401(k) Deferral Rates Reach All-Time High
The average employee 401(k) deferral rate reached the highest in 10 years, finds a T. Rowe Price report.
The report, based on 2017 numbers, found the pre-tax deferral rate was 8.3 percent. That, mixed with market appreciation helped boost account balances. Accounts in 2017, saw an average of a nearly $9,600 increase compared with only a $2,500 increase in 2016.
67 percent of plans offered Roth contributions. The percentage of eligible participants making catch-up contributions reached a 10-year high as well, increasing to 12.2 percent. Plan sponsor adoption of target-date funds also reached a 10-year high, rising to 94 percent.