Fidelity: Average 401(K) Balances At Record High

February 20, 2013

Fidelity Investments released its quarterly analysis of 401(k) plans, which showed the average balance had increased to another record high by the end of 2012.

In a release dated February 14, the Company noted that the average 401(k) balance hit $77,300 at the end of the year, up from $69,100 one year earlier, an increase of 12 percent. The fourth- quarter average balance tops the previous quarter's high of $75,900. About two-thirds of the 2012 increase was attributable to market action while one-third was due to participant contributions.

"It's encouraging to see how continued savings combined with a healthy equity market have led to another record-high balance for 401(k) savers," said James MacDonald, president, Workplace Investing, Fidelity Investments. "Our efforts at Fidelity are focused on keeping participants engaged in the retirement planning process by providing the tools and support to help them better understand where they are in relation to their goals as well as steps they can take to achieve better outcomes."

Recent legislative provisions have raised awareness of Roth 401(k) opportunities for workplace participants, such as tax-free growth potential and tax-free withdrawals for them and their heirs4. Regulations now allow participants to convert money in existing qualified savings plans to a Roth account, should their plan include the investment option5. Today, 37 percent of workplace retirement plans offer a Roth savings option, up from 12 percent five years ago. Of these plans, 12 percent of them offer the Roth in-plan conversion option.

Fidelity Investments is a provider of financial services.

More information:

http://fidelity.com

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Copyright:  (c) 2013 ProQuest Information and Learning Company; All Rights Reserved.
Source:  Proquest LLC
Wordcount:  264

 


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