Were you kicked out of the 401 (k) millionaire club?

You work your whole life and hope to reach this milestone.

Then it happens. You finally get into the 401 (k) millionaire club – at least on paper. Although taxes can technically keep you from $ 1 million, you still have what many others just dream about. You are a millionaire, but not because you were lucky. Rather, you have made contributions for more than 30 years to your retirement account, and give you a main course to an elite club. Or you achieved millionaire status by joining TSP, the federal government's version of a 401[ads1] (k).

In the last decade, when the stock market roared, an increasing number of employees rescued into millionaire status. But what the stock market provides, it also takes away. Volatility at the end of 2018 started many of these workers out of the millionaire's club.

Fidelity Investments reported that for the fourth quarter of 2018, there was a decrease of 406 million sources of 28.6 percent. The number of people with $ 1 million or more in their 401 (k) employer plans dropped to 133,800, down from 187,400 in the third quarter, according to Fidelity, one of the country's largest workplace departure account administrators.

As of December 31, there were 21,432 TSP millionaires, down from 34,128 reported at the end of September, according to the Federal Retirement Investment Investment Board.

"December was brutal," said a Virginia reader whose account fell to six figures. "I try to keep this volatility in perspective and appreciate that I still have a healthy balance, despite the fluctuation. Sometimes I do not look when the market goes nuts, but I found that the check helped me feel safe

Other investors expressed the same feeling. Tipping out of the millionaire zone has not deprived them of keeping the course.

"My 401 (k) has dropped to $ 997,000," Grant S said. ., a software developer from Massachusetts whose accounting is managed by Fidelity. "At the lowest point, it was close to $ 100,000. I've been through a couple of market cycles over the years and learned that everything you can really do is ugly. "Third quarter 2018 marked the 10th anniversary of the beginning of the economic downturn, and things looked good for senior citizens. Average account balances hit record highs, as did the number of millionaires who achieved this status at the workplace.

But then the storm came. President Trump started his trade war with China Investors worried about economic downturn in the United States and abroad, and the Federal Reserve continued to raise interest rates

Average Account Balance for Various Pension Accounts – 401 (k) s, 403 (b) s and IRAs – The 401k (k) for the year was down from $ 95,600, down 8 per cent from $ 104,300. The average tax-free 403 (b) account balance fell to $ 78,700, down from $ 85 100. And the average IRA balance dropped from $ 106,300 to $ 98,400.

If you invest in the long term, the key is not to panic when the market goes through a downturn, Meghan Mu said. rphy, vice president of Fidelity.

"When the market went down, the millionaires didn't know about stocks," Murphy said. "About 98 percent of people continued to contribute through volatility. As the recovery comes, you have more stocks and that will benefit you."

Investors have recently gained a boost in their portfolios following the Federal Reserve newsletter that it took a break in raising interest rates. Stocks ended the month high with the peaks of both the Dow Jones Industrial Average and the S & P 500, which recorded their best January performance since 1987.

Effective this year, workers can contribute up to $ 19,000 annually to a workplace plan as a 401 (k ) or TSP. It's up from $ 18,500 last year. If you are over the age of 50, there is a termination agreement that allows you to contribute an additional $ 6,000 for a total contribution of up to $ 25,000 to an employer-sponsored pension plan.

Murphy said that 23.1 percent of millennia saves recommended 15 percent in their 401 (k), which includes both employee contributions and a company match. Returning five years to the fourth quarter of 2013, only 14.9 percent of the millennia saved 15 percent or more in their 401 (k).

The number of 401 (k) millionaires in plans managed by Fidelity is a small figure – less than 1 percent. Nevertheless, even with the recent downturn, the fact that people can become millionaires within the workplace is their retirement plans, scattered hopes to others, especially young adults. It can take you three decades to achieve this status, but it is possible.

Michelle Singletary can be reached at michelle.singletary @washpost . Com.