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Military Finances 201: Number of 401(k) and TSP Millionaires Hits New High Thumbnail

Military Finances 201: Number of 401(k) and TSP Millionaires Hits New High

Investment Retirement Funding TSP

In the world of retirement savings, becoming a “401(k) millionaire” is a significant milestone. According to Fidelity Investments, the end of 2023 saw a record high of 422,000 401(k) millionaires.1 We're not sure whether this number includes the 116,827 millionaires in the Thrift Savings Plan (TSP) or not. In either case, this news is a cause for celebration and a testament to the power of consistent saving, smart investing, and the long-term benefits of employer-sponsored retirement plans.

Let's look at what this milestone means for the future of retirement.

What Is a 401(k)/TSP Millionaire?

Firstly, let's clarify what it means to be a 401(k)/TSP millionaire. This term refers to individuals who have accumulated at least one million dollars in their 401(k) or TSP retirement accounts. These accounts, offered by many employers and the Federal Government, allow employees to contribute a portion of their salary on a pre-tax or Roth basis, with potential employer matches (for civilians, government civilian employees and military members covered by BRS) and tax-deferred or tax-free growth.

The 401(k)/TSP Millionaire Milestone

Recent reports have shown a substantial increase in the number of 401(k) and TSP millionaires across the country. According to data from Fidelity Investments, one of the largest 401(k) providers in the U.S., the number of savers with million-dollar-plus 401(k) accounts has hit a record high. In fact, as of the last reporting period, there were over 400,000 Fidelity 401(k) accounts boasting balances of $1 million or more.1 TSP millionaires increased by 23% in 2023.

This significant milestone is a result of various factors aligning, including a decade-long bull market, increased contribution limits, employer matches, and diligent saving and investing habits by account holders.

The Power of Consistency

One of the key lessons from the rise of 401(k)/TSP millionaires is the power of consistency. These individuals didn’t amass their wealth overnight. Instead, they diligently contributed to their retirement accounts, often taking advantage of employer matches to maximize their savings potential.

Even small, regular contributions can add up significantly over time, especially when combined with the potential for compound growth. This long-term approach to saving and investing is a powerful strategy for building wealth, as evidenced by the growing number of 401(k)/TSP millionaires.

The Role of Smart Investing

Another crucial factor in the success of 401(k)/TSP millionaires is smart investing. These individuals often diversified their investments, spreading their money across various assets classes. By doing so, they mitigated some risk while also taking advantage of market growth.

The Future of Retirement

The rise of 401(k) millionaires is not only a personal achievement for those individuals but also a positive sign for the future of retirement, in the U.S.A more people reach this milestone, it signals a shift towards greater financial security in retirement.

The increasing number of 401(k) millionaires is a noteworthy achievement that demonstrates the effectiveness of disciplined saving, smart investing, and long-term planning. These investors have shown that with consistent effort and sound financial decisions, the goal of a financially secure retirement is within reach.

Military Finances are Different

Attaining a balance of $1M in your TSP or later in a 401(k) can go a long way towards retirement. One potential benefit you'll have as a military retiree is your pension. It opens up significant opportunities and introduces flexibility in your retirement planning that your civilian counterparts don't enjoy. That increased flexibility is one of the many reasons why we think you should work with a financial planner or advisor that deals with Active and Retired Senior Military Officers and NCOs each and every day. If you'd like to find out how we work with military members, active or retired, like you, use the button below to schedule a free initial consultation.

If you found this article useful, you might like the following blog posts:

Retired Military Finances 201: I Contributed Too Much to my 401(k). Now What?


Retired Military Finances 101: A Guide to 401(k) In-Service Withdrawals for Employees


Retired Military Finances 201: What Does a Company Merger Mean For My 401(k)?



  1. https://www.washingtonpost.com/business/2024/02/28/401k-millionaires-club/
  2. https://www.investopedia.com/terms/t/target-date_fund.asp

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