Fidelity: 401(k) millionaires hit record 595,000 accounts

Fidelity Investments says the number of 401(k) accounts worth $1 million or more has climbed to a record 595,000, the highest tally the firm has ever reported. The jump reflects a market rebound and steady contribution behavior from savers who did not blink during the spring turbulence.

The headline number

The number of 401(k) accounts with a balance of $1 million or more jumped to 595,000 as of June 30, up 16% from the first quarter, according to Fidelity. That is up from 512,000 at the close of March and greater than the previous high of 537,000 set late last year.

The number of IRA-created millionaires also increased by 16% to a record 501,481.

Balances across the board

The average 401(k) balance jumped 8% from a year earlier to $137,800, a record high, Fidelity found. The average individual retirement account balance also rose 5% year over year to $131,366.

Average balances for other plans also climbed: 403(b) accounts gained 9% to $125,400, while individual retirement accounts rose 5% to $131,366.

Do you want to see how to make more plays? Do you want to find gains yourself?

Unusual Whales helps you find market opportunities through our market tide, historical options flow, GEX, and much, much more.

Create a free account here to start conquering the market with Unusual Whales.

Why the count moved

Savers largely stayed put while equities bounced. Despite the turbulence early in the quarter, only 5.5% of retirement savers made a change to their 401(k) asset allocation in Q2. Of this group, more than eight in 10 (82.5%) employees made only one change.

The average 401(k) contribution rate, including employer and employee contributions, largely held steady at 14.2%, just shy of Fidelity’s suggested savings rate of 15%.

Who these millionaires actually are

The average 401(k)-created millionaire is roughly 59 years old and has been in their employer’s plan for an average of 25 years. Plus, they are seriously all in when it comes to saving. Their average individual savings rate is about 17.6%. If you add employer matches, it totals 26.2%.

Those 595,000 millionaire accounts represent only about 2.4% of Fidelity’s total 401(k) participant base of nearly 24.6 million people. That means for every person who crossed the seven-figure threshold, roughly 40 others haven’t.

Options market and stocks to watch

Retirement flows are a long-duration bid for large-cap equities and the asset managers that custody them. Traders may want to watch:

SPY and QQQ: broad index ETFs that soak up target-date and passive 401(k) contributions each pay period.

BLK and VTI: watch for AUM commentary tied to retirement flows, particularly on target-date and index funds.

SCHW: a proxy for retail retirement asset gathering and IRA rollover activity, which Fidelity’s data suggests is trending up.

For more market coverage, see Unusual Whales news.

Want more market intelligence? Create your free Unusual Whales account for options flow, market tide, GEX, and the full toolkit.