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KEY POINTS Fidelity says a record 441,000 IRA or 401(k) accounts it manages had balances of $1 million or more.

The number represents 1.6% of the 27.2 million IRA and 401(k) accounts managed by Fidelity.

The average 401(k) balance rose to a record $112,300, a 7% increase from last quarter's balance of $105,200.

Employees are saving more: One-third of plan participants increased the amount they were saving by an average of 3%.

Thanks to record-breaking markets and more retirement savings, the number of 401(k) and IRA millionaires has reached a new record, according to Fidelity. Fidelity, the largest 401(k) provider in the United States, released its quarterly analysis Thursday. The report on retirement trends has become increasingly relevant as baby boomers retire in record numbers. The study found a record 441,000 IRA or 401(k) accounts Fidelity manages had balances of $1 million. Still, 401(k) and IRA millionaires are relatively rare: The number of retirement millionaires represents 1.6% of the 27.2 million IRA and 401(k) accounts managed by Fidelity. As for the rest of us, there's good news and bad news, particularly for those at or near retirement. The good news: Average 401(k) and IRA balances have hit record levels. The average 401(k) balance rose to $112,300, a 7% increase from last quarter's balance of $105,200. The average IRA balance was $115,400, also a record. It's not just because the markets are up — employees are saving more. One-third of plan participants increased the amount they were saving by an average of 3%. A record number of workplace plans (32%) offered a managed account, which provides workers with professional planning and support. That support is a big confidence booster for savers. Automatic enrollment is catching on — a record 35% of employers automatically enrolled new workers in their 401(k) plan. Studies have consistently shown that automatic enrollment has been a major factor in increasing savings. Too many people don't act affirmatively to start saving--automatic enrollment does that for them.

The bad news

Drill down into the results, and the situation is particularly difficult for baby boomers — the huge segment of society born between 1946 and 1964 who are now entering retirement age in record numbers. Boomers — they are now 56 to 74 years old — have an average balance of $210,400, but it's well-known that small groups of super-savers — the 401(k) millionaires — push the averages up.