Fidelity Reports Record 401k and IRA Balances in Second Quarter of 2026

Fidelity Investments reported that average 401k and IRA balances reached all-time highs in the second quarter of 2026, following a stock market recovery from earlier volatility.

The average 401k balance rose to 155,800 dollars, a 13.1 percent increase compared to the same period in 2025. The average IRA balance reached a record 144,523 dollars, up 10 percent year-over-year. The Dow Jones Industrial Average, Nasdaq Composite, and S&P 500 all posted significant year-to-date growth by the end of the second quarter.

Savings behavior contributed to the gains. The average combined 401k contribution rate, including both employer and employee portions, held steady at 14.4 percent, near Fidelity's recommended 15 percent benchmark. The employee contribution portion alone reached a record high of 9.6 percent. More than 81 percent of 401k participants contributed enough to receive their full employer match.

IRA activity also grew, with total contributions increasing 36 percent compared to the second quarter of 2025.

Despite the record balances, Fidelity identified signs of financial strain. The share of workers with an outstanding 401k loan rose to 19.5 percent in 2026. The percentage of workers taking new hardship withdrawals increased to 3 percent, up from 2.6 percent the previous year.

Financial experts attribute the loan and withdrawal trends to ongoing affordability pressures and inflation. They caution that tapping retirement accounts for immediate needs disrupts compound interest and can establish a habit of using retirement savings for daily expenses.