Balances for 401(k) retirement accounts hit the “second-highest average on record” in the final quarter of 2024, according to new data from Fidelity Investments.\u00a0<\/p>\n
The financial services company found in its newly-released fourth-quarter retirement analysis that balances for that type of retirement plan<\/a> averaged $131,700.\u00a0<\/p>\n That figure marked a jump of 11% year-over-year, according to Fidelity.<\/p>\n Compared to 2024\u2019s third quarter, however, average balances for 401(k)s posted a 0.5% decline, the analysis showed. The third quarter was when 401(k) plans notched their “highest average on record” for balances, with an average of $132,300.\u00a0<\/p>\n The rate at which 401(k) retirement plan holders socked away money inched up year-over-year to 14.1% in the fourth quarter, according to Fidelity.\u00a0<\/p>\n IF YOU ARE 60 YEARS OLD, NEW 401(K) RULES COULD SAVE YOU MONEY<\/strong><\/a><\/p>\n Similar to 401(k)s, average balances for two other popular retirement vehicles \u2014 IRAs and 403(b)s \u2014 saw small declines of 1% from the third quarter but showed year-over-year increases.\u00a0<\/p>\n Fidelity pegged the average balance for 403(b) accounts at $117,800 in the fourth quarter, up 11% compared to a year ago.\u00a0<\/p>\n Meanwhile, IRA accounts held average balances of $127,543. That\u2019s an increase of 8% from the fourth quarter of 2023, according to the report.\u00a0<\/p>\n Fidelity\u2019s fourth-quarter analysis included over 50 million retirement accounts<\/a>.\u00a0<\/p>\n Overall, the financial services company said people building nest eggs “experienced a year of positive growth” in 2024.<\/p>\n Retirement contribution rates went up for almost 40% of those saving for their golden years, Fidelity also reported. On average, the increase was 2.9%.<\/p>\n THIS MIDWESTERN STATE IS CONSIDERED ONE OF THE BEST PLACES TO RETIRE, NEW STUDY SAYS: SEE THE LIST<\/strong><\/a><\/p>\n “As we have for several quarters now, we observed upwards savings trends<\/a> in Q4. This is encouraging news and is particularly important for many Gen X savers, who are able to make catch-up contributions,” Head of Fidelity Wealth Roger Stiles said in a statement. “This is an important consideration as the April tax deadline approaches where investors may be able to contribute to an IRA for potential tax deductions for 2024.”\u00a0<\/p>\n The deadline for individual tax return filing is April 15, according to the IRS.<\/p>\n Fidelity also highlighted the retirement saving efforts of Generation X \u2014 people born between 1965 and 1980 \u2014 in its latest analysis.<\/p>\n When it came to IRAs, Gen Xers boosted their average contributions 16% year-over-year, according to the financial services company.<\/p>\n