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Fidelity IRA Assets Up 53% Since Financial Crisis

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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.