America’s 401(k) millionaire club just became more crowded. A record 769,000 401(k) accounts held balances of at least $1 million at the end of June 2026, according to Fidelity Investments.

That number jumped 19% from the first quarter of 2026, when Fidelity counted about 645,000 401(k) millionaires. It was the biggest quarterly increase since late 2023, giving long-term retirement savers another reason to celebrate.

The milestone sounds even more impressive when viewed against the wider retirement market. Fidelity based its second-quarter analysis on 27,300 corporate defined contribution plans covering 25.8 million participants. Still, becoming a 401(k) millionaire remains uncommon. Accounts holding at least $1 million represent only about 3% of the 401(k) accounts covered by Fidelity’s data, so seven-figure balances remain far from the norm.

A Strong Stock Market Gave Retirement Accounts a Big Lift

Karola / Pexels / The S&P 500 gained about 15% during the second quarter, marking its strongest quarterly performance since the second quarter of 2020.

That rally delivered a major boost to retirement accounts invested heavily in stocks. People who stayed invested during earlier market swings benefited as share prices climbed, showing why long-term investors often resist making sudden decisions during periods of volatility.

Workers also kept putting money into their retirement plans. The average employee 401(k) contribution rate remained at a record 9.6% during the quarter, according to Fidelity’s figures. Add employer contributions, and the total average savings rate reached 14.4%. That figure sits close to Fidelity’s general guideline of saving about 15% of income for retirement, including contributions from an employer.

Employer matching also continues to matter. Fidelity reported that 81% of participants contributed enough to receive their full employer match, allowing those workers to capture more of the retirement benefits available through their jobs.

These habits helped push average balances sharply higher. The average Fidelity 401(k) balance reached $155,800 during the second quarter, rising 10.5% from the previous quarter and 13.1% from a year earlier. Individual retirement accounts also benefited from stronger markets. Fidelity reported that the average IRA balance reached a record $144,523, giving retirement savers another sign of how strongly investment gains affected household portfolios.

Record Balances Do Not Mean Everyone Feels Ready

The headline numbers can make American retirement savings look remarkably healthy. Yet many workers have a very different view of their own finances, especially after years of higher living costs and pressure on household budgets.

NFP’s 2026 U.S. Retirement Trend Report found that 69% of employees were unsure they could retire comfortably. The same research found that 72% believed they were off track for retirement despite broad access to workplace plans and financial tools.

Some households also have limited room to increase retirement contributions. Housing, food, insurance, childcare, debt payments, and other everyday costs can consume a large share of each paycheck before retirement savings enter the picture.

Americans are also setting a high target for retirement comfort. Northwestern Mutual’s 2026 Planning & Progress Study found that Americans believe they will need an average of $1.46 million to retire comfortably. That figure rose from $1.26 million in 2025. Nearly half of Americans in the study also said they believe there is some chance they will outlive their savings, showing how financial anxiety can remain even when investment markets are performing well.

Bigger 401(k) Limits Give Savers More Room in 2026

Vitaly / Unsplash / The IRS raised the employee contribution limit for most 401(k) plans to $24,500 for 2026, up from $23,500 in 2025.

Employees who are at least 50 years old can generally make an additional $8,000 catch-up contribution if their plan permits it. That can bring their total employee contribution to as much as $32,500 during 2026.

Workers who turn 60, 61, 62, or 63 during 2026 receive an even larger catch-up opportunity under SECURE 2.0 rules. Their higher catch-up limit stands at $11,250, allowing eligible participants to contribute as much as $35,750.