401k Millionaires on the Rise
May 6, 2024
As we continue through 2024, I wanted to share some data that many may find positive. Fidelity Investments just announced that 440,000 retirement savers reached an incredible milestone in 2023: $1 million in their 401(k).
That’s despite market fluctuations and what many thought would be a difficult financial year. In fact, recently released data reveals that the average 401(k) balance rose 14 percent from 2022 to 2023. But that’s not all – Individual Retirement Account (IRA) balances also increased 12% year over year.
On top of that, numerous 401(k) plans with a balance of $1 million or more increased by 20% in the final quarter of 2023. What does this tell us? Savings vehicles, like 401(k)s or IRAs, continue to show resilience and are effective tools for investing in one’s financial future.
In other words, retirement savers demonstrated the benefit of patience and reaped healthy benefits in a year that defied most economists’ expectations.
When workplace retirement plans work with, not against, other retirement plans, it can be a powerful combination. If you have any questions about how your plans can work best together, don’t hesitate to let us know. We’re always happy to help.
For all your retirement planning needs, consider partnering with Omni360. Our dedicated team offers personalized strategies to ensure a secure and comfortable retirement for small-business owners. Contact Omni360 today to start planning the future you deserve.
1. CNBC. com. February 27, 2024, “401(k) millionaire ranks grew 11.5% in 2023.”
2. Once you reach age 73, you must begin taking required minimum distributions (RMDs) from your 401(k) or any other defined contribution plan in most circumstances. Withdrawals from your 401(k) or any other defined contribution plans are taxed as ordinary income and, if taken before age 59½, may be subject to a 10% federal income tax penalty.
Once you reach age 73, you must begin taking RMDs from a traditional IRA in most circumstances. Withdrawals from traditional IRAs are taxed as ordinary income and, if taken before age 59½, may be subject to a 10% federal income tax penalty.
