The average balance in Fidelity Investments’ IRA accounts grew by 53% to $81,100 in the five-year period to the end of the 2012 tax year.
Fidelity’s annual analysis of its approximately 7 million IRA accounts, released Tuesday, also showed that total contributions increased by 7.5% from tax year 2008 to 2012, with the average contribution reaching $3,920 in the last tax year.
“Age-appropriate asset allocation strategies, market appreciation, and annual contributions all played a part in driving balances higher,” Fidelity Investments vice president Ken Hevert said in a statement.
Fidelity said investors in their 60s continued to save the most in their traditional and Roth IRAs. For tax year 2012, they contributed on average $4,910 to Traditional IRAs and $4,840 to Roth IRAs.
As tax law changes were being debated on Capitol Hill in 2012, Roth IRA conversions increased by 12% year over year and by 52% year over year for the month of December.
Overall, Fidelity conducted more than 101,000 Roth IRA conversions with investors in 2012.
Fidelity IRA balance trends across all age groups:
Age Range
Average IRA Balance At End of 2012 Tax Year
Average IRA Balance At End of 2008 Tax Year
Percentage Increase
20-29
$9,300
$5,800
60%
30-39
$20,700
$10,100
105%
40-49
$42,500
$22,400
90%
50-59
$75,700
$41,900
81%
60-69
$127,800
$75,000
70%
70+
$164,300
$110,500
49%
All Ages
$81,100
$52,900
53%
Full contribution rates with age breaks:
Age Range
Average Roth IRA Contribution (2012 Tax Year)
Average Traditional IRA Contribution (2012 Tax Year)
Overall Average IRA Contribution (2012 Tax Year)
20-29
$3,260
$3,170
$3,170
30-39
$3,280
$3,900
$3,320
40-49
$3,480
$4,090
$3,590
50-59
$4,490
$4,780
$4,480
60-69
$4,910
$4,840
$4,710
70+
$4,750
$4,520
$4,640
All Ages
$3,830
$4,400
$3,920
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Check out Where Does the Money Go in IRAs? on ThinkAdvisor.
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