percent from its average of $103,700 at the end of the first quarter, according to Fidelity. The average balance of an IRA account also rose and now sits at $110,400.

Americans are now saving more than ever in 401(k) accounts, with the average contribution rising to 8.8 percent in the second quarter of 2019 and nearly one-third of 401(k) accounts seeing their contributions rise this quarter.

Millennials are also contributing to IRAs more than ever before, with the percentage of IRAs owned by millennials increasing by 20 percent since this time last year, according to the report.

Fidelity’s head of workplace investing said that the report’s numbers were a sign that Americans were taking retirement savings seriously.

“The record number of workers who increased their 401(k) contribution rate is a great indication of how focused Americans are getting about saving for retirement,” said Kevin Barry. “Increasing your contribution rate, even by one percent, can make a big difference in your long-term retirement savings – what may seem like a small amount today can have a significant impact on your account balance in 10 or 20 years.”