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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