{"id":9247,"date":"2024-12-08T11:38:54","date_gmt":"2024-12-08T11:38:54","guid":{"rendered":"https:\/\/finderica.com\/number-of-401k-plan-and-ira-millionaires-hits-fresh-high\/"},"modified":"2024-12-08T11:38:54","modified_gmt":"2024-12-08T11:38:54","slug":"number-of-401k-plan-and-ira-millionaires-hits-fresh-high","status":"publish","type":"post","link":"https:\/\/finderica.com\/?p=9247","title":{"rendered":"Number of 401(k) plan and IRA millionaires hits fresh high"},"content":{"rendered":"
<\/span><\/p>\n
\n
\n
\n
\n
<\/span><\/span><\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n
\n

As the markets tested record highs, retirement savers reaped the benefits.<\/p>\n

The average 401(k) plan balance ended the third quarter up 23% from a year earlier, at $132,300 \u2014 the\u00a0highest average on record, according to a new report by Fidelity<\/a>, the nation’s largest provider of 401(k) plans. The financial services firm handles more than 49 million retirement accounts altogether.<\/p>\n

The average individual retirement account balance also rose 18% year over year to $129,200 in the third quarter of 2024.<\/p>\n<\/div>\n

<\/a>Number of 401(k) millionaires jumps 9.5%<\/h2>\n
\n

The number of 401(k) accounts with a balance of $1 million or more jumped to a record 497,000 as of Sept. 30, up 9.5% from the second quarter, according to Fidelity.<\/p>\n

Similarly, the number of IRA-created millionaires increased by nearly 5% to a record 418,111.<\/p>\n

“We are continuing to observe a dedication to saving for retirement, with contributions to these vehicles holding steady if not increasing,” Sharon Brovelli, president of workplace investing at Fidelity Investments, said in a statement.<\/p>\n

Overall, the average 401(k) contribution rate, including employer and employee contributions, now stands at 14.1%, just below Fidelity’s suggested savings rate of 15%.<\/p>\n

“These all-time highs are probably more attributable to market appreciation than anything else, but if contributions remain robust, that’s a good thing,” said Douglas Boneparth, a certified financial planner and president and founder of\u00a0Bone Fide Wealth<\/a>, a wealth management firm based in New York.<\/p>\n

More from Personal Finance:<\/strong>
Biden-era retirement rule may be in jeopardy under Trump
Employers add 401(k) plan match for workers with student loans
‘Dynamic pricing’ was a top contender for word of the year<\/p>\n

Positive savings behaviors were key to improved outcomes, said Mike Shamrell, Fidelity’s vice president of thought leadership.<\/p>\n

A great year for the major indexes also helped. The Nasdaq