Balances in retirement accounts, including 401(k) accounts and IRAs, grew by double digits during the second quarter as the stock market rebounded and investors continued to contribute to their accounts, according to a Fidelity report.
Eighty-eight percent of 401(k) participants contributed to their accounts in the second quarter, off just slightly from the record high of 89% in the first quarter, according to the report.
A Fidelity executive noted that most employers were sticking with matching contributions and said that encourages participation by employees.
“Nearly 90% of employers continued to offer matching contributions to their employees over the last quarter, despite the unsteady business landscape,” Kevin Barry, president of workplace investing at Fidelity, said in a statement.
The report also cited a 20% rise in contributions to IRAs in the second quarter compared to the same period last year and linked that to this year’s extended tax season.
The average 401(k) account held $104,400 at the end of the second quarter, up 14% from the first quarter, but down 2% from a year earlier. The average IRA held $111,500, up 13% from the first quarter and slightly higher than the year-ago average of $110,400.
The Fidelity report reflects data on more than 30 million 401(k) and 403(b) accounts and IRAs.
As our second lead editor, Cindy Hamilton covers health, fitness and other wellness topics. She is also instrumental in making sure the content on the site is clear and accurate for our readers. Cindy received a BA and an MA from NYU.