Fidelity Counts a Record 769,000 401(k) Millionaires, Up 19% in One Quarter

The number of 401(k) accounts at Fidelity Investments holding at least $1 million reached a record 769,000 at the end of June, up from 645,000 at the end of March. The figures come from Fidelity's Q2 2026 retirement analysis, which drew news coverage beginning September 4, 2026, and reflect both a strong quarter for stocks and record savings rates.

What the data shows

The 19% quarterly jump in millionaire accounts came as the S&P 500 gained 15% in the second quarter, CBS News reported. The group represents about 3% of the 25.8 million accounts Fidelity administers. Averages remain far lower: the average 401(k) balance was $155,800, up 10% from the prior quarter and 13% from a year earlier. Average IRA balances were $144,523 and average 403(b) balances $145,000.

Saving behavior held at record levels. The total 401(k) savings rate, combining employee and employer contributions, was 14.4%, with employees contributing a record 9.6% and employers 4.8%. Fidelity said 81.2% of participants received the full employer match. Roth use is growing among younger workers: 21.9% of Gen Z participants and 20.1% of millennials contributed to a Roth 401(k).

Who is affected

Seven-figure balances belong mostly to long-tenured, higher-income savers who have contributed heavily for years and stayed invested through market swings. For many of them, most of the money sits in traditional pretax accounts. Every dollar withdrawn from those accounts is taxed as ordinary income, which means the headline balance overstates what the owner can actually spend. The larger the account, the more its eventual tax bill depends on decisions made years before withdrawals begin.

The after-tax math

The IRS requires minimum distributions from traditional accounts starting at age 73, calculated by dividing the prior year-end balance by a life expectancy factor. Under the Uniform Lifetime Table cited in the IRS required distribution FAQs, the divisor at 73 is 26.5.

Example: a retiree with $2,000,000 in a traditional 401(k) at 73 would face a required withdrawal of roughly $75,500 in the first year, stacked on top of Social Security, pensions and investment income. Because the divisor shrinks each year, the required percentage rises with age, and a portfolio that keeps growing can push distributions higher over time. Missing a distribution triggers a 25% excise tax on the shortfall, reduced to 10% if corrected within two years.

Roth money works differently. The IRS does not require withdrawals from Roth IRAs or designated Roth 401(k) accounts during the owner's lifetime. A household with meaningful balances in both pretax and Roth accounts has more control over how much taxable income shows up in any given year, which is the practical case for mixing account types while still working.

Moves to discuss with your advisor

• Checking whether the employer plan offers Roth contributions, and whether a split between pretax and Roth fits expected tax rates in retirement.
• Projecting future required distributions from today's balance under a range of growth assumptions.
• Considering how Roth or after-tax savings could be used to manage brackets once withdrawals begin.
• Reviewing beneficiary designations, since heirs inherit the embedded tax along with the account.

What to watch

Millionaire counts track the stock market closely and can fall as quickly as they rose. Fidelity's third-quarter report will show whether the gains held. For savers already past $1 million, the more durable question is how much of that balance will remain after taxes.

After TAX is an independent publication. Articles are general information, not tax, legal or investment advice. Consult a licensed professional about your situation.