According to a Fidelity Investments analysis of over 30 million retirement accounts, the number of 401k millionaires increased by 34% to $133,000 since the end of 2018. The number of IRA millionaires also increased from 138,800 to 168,100 in the 4th quarter of 2018.
Following are some other key items from the quarterly analysis:
Balances Up: The average 401k balance rose to $103,700 in first quarter of 2019, a 9% jump from 4th quarter 2018.
Record Employee Contributions: Average contribution increased in the first quarter of 2019 by 15% to $2,370 from the prior year.
Record Employer Contributions: The average 401k employer contribution reached $1,780 in first quarter — a record high and a 6% increase from a year earlier.
10-Year Anniversary of the 2008 Financial Crisis
The Fidelity Investments report also compared the same accounts of 1.64 million individuals who continued to have accounts after the 2008 financial crisis an reported the following:
| Group | Average 401(k) Balance – Q1 2009 | Average 401(k) Balance – Q1 2019 | Cumulative Percentage Change |
| Overall | $52,600 | $297,700 | 466% |
| Millennials | $7,000 | $129,800 | 1,762% |
| Gen X | $37,000 | $268,900 | 626% |
| Baby Boomers | $76,000 | $357,200 | 367% |
Closing Comments
My solo 401k Financial was founded in 2009 and services over 8,000 accounts. A quick glance at our book of business also paints a similar picture to the Fidelity report analysis. For example, we have seen a large increase year over year in the number of solo 401k clients who have used our Form 5500-EZ filing services which applies once the total fair market value of the solo 401k plan exceeds $250,000. Many of our solo 401k clients have also steadily raised their annual contribution amounts each year.
