Fidelity IRA Assets Up 53% Since Financial Crisis

Roth IRA conversions surged last year

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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