Record number of 401(k) savers have balances over $1 million

(CNN)– A record number of 401(k) savers had balances over $1 million at the end of the first quarter this year.

According to fidelity investments, 485 thousand accounts had over $1 million in savings.

That’s up 15% from the 422 thousand accounts reported at the end of 2023 and 43% higher than a year ago.

The average balance was $1.58 million. The data is based on 23 million plan participants at Fidelity.

So how did the so-called ‘401(k) millionaires’ do it?

Fidelity said the average participant with a balance over $1 million has been saving for 26 years and contributes 17% of their income.

That includes any matches they receive from their employer.