Your 401(k) may be at a record high. Think twice before making this money move

Even as they feel the squeeze from inflation, workers are saving more than ever. The average retirement account balance just hit a record high, according to a new report from Fidelity. The average IRA now sits at $144,523 and the average 401(k) holds $155,800 – both totals up 10% from the first quarter of the year. The peak in retirement savings tracks with a winning streak for the stock market, which just experienced its strongest quarter of growth since 2020. Fidelity’s data, collected during the second quarter, showed that 401(k)s just notched their biggest balance gains since the end of 2020 too. The average 401(k) savings rate didn’t change much in the second part of the year, hovering around 14.4% for the second quarter in a row. That number takes into account both employee and employer account contributions, as many companies offer some matching cash on retirement accounts. Fidelity recommends that savvy savers tuck away 15% of their annual earnings for retirement – a goal that’s much easier to hit for anyone stashing some coveted employer matching funds. People with IRAs are also saving more. IRA account holders boosted their total contributions by 36% compared to the same…