Fidelity counted a record 769,000 participants with $1 million or more in their 401(k)s at the end of June 2026, about 3% of the 25.8 million it administers. The typical holder is 58 years old and has been saving for about 25 years, and the count rose by 115,000 from the end of March.
The average account held $155,800, so a seven-figure balance is rare. Saving habits sit behind the milestone. In the second quarter, workers put a record 9.6% of pay into their plans, employers added an average of 4.8%, and more than 81% of participants saved enough to collect the full match.
A pre-tax million is not a spendable million
Most 401(k) money goes in before taxes, and withdrawals from a traditional account are taxed as ordinary income. Under IRS rules, required minimum distributions, or RMDs, generally start at age 73, and the starting age rises to 75 for people born in 1960 or later. Missing a required withdrawal can trigger a 25% penalty.
Those withdrawals also feed the formula that decides whether Social Security is taxed. Benefits become taxable once half of a person’s benefit plus other income tops $25,000 for a single filer or $32,000 for a joint return.
Large withdrawals can also trigger income-related Medicare surcharges.
The years before required withdrawals begin
For people who stop working before RMDs begin, the gap years can carry unusually low taxable income. Some use them for Roth conversions, moving portions of a pre-tax balance into a Roth IRA and paying tax at a rate they can control rather than one set later by required withdrawals.
A conversion adds to taxable income in the year it happens, so the size of each portion matters. The right amount depends on your brackets, your other income and how you plan to pay the tax.
Before paying anyone for help, sort your accounts into three piles: pre-tax, Roth and taxable. The mix shows which questions apply to you.
A retiree with mostly pre-tax money has the most to plan. One with a larger Roth share has more freedom in which account to tap first.
When a second set of eyes may be worth it
If you are within a few years of retirement, have $100,000 or more invested, and want a fiduciary to pressure-test your plan, SmartAsset matches you with up to three fiduciary advisors who are legally required to prioritize your interests. Advisors can review tax savings, Social Security strategies, and planning gaps. Matching is free for investors with $100,000 or more.
The questionnaire takes about 10 minutes, asks for a phone number near the end, and lets you control whether and when you respond. See your advisor matches.
If your balance is nowhere near seven figures
The questions stay the same for accounts of smaller sizes: which account to tap first, how withdrawals interact with Social Security and when to start both. If you would like a second opinion, you can compare financial advisors before committing to one.
The first required withdrawal and any Roth conversion draw on the same pool of pre-tax money, and the order you take them in is the plan.
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