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Retirement Balances Hit Records as 2026 Contribution Caps Rise

After six consecutive quarters of gains, stronger balances set up workers to adjust contributions under higher 2026 thresholds.

Overview

  • Fidelity’s Q3 data show average 401(k) balances at $144,400, up 9% year over year, and average IRA balances at $137,902, up 7%.
  • The count of seven-figure accounts reached new highs, with 654,000 401(k) millionaires and 559,181 IRA millionaires as of September 30, 2025.
  • Workers kept contributing at an average 14.2% rate including employer matches, just shy of Fidelity’s 15% guidance.
  • For 2026, caps rise to $24,500 for Roth 401(k)s and to $7,500 for IRAs for those under 50, with a $1,100 catch-up lifting the 50-plus IRA limit to $8,600.
  • Roth use is expanding, particularly among younger savers, while 401(k)s can restrict investment choices and early withdrawals typically face a 10% penalty barring specified exceptions.