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A record number of retirement savers hit seven figures inside their workplace accounts last quarter.
A 401(k) is a tax-deferred account: employees set aside a slice of each paycheck before income taxes apply, the money grows inside the plan over years or decades, and ordinary income tax comes due only at withdrawal.
Fidelity counted 769,000 such accounts above the million-dollar threshold in the second quarter, the highest total the firm has ever recorded.
A 401(k) balance grows two ways: new contributions arrive each pay period, and the existing balance earns returns on whatever the account holds, commonly index funds tied to the broad stock market.
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