(NewsNation) — A strong stock market helped propel more retirement savers into the millionaires’ club last year, according to new data from Fidelity Investments.

The number of 401(k) accounts with more than $1 million jumped 20% in the fourth quarter of 2023 compared to Q3, bringing the total number of 401(k) millionaires to 422,000.

Fidelity, which is one of the largest administrators of workplace plans, noted that “positive market conditions” helped push average account balances to their highest level in almost two years.

The average 401(k) balance hit $118,600 in the fourth quarter — up 14% from a year earlier, Fidelity found. Individual retirement account (IRA) balances also grew, up 12% year over year to an average of $116,600.

More than a third (37%) of workers also chose to increase their retirement savings contribution rate last year.

“When it comes to matters like market stability and economic events, 2023 gave us the highs of the highs, and the lows of the lows, but encouragingly, many retirement savers took the long view and stayed the course through it all,” Sharon Brovelli, president of workplace investing at Fidelity Investments, said in a press release.

The new report comes as many Americans are starting to feel better about the economy. Inflation has slowed from its wallet-busting pace in 2022, and economists’ recession fears have started to fade.

But it’s not all good news on the retirement savings front. Last year, 7.8% of workers took a hardship withdrawal from their nest eggs, up from 6.1% in 2022, according to Fidelity.

An uptick in those distributions, which are only available to those experiencing “an immediate and heavy financial need,” suggests more Americans are dipping into their retirement savings to cover their financial needs.

Last year’s withdrawal rate was nearly four times higher than in 2018 when just 2.1% of workers took hardship distributions, Fidelity data shows.

Fidelity’s latest analysis of savings behaviors and account balances comes from more than 45 million IRA, 401(k) and 403(b) retirement accounts.