Retirement account millionaires rise at Fidelity
FBN's Cheryl Casone on the rise in the number of 401(k) millionaires.
The number of people with 401(k) and IRA balances that topped a million dollars hit a record in the second quarter.
The number of investors with at least $1 million in their 401(k) accounts at Fidelity reached 196,000, according to USA Today.
That is up from the 180,000 in the previous quarter.
IRA millionaires increased to 179,700 from 168,100.
Investors recouped the money that they lost toward the end of 2018.
The average account balances also increase for 401(k) and IRAs by 2 percent and 3 percent respectively.
Helping the accounts were the gains in the stock market which included a 2.6 percent rise in the Dow Industrials and a 3.8 percent increase in the S&P 500.
The report said that another factor helping to boost balances was the fact that employers were automatically enrolling new employees into company retirement plans.
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Employers are also increasing the default contribution rate at 6 percent or higher, although most companies set it around 3 percent.
Workers are also contributing more to their accounts.