401(k) balances hit record highReprints
Fueled by a strong equities market, employees' 401(k) plan account balances hit a record high at the end of last year, Fidelity Investments said in an analysis released Thursday.
The average account balance was $91,300 at the end of 2014, up from $89,300 at year-end 2013, a 2.2% increase, the Boston-based mutual fund provider and 401(k) plan administrator reported in an analysis.
About 60% of the 2014 account balance increase was the result of stock market gains, while 40% was due to plan contributions, Fidelity said.
Account balances, not surprisingly, were much higher for employees who have participated in the plans for many years.
For example, in 2014, the average account balance for employees who have participated in the plans for at least 10 years was $248,000, up 11% from $223,500 the prior year.
The analysis is based on 21,000 plans with 13.1 million participants.