401(k) Millionaires Count Declines as Retirement Balances Slip in Q1
Average retirement account balances across 401(k)s, 403(b)s, and individual retirement accounts (IRAs) dipped slightly in the first quarter of 2026 due to market volatility.
According to Fidelity Investments’ Q1 2026 retirement analysis, 401(k) balances decreased by 4% from Q4 2025 to hit $141,000. IRA accounts were also down 4% at $131,000, and 403(b) accounts fell 3% to $130,000. The median balance for 401(k) accounts was $32,800, while median account balances for 403(b)s and IRAs were $32,912 and $9,935, respectively.
Fidelity links the drops to stretches of market volatility in the first quarter of the year. The S&P 500 dipped 4.4% during that period, as President Donald Trump announced a war in Iran and as oil and gas prices climbed.
The number of 401(k) millionaires also slipped as a result of the market instability. There were 645,000 total millionaires recorded in the first quarter, down 3% from Q4 2025. Despite the drop, the total number of 401(k) millionaires increased 26% year-over-year.
The number of IRA millionaires went down 2% over the last year but up 32% from the first quarter last year, to reach 571,622.
401(k) and IRA millionaires were likelier to make ongoing contributions to the same retirement account, driving the year-over-year increases. According to Fidelity, the average 401(k) millionaire is close to age 59 and has been saving in the same account for an average of 25 years.
401(k), 403(b) savings rates hit record levels
While account balances marginally fell due to the instability, total savings rates for 401(k) and 403(b) accounts reached record levels. The total savings rate, which includes employer and employee contributions, for 401(k) savers came in at 14.4%, while 403(b) participants put away an average of 12% towards savings. IRA contributions also saw a 29% increase year-over-year, driven by strong Roth demand. Sixty-seven percent of contributions went to Roth IRAs, and Roth conversion transactions increased 41% year-over-year.
Even as total account balances were lower in Q1 2026, they were higher on a longer-term scale. According to Fidelity, the average 401(k) balance increased 11% from Q1 2025 while the average 403(b) balance increased 13% and the average IRA balance was up 7% from Q1 2025.
Nearly one in five, or 18%, of participants increased their savings rate during Q1, likely as a result of automatic increase features, Fidelity finds. Further, the average quarterly employer contribution amount reached a record level of $2,080, up from $2,020 a year ago.
“Retirement savers started the year strong with record-high savings rates and contributions, reflecting the long-term approach they’re taking with retirement preparedness,” said Sharon Brovelli, president of Workplace Investing at Fidelity Investments. “While it can be tempting to make changes to retirement savings during market volatility, it is positive to see participants stay the course with their contributions – an approach that will ultimately strengthen outcomes as retirement nears.”
Generational patterns
Generation Z workers drove a lot of the growth in contributions, with total IRA contributions increasing 65% year-over-year for the age cohort. This was followed by Millennials at a 31% rise.
Over one in five, or 21.4%, of Gen Zers also contributed to a Roth 401(k) account.
Only 5% of Millennial workers changed their 401(k) asset allocation in the first quarter, and 18.4% increased their savings rate.
Amanda Umpierrez is the Managing Editor of 401(k) Specialist magazine. She is a financial services reporter with nearly a decade of experience and a passion for telling stories and reporting news.