From 24/7 Wall St. · Jake FitzGerald · · 50s
Fidelity Reveals 401(k) Balance Hits $155,800
Average 401(k) balance now $155,800, but $34,000 owed to IRS by tax deferral.
In brief
Average 401(k) balance now $155,800, but $34,000 owed to IRS by tax deferral. The average 401(k) balance reached $155,800 in 2026, with $34,000 of that balance owing to the IRS due to tax deferral. Originally reported by 24/7 Wall St..
What Fidelity Says
Fidelity reports average 401(k) balance hit $155,800 in 2026.
“Fidelity says the average 401(k) balance hit $155,800.”
The Tax Trap
Up to $34,000 of that balance belongs to the IRS by tax deferral.
“As much as $34,000 of that belongs to the IRS.”
Why It Matters
The tax bill grows yearly as the balance sits untouched.
“The bill grows every year it sits untouched.”
How Taxes Work
Pre-tax 401(k) balances face higher taxes when withdrawn.
“Every dollar in the account is pre-tax. Every dollar of gain is pre-tax.”
RMDs Start Soon
Required minimum distributions begin at age 73 for most retirees.
“Required minimum distributions begin at age 73 for most current retirees”
Tax Strategies
Roth conversions and withdrawal sequencing reduce future tax bills.
“The Roth conversion window lets you fill the 12% or 22% bracket on purpose.”
What Happens Next
Taxpayers must plan for RMDs before the first withdrawal.
“Deciding how the IRS gets paid out of it is the kind of math worth running with a CPA or fiduciary advisor before the first RMD.”
The headline
The average 401(k) balance reached $155,800 in 2026, with $34,000 of that balance owing to the IRS due to tax deferral.
