Balances in active 401(k) plans on the rise; Stock market, higher contributions spark growth.(News)

Investment News, August, 2006

Byline: Lisa Shidler Fidelity Investments' annual study of 401(k) plans found that the average account balance of active participants climbed 13% to $72,000 in 2005. The seventh edition of Fidelity's "Building Futures'' report analyzed more than 9 million participants in about 12,000 corporate defined contribution plans serviced by Fidelity at the end of 2005.

In 2004, the average 401(k) balance of workers who remained active in a 401(k) plan was $63,000. To be sure, overall stock market conditions contributed to the increase, as did an increase in employee contributions, according to Fidelity. Overall, the average 401(k) balance of active and non-active participants had climbed to $62,500 by the end of 2005, a modest 3% increase from the...

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