401(k) Plan Asset Allocation, Account Balances, and Loan Activity in 2023

Key Findings:

401(k) plans draw many young and newly hired workers into saving for retirement. At year-end 2023, 41 percent of 401(k) plan participants were in their twenties or thirties, and 23 percent were in their forties. Nearly half of 401(k) plan participants had five years of tenure or less at their current employer, including just over one-quarter who had two years of tenure or less.

More 401(k) plan participants held equities in 2023 than in 2007, before the onset of the Global Financial Crisis. At year-end 2023, 97 percent of participants held some portion of their assets in equities—through equity funds, the equity portion of balanced funds, and company stock. This compares with 87 percent of participants at year-end 2007.
Compared with 401(k) plan participants in 2007, participants in 2023 obtained a higher share of their equity exposure through balanced funds, such as target date funds, and a lower share through equity funds and company stock. At year‑end 2023, 71 percent of participants held target date funds, with those funds accounting for 42 percent of assets. This compares with 26 percent of participants and 8 percent of assets in 2007. Also known as lifecycle funds, these funds are designed to offer a diversified portfolio that automatically rebalances to be more focused on income over time.
On average, younger 401(k) plan participants allocate a higher share of their assets to equities than older participants. At year-end 2023, 75 percent of the assets in the EBRI/ICI 401(k) database were invested in equity securities. That equity share varies by participant age, however, from 90 percent of the assets of participants in their twenties to 61 percent of the assets of participants in their sixties.
401(k) plan loans are widely available, but a small share take them. At year-end 2023, 77 percent of 401(k) plan participants were in plans allowing loans, but only 15 percent of participants who were eligible for loans had loans outstanding against their 401(k) plan accounts. For those participants with loans, outstanding amounts were 9 percent of participants’ remaining account balance, on average, at year-end 2023.
401(k) plan account balances tend to increase with participant age and tenure. Controlling for participant age, average account balances increase with the amount of tenure a worker has at their job and, controlling for tenure, average account balances generally increase with participant age. For example, at year-end 2023, participants in their forties with two years or less of tenure had an average 401(k) plan account balance of about $24,000, compared with an average 401(k) plan account balance of nearly $400,000 among participants in their fifties with more than 30 years of tenure.

Figure A4 Figure 4 Figure 10 Figure 3 Age Composition of Selected 401(k) Plan Account Balance Categories 401(k) Plan Account Balances Increase With Participant Age and Tenure Few 401(k) Participants Had Outstandin Fg ig u 4re 01 A (k 1) 0Loans, and Loans Tended to Be Small Distribution of 401(k) Plan Account Balances by Size of Account Balance Percentage of participants with account balances in specified ranges, 2023 Average 401(k) plan account balance by participant age and tenure, 2023 401(k) Plans' Loan Offering and Participant Use by Plan Size Percentage of eligible 401(k) participants with outstanding 401(k) Figure 5, 401(k) Plan Assets Are Concentrated in Equities ........................................................................................ 7 A Com Targ Many ppe et par 4 date ndix 01(k) ison of fu plan :nd EBRI/ICI s D partici acco ata Acr unt pan P for the t e oss Year s r40 w cen ere t1(k) a gro g e rec o wing i s fentl pDatabase ary hi tim cip portance a re nd ts . w Pa ith rtici a of cco pan ba ulance nts t b ’ a m la d fu ed nce ian nd s i ten ns since spe ur cie fi 200 eat d the ra7 n. g ie r curre Ts, hese 2023 nt e fundm s are ployer increas in the in 20 gly 23 Peter Brady is senior economic adviser at the Investment Company Institute (ICI). Steven Bass is assistant director 401(k) Plan Asset Allocation, Account Balances, and Loan loans Figure A11 database offered in 40 was 1 (sk) ix p years lans an . At y d iear ncreas -end 2023, ingly us ed nearly by 40 hal 1(fk o ) f t plhe partici an particip pan ants ts h . In 202 ad five3, yea target date rs of tenure fun or ds w less ere ava , includ ila in bl g ejus in t of retirement research at ICI. Craig Copeland is the direcY tor ea of rs o w fealt Tenh ur beenefits research at the Employee Benefit Percentage of 401(k) Plans Offering Loans by Plan Size, 2023 Figure 9 Annual dL ata oa f n ra om s a the perce EBRI/ ntage I CI 4 of th0 e1 r( ek) data mainingbase 401(k) ge p nla erally n acco should not unt balance be used to estimate time trends. Although the References Joint Comm Notes ittee on Taxation. 2006. Technical Explanation of H.R. 4, the “Pension Protection Act of 2006” as Figure 6, Target Date Funds Continue to Gain Market Share ..................................................................................... 8 Age G Activity i rou p n 2023 Figure A3 401(k) Loan Balances 8 Sources of Data and Information Reported Age Group 0 to 2 >2 to 5 Fig>u 5re to 7 10 >10 to 20 >20 to 30 >30 89 over peone rcent -q uar of t ter w he 401(k) ith two pla years ns cov oferin tenur g 89 e or less percent (F o ig f pa ure rticipants, 2). Less tha up f n rom 30 pe 67rce percen nt of tp and articip 70ants perce had nt t , resp enurectivel e of mo y, re in 10% Research Ex In pso tis tute ure ( EBRI) to Eq.u Tihanks ties In to A creda asm Ben ed Am simho ong n, 4 EBRI Dat 01(k) Para tiCom cipapl nianc ts B e ean twd IT een D 2irector 007 an , an d 2 d 0Kyle 23 Bedu, EBRI/ICI Morningstar project has coll 2023). Based on ICI mutu ected data from 1 al fu 996 n throu d datagh 2 , 60F perc 02 igu 3,re ent the 8 of asse recordkee ts in pe non rs– target da providing th te balan e data ced funds were may change from Passed by the House on July 28, 2006, and as Considered by the Senate on August 3, 2006. JCX-38- 60s 15% Brady, Peter, and Michael Bogdan. 2010. “A Look at Private-Sector Retirement Plan Income After ERISA.” ASn vera ag pes a hno dt m o ef diY an e a lora-En n bad la n 4ce 01 s (k fo) r 4 Pl 01 a(n k) A pa crc tici op uan nt ts B wa itlha 4 n 0c 1e (k) s 17.5% 20s $7,600 $15,885 $25,734 1 Asset Allocation in 401(k) Accounts Varies by Age, With Younger Participants Holding More Equity Fi By gure 7, Peter Br Asset Allocation ady, ICI; i St n 40 even 1(k) Accoun Bass, ICI; and Cr ts Varies by Age aig , W C ith op You ela nnd ger , EBRI Participan ts Holding More than 2007 10 (F y igur ears e 6 . ) . In 2023, 71 percent of participants held target date funds and target date funds were 42 percent of EBRI Research P As ersce ociate, ntage f oo f r d 401 ata (k) tabulati par21% ticipaons nts . by Thi agsF e Is io gfsu p ure a e r tBri iA ci2 pef an was t, yewr ar-itten end 2with 007 a ass nd ye ista ance r23% -endfrom 2023 the Institute’s 50s Several recordkeeping organizations provided records on active participants in 401(k) plans at year-end 2023. These year to ye ass 1 umed ar. to F Yurther, o be un invested geemplo r an in equ dyer p Low iti lans may ees. r-T enu change red Pa the rticiirp recor ants dke Mo ep reer L fro ik 1 em year to ly to Hol y dear, mea T 2 arget nin Dag tet he data Funds provided by 06 (August 3). Washington, DC: US Joint loaC ns, om 1mitt 998–ee 202 on 3 Taxation. Available at Figure A7 For data Inves on 401(k) pl tment Co an mpany I assets, parti nstitut cipan e Rese ts, an arch d plans Pers t pe hrough ctive 16 2023 , no. 2 ( , see US De Novem partmen ber). Availa t of La blbor, e at Emplo yee April 9, 2026 • No. 655 30s 14 50 ,5 13 (2 k) plan pa 2r8 t,ici 81 p9 ant accou 4n 9t, 3 b4 a6 lances, $ se 81 le ,4 ct 5e 1d years 89% 89% 88% 1 Equity ................................................................................................................................................... 9 40s 1 86% 2 86% 3 401(k) plan assets, up from 15% 26 percent and 8 percent respe 2 ctively, in 2007. 85% EBRI/ICI 401(k) Database 84% Represents a Wide Cross Section of the 401(k) Universe recor res dke earch a Pep erc ers en i tnd a nclu ge ed o de itorial f A mutu cco staffs ual n19% t fu Ba . nd com lAny vie ance In pa v ws e e nies, b P se te rx ce dpress in n a t a nks E gq e ed u , i o i i tfn i n e as s cco t urance his u rep nt bacom ort lan are ce ps, anies, an tho 202 s3 e of d tco he ns aulting f uthor and sho irms. uld not be ascribed Percentage of participants holding target date funds by participant age group or years of tenure, 2023 any given recordkeeper may not include a consistent set of employer plans from year to year. D ww isw.jc tribt.gov ution /publi of 4catio 01(kns/2 ) Pl0 a06 ns/jcx , Pa -38 rti-c 06/ ipa . nts, and Assets by Investment Options, 2023 Benefits S 11 40s ecurity Administratio 80% 2 n 32025a ,973 and 2025b 43,610 . For tot7 al retirement ass 6,388 135,ets (i 573 ncluding those in 401 $201,515 (k) plans) www.ici.org/system/files/attachments/per16-02.pdf. 18% The share of 4 18% 01(k) plan assets in company stock h18% as fallen by 75 percent since 1999, when company stock 30s >80 percent Average 77% 401Y (k) ea p rlan chaA ra vct er ea rig st ei cs Lob ay n n O um utb se ta r n od f ip na g rticip M ae ntd s: ia E n B LR oIa /In C O I 4 u0 ts 1t (a k) n d da in ta gbase to the officers, trustees, or other sponsors of EBRI, Employee Benefit Research Institute-Education and Research 50s 32,134 57,428 97,559 170,638 281,817 $398,185 Figure 8, through th Youne ge thi r a rd nd Lo quarter of wer-Te 2nure 025, see Inv d Participan estment Company Institute ts More Likely to Hold T 2026 arget Dat . For a disc e Fuuss nds ion ................................ of trends between ....... 10 20s >60 to 80 percent Fig 24% ure A9 79% 3,4 accounted for 19 percent of assets (see Holden and VanDerhei 2001). Some of this movement away from company 16% 78% 16% Introduction 67% 1998 vs. DOL F $o 6r ,7 m 1 7 5500 for all 401(k) plans, $ 23 0,29 302 401(k) Plan Asset Allocation, Account Balances, and Loan Data provided for each Bal p anarti ced cipan Fund t i sncluded date of birth, date of hirG e, IC outs s a tanding l nd oan balance, funds in the In particular, annual changes in average or median account values may not reflect the experience of the typical 401(k) Joint Comm 60sittee on75% Taxation. 37 2,01 039. 3 General Ex 63,448 planatio 1n 00of ,8 Ce 73 rtai75% n T 16 ax 3,0Le 55gislation 24 9Enact ,813 ed in3 the 95,4 1 11 45th Fund (EBRI-ERF), or their staffs. Neither EBRI nor EBRI-ERF lobbies or takes p 15% ositions on specific policy proposals. Brady, Inves> tm 40 to 60 perce Peter, ent O pand tion M s nt O ichae fferel dB b ogd y Pan. lan 2016. “A Look at PriP vat lan es -Sector Ret Pa irement rticipan P tslan Income 15% After As sERISA ets 15% , 63% 13.0% 13.0% $87,040 defined benefit (DB) and defined contribution (DC) plans, see Poterba, Venti, and Wise 2007; Holden, Brady, and Asset Allocation Distribution of 401(k) Participant Account Balance to Balanced Funds by Tenure 72% $85,500 stock may be the result of re71% gulations put in place by the Pension Protection Act of 2006 (PPA), which limited the 1999 6,815 4,400 Age Equity Target Date Non-Target Date Bond Money Other Stable Company Memo: 20% 14% Over the Fi partici gure 9, pan p Ex t’s as po in t four deca s ves ure tm to E 14% ent qu de port itie s, folios 40 s In 1(creas k) , plans h and ed asA smo et valu ave bec ng 401(k es att ome )ri tParticipa bu he te mo d s to t t nts wides hos Betwee eprea funds. d private n 20 For 07e and a -ch p secto 2023 art r emplo icip ................................ antyer , an -s a ponsor ccount ed balance ... 11 >20 to 40 percent plan participant. In addition to changes in the employer plans included in the database, the participants in any given Activity i EBRI invit Congress es cn om2023 ment on . JCS-2- th 19 is resear (Octobe 67% ch. r 3 1). Washington, DC: US Joint Comm 1 ittee on Taxation. Available at 13% 2015.” ICI Research Perspective 266% 2, no. 8 (December). Available at $81,140 Hadley 2006; Brady and Bogdan 2010 and 2016; and Brady, Burham, and Holden 2012 65% . Percentage of participants, 2023 2,3 2000 6,856 3,824 3 5 length of time participants could be required to hold company stock contributed to their accounts by their employer; >0 to 20 percen Note: The av terage account bala 1 nce among all 10.6 million 401(k) participants was $78,112; the median account Figure A8 $78,267 $78,112 Group Funds Funds Balanced Funds Funds Funds Value Funds Stock 36% Other Unknown Equities Equity, bond, money, and/or balanced funds Fig7 u 12% 3re ,7 72 3 2,473,621 $167,511,239,337 is calculat retirement pla ed an s the in the sum Unite of td he partici States. pan In 2 t’02 s ass 3, an est ets in im all ated funds 68 exc millio ludin n g Am any erica outst n w an ork diers ng loa wer n e ba ala ctiv nce e 4 . 01(k) Plan bala plan nces plan change from year to year as new employees are hi $76red ,293and other employees leave or retire. Only participants’ 44% www.jct.gov/publications/2019/jcs-2-19/. $75,358 Plan ww As w.ici.org sets /system/files/attachments/per22-08.pdf. 2001 6,644 3,659 Figure 10,Ze Fro e ba w lan 401(k) ce was $ Parti 15,44 cipan 8. Acco ts Ha unt b d ala Outs nces tanding are particip 401(k ant a)cco Loans unt b, a alanc nd esLo he ans ld in Tend 40 $1(k 73,ed ) p 67lan to 2 s a Bt th e Smal e partlicip ............................ ants’ 12 1 $73,357 57% 2 specified rules regarding the notification of blackout periods; and required quarterly statements that must include a 20s By Peter Br 23.3 ady 69, IC .8 I; Steven 1.2 Bass, ICI; and Cr $7 12 .9 ,383 aig 0.1 Copeland 1.6 , EBRI 1.1 0.310% 0.5 90.0 Ass2 et Allocation Di4 s0 tr1 ib (k u) tiPa onrP ti o ec f rc i4 p e0 a n1 tn (k ats g) e Pa R ofe rA p ti c rc c e io s pu e a n n n t t t BA a a lc R ac na o cn e ug n In e t v B e os a f tle J a d o n b ic ne T B to e aln a B n uc a re e la d sn Fc ue nd d s Funds by Age 3 Sug Of w Before 2005, DOL private ges hite chd : ta Crit ge at t d io ate n: fu Brad nds pe y, Peter a nsion plan bu re an o,p Stev tion en lletins reported a count of active 401 Bass, and Craig Copeland, “401((k) k) P plan lan partici Asset All panocat ts tha ion, Account t had been 67,719 2,204,952 142,377,887,891 are const participanruct ts. eA d t year as th-e end sum 2 0of 23all , 401(k particip ) plaant b n as aslances ets wein the re $7.9 pl trillio an. Pn, lanre spresenti ize is est ng on imated e-fias fth the of sum all re of tirement active $7 ass 0,32ets 0 . account balan Perce ces nta at ge th ofeir plac nu a rrent ssetsemployer are included in the data. Retirement assets held in a previous employer’s 9.7% current employers and are net of plan loans. Retirem 2002 6,659 ent savings held in plans at previous em 3,700 ployers or rolled over 1 9% 30s 29.7 60.5 1.4 2.7 26% 0.2 2.1 2.4 0.5 0.5 88.7 notice highlighting the impo Pe rtan rcen ce o tage f dive of act rsific ive 4 atio 01(n (see Joi k) plan parnt Commi ticipants bttee y yea on rs Ta of xatio tenurn 2 e, 20 006). 23 Percentage of participants, 2023 Equity, bond, money, and/or balanced funds; 48% adjusted from the n $65,4 umbe 54 r of active participants actually reported in the Form 5500 filings to exclude (1) individuals Balances, and Loan Activity in 2023,” EBRI Issue BrF ief ig , no ure. 6 655, and 8% ICI Research 8% Perspective, vol. 32, no. 2 (April Morningstar into I. RA 202 s a3 re . Mornin not include gs d. tar Lifetim The tenure e vaAl riab locat le is g ion enIn era de lly x ye es. ars Ch woica rkin go: M g at curr orning ent em splo tar, ye I r a nc. 12.9% nd th us may Fi partici gure 1 pan 1, ts 4 in 01(k) the Loan plan.Act ivi 2003 ty Varied Acr $63o,s 9s 2 4 9 01(k) 6,83 P 9 lan Participants ................................ 3,832 ..................................... 12 plan Brady, or roll 100 ed Peter, over i Kimberly nto indi B vid ur ual ham, and retireme Sara nt accounts h Holden. (I20 RAs 12 ) are . The Su not includ ccess ed of i the n the U.S. anRe alys tirement is. System 17.7% 2 40s Years of Ten 3u 6. r6 e Zero46.9>0 to 10 >11 0. 7 to 20 >20 to 4 3.0 1 >30 to 40 0.4 >40 to 50 3.> 750 to 60 > 46 .9 0 to 70 >70 0. 8 to 80 >800 t.o 7 90 >90 8t2 o. 9 100 4 8.1% $60,329 and GICs and/or o28% ther stable value funds 51,578 5,955,801 457,753,485,713 overstate years of participation in the 401(k) plan. In an eli 12 ong giblo e to parti ing collab cipate orative in a 40 effort 1(k) , the plan who ha Employee d not elect Benefit R ed to hav esearch e the Institute ir emplo (EBRI yers ) mak and t e co he ntributio Investm ns; ent an Com d (2) pan y 2026). 2004 Target 7D .6a % te Fun 6,d 9s 46 Continue to Gain Ma 3r,k 8e 93 t Share Key Fin Plan dings -specific : information on loan provisions is available for the majority of the plans in the sample (including (December). Washington, DC: Investment Company Institute. Availabl 30.1% e at 50s 0 to 2 40.5 17.8% 37.0 3.3% 12 0..0 9%Percent 0a .g 8% e 5 o.f6 Acco0 u.n 5t% B0 a.la 7nce 0 .In 6v % este 6 d .4 in 0 .B 6a % lanced5 F .0 7 u .n 6% ds 1 0..1 5% 00 .5 .9 % 74 7.2 0.% 8 > 30 years $55,502 35.1% 80 Figure A1, EB So RI/ICI 5urce: T 4 ab 0ula 1(k tio ) ns Plan Databas from EBRI/ICI P e ................................ articipant-Directed Retiremen ................................ t Plan Data Collection Proje ................................ ct 11.2% ............. 14 Of which: target date funds are an option 44,245 5,201,104 407,486,455,782 Poterba, James, Steven2005 F. Venti, and David A. 6,8W 21ise. 2007. “Rise of 401(k 3) ,6 P 6l1ans, Lifet Foime Ear rm 5500nings, and Wealth Records Institute nonvwer ested f (ICIe encry ) collect a ormer emplo pted be nnufal yee ore in data s who had n clusion on mill Piio e n < ot rns of 40 1 ce the (at the time the 0n 0t d agat e abas o 1( f k to)t e a 8622 pl to co lan partici 40 Fo 1(k) nceal 0 rm 5500 . 1 m 9a 1rpan t 5 ke 3 he t,t fili s ye 1 i de 9 and ngs a .1 rnt -5 e an 3 ity of n were subm 2 d alyz employers e how itted) i these a ncurre nd par em ticipants ma d the ployees break but w -in nage ere To analyze the experience of individual p >a 2rticipants ov 0 to43.7% 30 years er time, other research analyzes a sample o43.5% f participants that are virtually all of the sma 6.2% ll plans). Some plans without this information are classified as having a loan provision if any A 60s > g 2 e to 5 37.2 19.6% 35.8 4.0% 2 1..5 2% 1.1%7.0 0.7%3% 1.1 0.9% 9.8 0.8% 4.0 6.7% 1 0..0 7% 01 .7 .0 % 69 6.1 6.% 4 www.ici.org/system/files/attachments/ppr_12_success_retirement.pdf. 48.5% Equity, bond, money, and/or balanced funds; 2006 7,292 15 4,089 6 total 100-500 6971 0.15486 15.4856 • C opyright I 401(k) p nla for ns ma dra tio 54.9% w ma n: This re ny yo port is c ung and 8% opyright newed ly b hir y e the d w Em orker ployee 20 s into Bene saving fit Res f ear or ch In retis re titut ment e (EBRI) . At y. You ear-e may nd service perio at Retir d estab ement. lishe” NBER d by their plan; tha Working Pap t adjus er, ntme o. 13 nt w 091 ( as n May o longer possi ). Cambridble beginning in 20 ge, MA: National Bu 05 (se reau e US of Economic Group coded their 40 Z so that e1( rok) pla both > n 0acco toco 10 uld be unts. >1 Thi 0 trac ts o re ked by r 20port >2is 0esear an to 3u 0pd chers at >3 e 0 ov of to er EBRI an 40multiple years >40 d tIC o 5I’s 0 ong .>5 oi 0 For ng res to a majo 60 earch thro >6rit 0 y of to 70th ug e > hr7 ecor year 0 to dkee 8 -en 0 d pe > 2023 8rs 0 in th to. 9 0 e >90 to 100 A >l5 l to 10 consist 37ently i .0 60 5.2 2 n 2 % the .2% 41 EBRI .7 4./ICI data over 7% 2 1..4 7% a number 1.5%5 5.o .3 2f % conse 1.1% cutive yea 0.7 1.2rs %. 6.4 1.0% 4.0 7.9% 27% 0 1..9 0% 57.7% 10 .1 .9 % 63 7.4 8.% 6 participant in the plan $ h4 as an 5,519outstanding loan balance. This may understate the number of plans offering loans (or Figure A2, EBRI/ICI 401(k) Database Represents a Wide Cross Section of the 401(k) Universe ................................. 15 (percent of plan assets) 2007 2013 2018 2023 and company stock 126 987,325 58,048,449,275 2007 7,495 4,1 06 t7 o 2 years 401(k) Partici 100 pants plan a sse Allto s cate a Large Sh 501-1000 3481 are of 0.07 Ass 733 et 7.s 7 3to 281 Equities 20s copy, pr 17.4% int, or 2. d 8% ownload 0.this 8% report0 solely .7% for p0ers .5% onal and 0.no 6%ncommer 0.6 cial % use, p0rov .5% ided that 0. al 5% l hard co 0pi .5es r % etain 75.0% 1 Departmen 2023Researc , t o 41f pe Larc h. bor, ent Availab Emplo of 401 le yee at (k) Benef w pl ww. an p its Sec nb artic er.or urity Administratio ipa g/pap nts w eer rse /w in 130 their 9 n 2 1.t 012 f wenti or furthe es or thi r detail) rties, and . This cha 23 percent nge in w methodo ere in the logy ir >10 1 tto o 2 20 10 023 EB 11RI/ICI to 2$ 2 53 79 . 8 401(k ,8 % 8 25 6 to ) 5 6 data 0 .1%b5 as 1 e, i to 2 1t is .0 80 %also 101 poss to 2 .2 4 5% ib 0 le 25 to 1 l to i1 n 5 .k in 8 0% 0 di 50v 1id to ua 1 1.ls a ,6 0% 00cro 1s ,0 s p 0 11 .lans 4 t% o wi 2th d ,50 11 .2 i ff t% oerent 5 ,re 01 0cor .1 3 % todkee >pe 10 1rs ,.0 5. 0 % 0 This All 5 P2 la .1 n% s Dold, Elizabeth Thomas. 20 118. “Qualified Plan Change 28% s Within the Bipartisan Budget Act.” Journal of Pension participants eligible for loans) because some plans may have offered a plan loan, but no participant had taken out a Percentages are dollar-weighted averages. 3.9% 26% Of which: target date fu 2008 nds are an option 7,191 3,8818.1% 9 $37,323 40 100 Plan Assets-- 1001-5000 9054 910.20113 20.19 12 21 8,287 47,847,931,405 89% 89% 10 30s 20.1% 3.8% 1.3% 1.1% 0.8% 81.3% 0.9% 0.8% 0.8% 0.8% 0.8% 68.9% Equit This project ies—inc ilu s u sive of nique becau equity sfun e it inclu ds, the de esq data uity portion provided of by bala anc wied de f var unds iety of , 2 ,and 50pl 0 a com n rec pa 5ordkee ,0 ny sto 00 pe ckrs — 10 and th ,we 000re he erefor ld by e 97 >20 to 3 Fi 0gure A3, S3 na 4.pshot of 5% 9 Ye .2% ar-End 401 4.8%(k) Plan 3.6Acc % ount B 2.a 6lances % ................................ 2.3% 2.0% ................................ 1.9% 2.5% 4 .............. .0% 16 32 .8% any an results i forties d n a al dra l . co Ne pyrig matic i arly ht half ncrea and ot of 401 se in the her (k)a p pp nu lalicab n partici mber le not of indi pa ices c nts vidua hontai ad ls repo fiv ned ther e yrted as ears 3.0% of ein, a active partici 51.0% tenur nd you e or may c less pants ati the te or in 401(k) pl ir curre quotent e small p ans; in 2004, mplo ort yer ions , of improves the identification of active p 88.4% articipants and resulted in the reclassification of about 300,000 participant 2 loan. It is li Bene kely fits tha 2t this o 5, no. 4 (Su mission is small mmer): 6, as US Gene 7 N – u6 m 9. beAv r oail f Pabl a ral Acco rtie ci at panww ts un in ting Office 1997 f w.g Plaroo n m.com/wp ound t - hat more than 95 percent of 90.5% 2009 7,346 3,972 Equity, bond, m100 one27% y P,a a rtn ici dp /o arn tb s- a-lanced fu >n 50 d0 s0 ; 16888 0.37516 37.5156 2.5% 40s A target date fu 23 nd .2 ty %pically re 5 ba .3lan % ces its p2 ort .0fol %io to beco 1m .7e l %ess focus 1ed .2% on growth 1 23.8% an .2d m % ore focu 1se .1d o % n incom1 e a .0s it % approac 1he .0s a % nd passe 1.s t 3% he target d 6ate 1.0 of % >30 1996 41.4% 200011.4% 2005 6.1% 42010 .6% 3.32015 % 2.9% 2020 2.5% 2021 2.1% 2 2022 .0% 1.72023 % 22.1% US Department of Labor, Bureau of Labor Statistics. 2025. National Compensation 2.0 Su % rvey: Employee Benefits pe represe rcentnts of pla then activity particip of ants par and ticipants represent in 40 ed 1( k 75 ) plans o percent f vof ary 4ing 01(k) sizes pla— n p from artic very lar ipants’ ge as corporatio sets at year ns t -eno sm d 2023 all (Figure 5). the n the re umbe port 20 r of provided that active partici you 2 pan dts increased o so verbatitm and w o 53.1 mil ith pr lion (oper new method) fro citation. Any use F m 44.4 igure be mil Ayo 6lio nd n (o the ld method; scope of see US the foregoing including just over one-quarter who had two years of tenure or less. 1.7% accounts that were multiple2010 accounts owned by s 6in ,8gl 46e individuals. This proce3 du ,61 re 9 allows EBRI and ICI to begin to 401(k) plan content/ s that offer 100 upP loa arlo tds/2 ici an 79% pa s h 02 nts- ad a 2-/11/Q t least o ualifine ed plan pa -Plan-Crtic hanges ipant wi -Within th an outstan -the-Bipartisa ding lo n-an Bu . dget-Act.pdf. the fun 50s d, which c 2 is usua o 6m .2% pan lly included y sto6 c.k 2;% a in the fu nd GICnd’s na s 2.8 a % ndm /o e. r 2.2% 78% 1.5% 1.5% 1.3% 1.1% 1.3% 1.5% 1.5% 54.5% Figure A4, Age Composition of Selected 401(k) Plan Account Balance Categories ................................ 13% ..................... 17 >10 to 20 years All 22.9% 4.9% 1.9% 1.6% 1.1% 1.2% 1.0% 0.9% 1.23.0% 0% 1.1% 62.4% 62.6% Survey. Washington, DC: US Department of Labor, Bureau of Labor17.2% Statistics. Available at bu Participa sinesses nts — in wves ith ted 37 a variety o percent f inves of th tmeir enta o cco ptions. T unt balanc he 2 F es in eq 0ig 23 u EB re A RI/IC uity f 1 Iu 4 nd 01 s, on (k) data avera base covers ge, and 5 pe 126,107 rcent i e n m com ploy pan er-y stock. Departmen 19.1%t of Labor, Emplo 2011 yee Benefits Sec 28.4% urity Administratio 7,027 4017% (k) Pla n n 2025b Ass). ets As the A 3,r7e 8 DOL 5 Con notes: “In a p centrated in urel Eq y economi uities c requires EBRI’s100 prior Pla ex ns- pres - s permission. sum73% For permis 45016 sions, please contact EBRI at permisE sB ions@ RI/ICIeb 1% ri.org. 360s 26.9% 6.3% 2.9% 2.4% 1.6% 1.6% 1.4% 1.2% 1.3% 1.5% 52.9% consolid othe ate r s ac tabcount le valubal e fu anc n 71% ds es for individuals across data providers 631 to provid 71% 1e ,1a 9 more 9,653 accurate es 14tim 5,9ate of 50,386 avera ,749 ge Percentage of Eligible 401(k) Participants with 18% 401(k) Loans by Plan Size, 2023 0 70% Not all particip 13ants are offered this investment option (see Figure A7). For an analysis of 401(k) participant loan activity over time, see Holden, Bass, and Copeland 2023. The 1 lower 2 • More 40 20s 1(k) p 67% 30s lan 2012 part 140s icipants 50s held 60s e 7,1 qu 53ities in 20 0 to 23 2 than >2 to in 5 > 2 35 ,00 8 to 5 8 7, befor 10 >10 toe the >20 o tonset o >30f the Global All 22.9% www.b 4.9100 % ls.gov Pla/n eb s- 19.9% 1-s .9 /pu % blicatio 1ns/annu .6% EBRI/al IC -be 1 I. 1 4n % 0 efi 1(k ts) -sPl ummar 1 a .n 2% Dy a.htm taba.1 s .0 e% 0.9% 1.0% 1.1% 62.4% Participa s ponsor sense a ed nts 401(k nd in for resea ves )ted plans, anothe rch pu with r rpos 44 10.6 16 p es, i ercent mill ndividua ion o partici f the ls iir n th pan acco ese groups tsunt , holdi bala ng should not be nces i $829 n b billion alance in incl d as f uded un sets ds in the ., w Thhi isch inv repr coun esen t o est f a in a tscti 1ve 7mi pe x rc oent f equ of ities Figure HoA ld5, en, Te Sarah nure Co , Steven mpos B ition assof , an Se dl Crai ecte Pe d g rc 4 Co e 01(k) n 4 pe t0 a 1 g lan (e k) P o d. 20 la p fl a n A A n c a c 23 cco v oe u . rn a unt “How tg B e a a Ba lsse a401(k n lan cte a ce Cate Iln lo) v ca e Ps tlan ito en gories d ,Part p in e rT ce icip a ................................ r ng ta a eg nt t e D s o a Use Loans ft e to F ta uln a d sse s t o s,ver Ti se ................. lect m ee: d years 17 Of which: target date funds are an option 578 1,158,321 141,603,287,433 So acco urce: unt balan Tabulations ces fro m pe 1 E 0r 0 BR i o nrIdi /IfCI e vi w P d eual. art r icipan t-Direc 101 ted to Re 50 tire 0 ment Plan5 Da 01ta toCo 1,llec 000 tion Project 1,001 to 5,000 >5,000 4 17.6% 20.7% Less Than $10,000 >$40,000 to $50,000 More Than $100,000 GICs are guaranteed investment contracts. 9.7% 20 30 share of eligible participants wit 2013 h an outstanding lo 7,421 an since 2019 may be related to pro 3,973 visions in Bipartisan Budget 7.0% <$1,000 $1,000 to Repo F $5,000 to < ina rt A ncial vaila $7,000 to C bil riit sis. y: Thi At year $10,000 to s rep -ort end > i $2 s2023, availa 0,000 97 > bl $30,000 e p on ercent the > $40,000 of inte parti rnet at cipan >$50,000 wts ww.e hel >$60,000 d bri.org some > portio $70,00 n 0o> f $80,000 their 11.2% ass >ets $90,000 in equ >$100,000 ities— >$200,000 40 and 1 (partici fixed k) plans, -inco pan ts. 16 me securiti ” H peow rcent eve r, t es of ac . he f tive pa orm schedu rticipants le ne , and 10 eded to make percent the a of djustmen assets. See t is no l the ap onger requ pendix fired. or a Usi more det ng histo aile ricd al An Analysis of Loan Activity of Consistent 401(k) Plan Participants, 2016–2020.” ICI Research Number of Plan Participants 2 3.8% 9.1% 56% 5 <$5,000 $7,000 <$10,000 A 2014 g $20,000 e Group to $30,000 to $40 7,7,000 80 to $50,000 to $60,000 to $70 4,2 ,000 39 to $80,000 to $90,000 to to Figure A6, 401(k) Plan Assets Are Concentrated in Equities ..................................................................................... 18 4 Act o US De 01(kf 2 ) partmen P018. Prio lan Chat of ra r to cte La 2019 ris bor, Em tics , pl by a ns th pl Nu oy m Pee b at a ee rc B r eo lle now ftnef a Pg ed lo la e its n o Se P f an a Ar ccurity ts c ic o ha iu pn a d to tn Adm B ts a,lr a 2 equire n 0 ini c 2e 3 s trat In v empl eion. sted oyees 2 in 01 T2. ato r gPrivate etak t De out a lo ate P Fu ension P ndsan bef lan ore requesting a Bulletin, n 7.9% Figure 11 7.1% Y Eq ea uit rs ies o in f T clu ede n Au ll eq reuit 2.4% y fZ un er ds o, com > pa 0 ny to st 1oc 0 k, >an 10d t to he 2 eq 0 uit >y p 20ort toion 30 of ba >3 lan 0 ce tod f 1 42 0 un 6,ds 1 >0 4 .7 0 to 50 >5 10 0 ,t 6o 1 6 6,0 401 >60 to 70 > 87 20 9 ,t2 o 6 3 8,0 561 >,8 00 7 4 to 90 >90 to 100 through equity funds, the equity portion Si o ze f b oalance f Accod fun unt 6.3% Bds, and com alance pany stock. This compares with 87 percent relationships and trends evident in the Form 5500 data, ICI estimates the n 23.4% umbe Yearr of ac s of Ttive 401(k) partic enure 5.3% ipants to be description of the 2023 data. Investment Pers Opti pectiv ons e 29, no. 7 and EBRI Issue Brief, no. 590 (September). Available at $100,000 $200,000 2015 4.7% 7,982 4,359 Age 1 Num Pa berrti o cfip P ala nn ts 3.9% Average Account 5.0% 3.8% 0 to 2 in-servic2 e ha 1.9% rdship di 0.7 stributi % on. B 0.6% eginning in 0.7% 2019, thes 0.5% e plans had the op 0.6% tio 0.6 n to eli % minate tha 0.5% t require 0.5% ment. See 0.5% 73.0% Note: Funds include mutual f Abst unds, bank col ract of 24 00 05 1 lecti (k Form ve trus ) Lo5500 a ts, l n A ife i Ann cnsurance separat tivua ity l R Va epror ie 9.6 ts d ( e accounts, % A Vc ers roion 1.1 ss and any pooled i 401 ). (k W ) as Pl hin angton nvestm Par , DC: tient product cipUS an Depa ts prim rtm arily invest ent of 15.5% Lab ed in t or, he security The share Of w ohf ic4 h01 : ta (rkg)e pl t d an ate as fus nets ds i a nves re an te od ptin ionequities is higher 112,no 63w 3 than it w9as ,4 8be 5,6 for 65e the Global F 739ina ,31ncial 5,562C ,5r1 isis 1 , and the of participants at year-end 2007. 3.4% about 68 1 million in 2023. 2.5% There were about 725,000 401(k) plans in 45% 1.9% 2023 (see US Department of Labor, Employee Fi gure A7, Distr wwib w.ici.org ution of/f 40 iles/20 1(k) P 23/p lans, er2 P9 a-rticipants, 07.pdf and and As www.e sets bri.org by Inv /content/ estment O howptio -401 ns, k- 2 pl0 an 4.8% 23 -pa ................................ rticipants-use-loans-.. 19 1997 0.5% 1998 2016 2000 2001 7,9 1.1% 07 2007 2010 4,272013 9 2016 2019 1.3% 2020 2021 2022 2023 Group Zero Pe 19.2% rc Te he analysis includ n> ta 0g te o o 1f0 part> ic 1 es the 10. i0 p a to n t2 s0 6 m >illion participants in t 20 to 30 >30 to he year-end 2 40 >40 to 023 EBRI 50 >5/I 0CI to 401(k) datab 60 >60 tase. o 70 >70 to 80 >80 to 90 >90 to 100 Participants Total Plans Total Participants To 17.7% tal Assets Balance Note: Account balances are participant account balances held 5.8% in 401(k) plans at the participants’ current employers and are net of p 42%lan loans. Retirement savings ind >2ica toted 5Inves . tment o 24 p.tions 5% are 1 g .1rou % ped i 0nto .8% eight 1 broad .0% categori 0 4.1 .7% % es. 0.8% 0.7% 0.6% 0.7% 0.7% 68.4% 4.1% 2.4% Internal Revenue Service 2025 0.6% , Dold 2018, and Joint Committee on Taxation 2019. 2.9% 13.2% Employee Benefits Security Administra Size tion of ( AMarc ccouh) n12.2% t. Avail Balanabl ce e at way part T The report able of C ici i pan s di ontents ts vid inves ed into t in e foq 10.9% ur uit sies ections Loa has n a cha ct : t ivh ite ng y first be 10.8% y d. p aIn exam rti 200 cipain n7 tes the , aeq geuities , t compos enure wer , ore ition ahe cco ld by of un 401 t si87 ze(, k) p 2ercent p 02la 3n partici of plan pa nts partici by a pan ge 1.7% ts and and 1996Benefits S 1999 2 2002 ecurity Administratio 2.0% 2007 2008 n 2 2010 025a 2.5%2012 ). 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 20s 21.0% 0.7% 2017 0.5% 0.6% 7,90 3.5 5% 0.6% 0.64 % ,293 0.5% 0.5% 0.5% 74.1% held in plans at previous 100 employers or rolled over into IRAs are not included. 1 to ov 1 0.6% er 0 -time-an-analys 0.6% is-5 of 8- ,loa 819n-activity-of-cons3 ist 10 ent ,08-2 401k-plan-partici $33,4 p9 ants 3,87-5 2016 ,1 5.5% 49-2020. $108,016 A target date fund typically rebalances its portfo1.1% lio to become less focused on growth an 3.7% d more focused on income as it So >5urc toe: 10 Tabulations fro2 m 7 E .9 BR %I/ICI P1 art .7icip % ant-Direc 1.2ted % Retire1 m.en 2% t Plan Da1 ta 2.8 .0 Co % %llection P 1.roje 1%ct 1.0% 0.9% 0.9% 1 3.1% .0% 62.3% 2.4% 2.1% Figure • A8, Compar Asset All ed ocat wit io h 401 n Dist(k) pl ribution an part of 401( icipa k) Partici nts in pa 200 nt Account 7, par B ticipants alance toin 20 Balanc 23 ed obt Fua nined ds by a higher share of www.dol.gov/sites/dolgov/files/ebsa/researchers/statistics/retirement-bulletins/private-pension-plan- 30s leng accot 14 unte 2 h 4of .7% d ten for u re; the 68 1pe .2% rc secon ent of 401 d 2018 0 prese .9%(k)nts plan p a 0s .9 narticipants’ % apshot 8 of ,10 6 p .2 8 as % art Pseets icipan rce . n tAlthou a t 0 account g .8 e % ofg h hi b Pgh e ala 0r .8 c er 4 % nces at e, n 4 st8 hare a6 ge o y s f0 of ear .7% as -esnd ets2023 w0 e.re i 7;% the nvest thir ed d 0 .8 ilook n e % qu s at ity 67.8% Source: T Introductio abulations from n ................................ EBRI/ICI Participant-Directed Retir ................................ ement Plan Data Collecti ................................ on Project .......................................................... 4 1 2007 1approaches and pass to 25 2023 2007 es the target date 33 2023 ,069 of the fund, whic 2007 2023 h is usuall 542,49 2007 7y included i 2023 n the fund’s nam 44,1 2007 61,729 e. Funds incl ,32023 29 ude m 2007utual 81,4 2023 05 US Department of Labor data indicate that loan amounts tend to be a negligible portion of total plan assets. In >10 to 20 3 34.6% 3.0% 2.0% 1.9% 1.5% 1.4% 1.3% 1.1% 1.2% 1.4% 50.5% Media •n Equity funds consist of pooled investments primarily invested in stocks, including equity mutual funds, bank See Investment Company Institute 2026. 27% 40s 28.9%Age ................................ 2.1% P 1e .5 r% centag ................................ e o 1.f4 E % ligible 40 11 .0 (% k) Pa................................ rtici1 p.a 1n % ts With 1.0 L% oan................................ as a0 P .9 e% rcentage1 o .0f% the ..................... Rem1 a.i3 n% ing 40 12 (0 k 5 ) 9 .8% Investm funds, bank collective trusts, life insurance separate accounts, and any pooled investm ent Options Offered by Plan Plan 26% s Participa ent product prim nts Pearily invested in rcentage of Assets Note: At year-end 2023, the a thei 80 bu r equity verage accoun lletins-a ex bstr posure thr t balance a act 2019 -2005. mpdf ong all 10.6 oug . h bala million 401(k) participant n 6,c 9ed fun 50 ds, such s was $78,11 as target 3 2; the m ,3date fu 43 edian accou nds, and a low nt balance was $15,448 er share . Account balances partici funds pan and ts 2co 6’ a tmpany sto os s 5 20s et all 0 177ocat .7 ck 0 ion .i1 n 0s2 8 , i 4 00 7 nclu 7 30s 1 com di 1 05 .n 8 ,6 g 4 p 6 7a an 8 3red with alysis of 202 40s 401(k 3, t) ota 5partici 5l 4,e 6xp 30pan osur 50s ts e ’ to use of equ targ ities 40,86 et was low 3,7 date, 1 60s 7,25er or 4 Fo l be rim fecy c ause 55cle, funds; 00 a m All 73uch ,67 and th 7 lower e Holden, Sarah, Steven Bass, and Craig Copeland. 2024. “401(k) Plan Asset Allocation, Account Balances, and >20 to 30 42.8% 6.2% 3.5% 2.8% 2.1% 1.9% 1.7% 1.7% 2.3% 3.8% 31.4% plan year 2023, the latest data available, 1 percent of the $7.9 trillion in 401(k) > plan a 2 to 5 ye sse arts were partici s pant loans. 401(k) Pla collective ns Draw trust Many s, l Yo ife insura unger Work nce s er ep s an arate a d New cc Hir ounts es Into R , and oth etire er p ment Savi ooled inve ng s tm ................................ ents. ..................... 4 are partic 50s ipant account bal 32.6% the security indicated. ances held in 401( 3.1% k) plans at 1.9% the partici O1 u.t8 s % ta pants' ndin current em g 4 10 .31 % (k) L ployers and ar oans 1.3% e net of plan loans 1.1% . Retirem 1.0% Plan ent savings hel Acco 1.u 2n % t Ba d in plans at pr lanc1 e.4% evious 53.3% 4 2020 11 7,560 4,020 51 to 100 8,773 Age 61 Group 2,141 43,777,259,934 71,515 through e 16qu 9.9ity f 0.1un 037 ds an 1 10d co .3711 mpany stock. At year-end 2023, 71 percent of participants held target date >30 The Emplo 51.8yee % Benef 8.0% it Resea4rch In .3% >stitute ( 5 to 1 30 .4 ye % EB aRI) rs is a nonprofit, 2.6% 2 nonpa .4% rtisan, publi 2.1% 23% c po 1li .8 cy % research orga 1.8% niza1 tio .5n th % at 20.3% s fourth hare of focus asses ets on partici was invest pan edt i s’ n 401(k balance ) loan a d fund ctiv s.ity. 17% Loan Activity in 2022.” ICI Research Perspective 30, no. 3, and EBRI Issue Brief, no. 606 (April). See Table D6 in US Department of Labor, Employee Benefits Security Administration 2025a. Fi gure A9, Asset Allocation Distribution of 401(k) Participant Account Balance to Balanced Funds by employers or rolled over into I 3 RAs are not included. 60s •3 3.9Bond % fund 3.3 s% are pool2ed .0% accounts prima 1.8% rily invest 1.3% ed in b 1o .4nd %s. 1.3% 1.0% 1.2% 1.4% 51.4% 60 2021 8,069 Figure A5 4,517 All Equity, b To he tenure va nd, money riable is generally yea , and/or balanced rs working at current e funds 15% 5 m8 ployer and th .5% us may overstate ye 23.3% ars of participation 9% 20. in the 2% US Departmen8 t of 6.2La0bor, Em .05262 pl 5oy .26 ee 18 B 7e 22% nefits Security Administration. 2025a. Private Pension Plan Bulletin, All 401(k) Partic 2ipa 8.6nts % ’ Acc 2ount .0% Balances 1.4% Tend to Rise 1.3% With Par 1.0% ticipa 1nt A .0%ge and Ten 0.9% ure ................................ 0.8% 0.9% .................. 1.1% 6 5 1 .0% does not l fundsobby or t , with thak ose posi e funds tions acc on legi ounting slati for ve p 42 ropo perc sals. ent of assets. This compares with 26 percent of participants and EBRI/ICI Available at www.ici.org/files/2024/per30-03.pdf and www.ebri.org/docs/default- Source: T All abulations from 28.6% EBRI/ICI 2. Participant-D 0% 1.irected Retir 4% em 1.3 ent Plan Data Collecti % 1.0% on Project 1.0% 0.9% 0.8% 0.9% 1.1% 61.0% Tenure ................................ 1 ................................................................................................................ 21 1 401(k) plan. 8% 15 2022 8,068 4,537 • Balance 101 to 25 d fun 0 ds are pooled 5 a,cco 305unts invested in both sto Fig 8u 16 re ,4 8 54cks and bonds. Th 57,530 ey ,0 are 73,5 cl 35assified into t 70 w ,4 o 61 Of which: taT 2 rg 7 e e 1n t d .3 ua rte e 0 . fu C 16 o n5 d m 6 s1p ao r1 e s 6 i a .ti 5 n6 o o 0n p 9t io on f Selected 401(k) Plan Account Balance Categories 24% Th Participants inc e EBRI/ICI 401(k) lude the 10.6 m databas illion 401(k) e enviro plan participants i nment is certified to b n the year-end 2023 EBRI 53.e f 7 ully complian2 /I t wi CI 0. 401(k) database and the 21.8 m 8th the ISO-27002 Informat 17.2 iillion on Abstract of 2023 Form 5500 Annual Reports (Version 1.0). Washington, DC: US Department of Labor, 8 percent of assets in 2007. Also known as lifecycle funds, these funds are designed to offer a diversified (percent of participants) 40 401(k 5 ) Partic Source: T ipa source/p nts All abulations from briefs ocate/eb a Large ri_ib_ EBRI Sh 60 /ICI 6 ar Participant-D _ Pe o k e-rxsec cf eAs nt- a s30 g ets e irected Retir a o to E pr2 f A4.p cqu cod u ities fn em . t ent Plan Data Collecti B ................................ alance Invested ion Project n Non................................ -Target Date Balanced ................ Funds 7 2023 8,653 4,907 251 to 500 2,037 710,969 54,529,201,473 76,697 Age Gro Th u 401(k) plan pe Investme participant 93 nt Company 3.1 s in the year 0.5 P6 e9 r5 ce In 9nstitute ( ta 5 -end 2007 EBRI g 6e . 9o 5f8 p ICI) 9artici is t pahe lead n /ICI ts database. with ing ass accounoc t biati alaon represen nces in speciting the a fied rangesse s, 2t man 022 agement industry in Equis tub y, b categor ond, mies: one targe y, andt /o d rat b 4a e fu 0l1 an (k c nd ) ed Pl s and fu an nd s A non ;s s– etts arget date Are Con bc ae lanced ntrate fd u nd ins . Eq A target uities date fund pursues a long-term Security Audit standard. Moreover, EBRI has obtained a legal opinion that the methodo16% logy used meets the privacy 15% Figure A10, 401(k Employ ) Pee Ben lans' Lo efi an ts S Ofecurity feriP ng an ercAdministra end taPart ge oficip Ac tion a cnt ou ( n Us S t ep B e aby tem lanc Pe be lan Si 15% In rv ).e Available at sze te d ................................ in 15% Non-T arget Date Bal................................ anc15% ed Funds . 2215% 401(k) 14% Plans Draw Many Younger Wor Me 14% dke ian rs ten and New Hires ure: 6 years Into Retirement Saving 2 portfolio that automatically rebalances to 13% be more focused on income over time. 2 501 to 1,000 12% Note: A 12% verage and 1,145 median 401(k) loan am 799,ounts are calcu 176 lated am 57,2 ong 182,478,359 71,677 20s 6% 21% Equities include equity funds, company stock, and the equity portion of balanced funds. Funds include mutual funds, bank serv andic G e of individual investors. ICs and/or other stable ICI’s value members funds include mutu4 al 0 fu .9nds, exchange5-6 traded f .1 unds (ETFs), cl5 ose 5.2d-end funds, 401(k) plan average asset allocation, percentage of total assets, selected years Younginvest er 401( ment st k) Plan Part rategy ici using pants a mix of Tend to ass Inves et cl t a asHi ses, gh e or ass r Shar et all e of Ass ocatets ion, i th n E at the quities fu ................................ nd provider adjusts to becom ............. e 8 Age standards of the Gramm-Leach-Bliley Act. At no time has any nonpublic personal information that is personally 20 www.dol.gov/sites/dolgov/files/ebsa/researchers/statistics/retirement-bulletins/private-pension-plan- Years o f Tenure Zero Pla >n 0s tO o f1 fe 0rin> g1 T 0a tro g e2t0 P >a 2r0 ti ci to p a 3n 0ts O >3 ff0 e rte od 40 P> a4 rt0 ici tp oa 5 n0 ts H >5 o0 ld itn og 60 > T6 a0 rg te o t D 70 ate> F 7u 0n td o 80 >80 to 90 >90 to 100 Holden, Sarah, Steven B participant ass, and s with 401( Craig Co k) loans at peland. year-end. 2025. “What Does Consistent Participation in 401(k) Plans Younger a 1,001 n tod 2Lo ,50wer 0 -Tenure 1 d Part 782icipants Are Mor 1,2e 05Likely ,340 2% to Hold 9Tar 6,92get 5,84 Dat 0,265e Funds 80,414 30s Most 4collective trusts, life insu 01(k) plan participant rance separate s are yo1% ung accounts, a er than a nd any po 15% ge 50, b oled investm ut the majo ent product rity of 40 prim 1(arily invested in th k) plan assets e security indicate are 15% held by those d. aged 3% Years of Tenure Group Figure an Of w Zd u e Ar11 onit invest , 4 hic0 h1( : ta >0 k r)tment tru g Loan oe 1 t d 0ate B fu ala > sts 1n 0d nces (U tso ITs 2 a0 r................................ e) i an th n > 2 o0 pe United States ttio on 30 >30 to , and 4................................ 0 3 > UC 5 4.0 1ITS to 5 an 0 d simi >50 lar fu to4 ................................ 6 90 .0 nds >offere 60 to 7 d to i 0 > nv 70 estors in to......................... 4 8 90 .1 ot >8her 0 to 90 >2 93 0 to 100 less focused on growth and more focused on income as the fund approaches and passes its targe 9% t date. identifiable, such as a DaS teoc Fial Security n unds T umb arge er, been tran t Date Fundssferred to o Target D r sh ateared Fund wi sth EBRI. Assets 0 to 2 95.4% 2.9% 0.5% 0.2% 0.1% 8% (*) (*) (*) (*) (*) 0.9% • On average, younger 401(k) plan participants allocate a higher share of their assets to equities bulletins-abstract Source: T -2023. abulations from pdf 2007 . EBRI 2013 /ICI Participant-D 2018 irected Retir 2023 ement Plan Data 7 40s Young Source: T er and Lo abulations from 16wer 38.2-Tenure EBRI d P /ICI artici Participant-D pants Airected Retir re More 20% Likely ement Plan Data Collecti to Hold Target Date on Project Funds ................................ 10% ............. 9 Generate? Changes in 401(k) Plan Account Balances, 2019–2023.” ICI Research Perspective 31, no. 6, 50 or older. At year-end 2023, 64 percent of participants were younger than 50, with a median age of 43 (Figure 1). 9% 20s >30 96 No .0% te: The tenu 2.4 re % variable is g 0.4 en %erally years 0.2 wo % rking at c 0urr .1% ent employe(r a *) nd thus may (* ov ) erstate yea (* rs o ) f participati (*on ) in the 401((k) *) 0.9% Young Eq er uit40 y, 1 b(o k) ndp , lan mo n partic ey, an ipan d/orts b were alanc m ed ore li funds ke ; ly to hold target date funds than older 401(k) plan participants. At jurisdicti 0ons. ICI also represents its members in their capacity as investment advisers to collective investment trusts >2 to 5 94.3% 3.4% 0.6% 0.3% 0.1% 0.1% 0.1% 0.1% (*) (*) 1.1% • Company stock is equity i Collection n Project the plan’s sponsor (the employer). 2,501 to 5,000 273 963,448 83,512,199,594 86,681 75% 50s 20% 7% 16 than older participants. At year-end 2023, 75 percent of the assets in the EBRI/ICI 401(k) database were 1 to Fi 1 g0 ure A1 12 1 ,t Loans o 25 No te: F 2rom A 6 ta to rge 4 500 t d 1(k ate 5)1 fu P to nd lans T 1 ty 00 picen ally 10 d re 1ed tba o to 2 lan 5 B 0 cee s it 2 Smal 5s p 1 tort o l5 fol ................................ 00 io to 50be 1 tco o m 1,e l 00es 0 s f1 oc ,0 us 01 ed t................................ o on grow 2,5 th 01 an to d more 5 ,001 t...................... o >10,000 2 A3 ll Plans 30s 94 pla .7% n. and 3 E .BRI 1% Issue 0Bri .6% ef, no. 641 0.3% (August) 0. Av .1%ailable 0 at .1 % www.ici.org 0.1% /files/202(5/per *) 31-06.p (*)df and (*) 1.0% The cross-sectional analysis for this publication found that consolidating the multiple accounts across a majority of Because and older comp p anartic y 1 s0 to 0 ip c o ants kr few ten er d to hav 1e 01 la trger ac o 500 count balances 501 t0 o. 1 1,, ass 000 ets are 1,0 mo 09 1.re 3 to he 5,0avily conce 00 ntr >5 ated ,00 7.0 0among the older >20 to 30 Concentration in Equities Has Changed Since the Global Financial Crisis ............................................................... 10 >5 to 10 year(C -en ITs d 20 ) and reta 23, 93.2 7 % 9 il p sepa ercent 3.8rately ma % of particip 0.na 8% ged ants acco in the 0.un 4%ts (SM ir twen As). 0ti .1e ICI Associ % s held tar 0.1ge ate M %t date funds, co embers include se 0.1% mpared 0.1% rvice pro with 0viders to member .1 6% 6 percent 0.1 of % 1.3% 5,001 to 10,000 144 1,012,729 82,170,762,867 81,138 60s US De • Money f partmen focuse und t of sd on in cLa ons bor, Em com ist of e as it ap those ployee proach fun Bds enef es an de its s d pas igne Se 11% curity ses the d to ma Adm target d intain iniate of th strat a stable ion. e fund 2 share 02 2, which is u ,5 50b 0. p Pric rivat e. sually includ 5 e Pens ,000 ion Plan ed in th 16% 0,00 e 68% 0Bulletin 1 40s 93 So .0invest % urce: Ted abula i 4.n 0 tio e %ns quity securiti from E0 BR .9% I/ICIes. Part T icip hat 0an .5 % t-D equ irec ity ted s Re hare 0.2tire % var menit P es by lan 0. Da 1 p %artic ta Coip llec ant 0 tio .1 n P age, ho % roject wever, 0.1% from 9 0.1 0% percent 66% 0of .1% the 1.1% the providers to the single individual o Of whic ww h: ta w.eb rget d ri.org ate fu /docs nds /defau are an lt o-p s wning them re tource/ ion N pb um ri befs/ er sulted in an oeb f Pri a_ib_641_k rticipant overall s in - Plong la inc n -2 rease 8aug25 of 3.3 .pd fpe . rcent in the average 401(k) 401(k) participant groups. At year-end 2023, 63 pe Nurce mbe nt r o of f P 4l0 a 01(k) .n 1 Pa p rtici lapn a ass nts ets8 w .7ere held by participants 5.21% 8 in their fifties >10 > to 1 0 2 t0o 20 91.4% 4.3%16% 1.3% 0.7% 0.3% 0.2% 0.2% 0.1% 0.1% 0.1% 1.4% 22% partici firms an pan ts >1 in d CIT 0,0 the 0fund’s n 0 tir rust companies. sixties ame. Fun (Figure ds includ 8, e m 92 left utual fu panel nds, b ). Youn ank co ger p llective trusts, life insu 3,0 a8 rticip 8,905 ants also all rance s ocat 235 17 epara ,ed 016 a te acco ,4h 23 ig ,3 h1 unts, a er shar 5 nd an e of y the 76 ir , 401 084 ( 18 k) plan 63% 50s 92.0% 4.3% 1.3% 0.7% 0.3% 0.2% 0.1% 0.1% 0.1% 0.1% 1.0% 401(k • ) Pla Stable n Lo His ans Are Wi valu torical e pTa roducts bles dely Availabl an , such d Grap as e, g hs but uara 19 a 75 ntee Smal –2023 d i l nves S har (Version tm e Tak ente Them c 1.0 ontrac ). W ................................ as tshin (GICs gton, ) DC: US De and other stable part ................................ ment of value f Labor unds, , are .... 11 assets of participants in their twenties to 61 percent of the assets of participants in their sixties. Equity, bond, money, and/or balanced funds; >20 to 30 plan acco 88 un .9t b %alance. 5.0 T %his statisti 2.1% c should be interpreted wit 1.2% 0.5% h cau 0.4tio %n, as it may 0.2% not repr 0.2% esent the total 0.1% 401(k) assets 0.1% 1.2% pooled investment product primarily invested in the security indicated. >5 tor sixties o 10 . All 126,107 10,616,401 829,263,561,074 78,112 Years of Tenure* 401(k) Loan Balances as a Percentage of 401(k) Plan Account Balances for Participants with 401(k) Loans by Plan Size, 2023 60s assets 91 to .3% target d 4at .2e fun % ds. Partici 1.4% pants0 in the .8% ir twen 0.3ti % es invested 0.3% 70 perce 0.nt 2% of their ass 0.1% ets in tar 0.ge 1% t date fu 0nd .1% s, 1.4% Plans 6 2 reporte Emd plas oy o ee Ben ne cate efigory. ts Security Administration (September). Available at Ho Th ldis upd en, Sarah ate e, Pe xtends prev ter Brady, ious f and indings from Michael H the p adley. roj 2006. ect for “401(k) 1996 through Plans: A 2 2022 5-. F Yea or year r Retros -end pe2022 ctive.” res In ults, ves see tment company stock; and GICs and/or >30 86.5So %urce: 5 T.ab 6% ulations fro 2.7m % EBRI/ICI 1 P .5 art %icipant-D0 irec .8% ted Retire 0m .5 en %t Plan Da 0.ta 3% Collection P 0.2 roje % ct 0.2% 0.1% 1.6% Appe ow ndned ix: EB by th RI/ICI e individual. 401(k) D Tatabas he impact of acco e ................................ unt consolidation ................................ varied with the partici ................................ pant’s age and tenure wi .................... th the 13 0 to 2 9% 19% All >2 to 5 93.2% 3.6% 0.9% 0.5% 0.2% 0.1% 0.1% 0.1% 0.1% 0.1% 1.3% ControllinPe g for rce n 401(k tage ) o fpl pan lan s participant age, average acco Funt balanc igure 1 es increase with the length of tenure a worker has at Conce 48%ntration in Equities Has Changed Since the Global Financial Crisis compared with 36 percent of assets for participants in their sixties (Figure 7). • 401(k) plan loans are widely available, but a small share take them. At year-end 2023, 77 percent of • o theOther is t r staww ble w.d va he lu ol. re e gov/ fu sid nd ual for ot s sites/dolg he ov r i /f nves iles/ebsa tments /resea , such rchers as 0 real /stat .5 es ist tat ice s/retireme funds. 1 1.nt 3 -bulletins/private-p 1ension 7.6 -plan- All Holden, B 93 ass .2% , and Co 3.6 peland % 2024 0.9% . Results f 0.5or earli % er y 0.2 ears % are a 0va .1% ilable in ea 0.1rli %er issues 0.1 of ICI Research % 0.1% Perspective 0.1% 1.3% 401(44% k) PlaCom n Chpan arac y I tenst ristitute Res ics by Plaearch n Ass e Pers ts, 2 44% pe 02ctiv 3 e 12, no. 2 (November). Available at >2 to 5 100 15% 18% (*) = less than 0. curren 05 percent t employer. The largest increases in average account balance occurred among older participants with fewer 0 to 2 401(k) Participants Represent a Range of Ages their job. Among participants in their 40s, for e $1xampl 8,433 e, average account balances range from around $24,000 for those 401(k) Plan Loans Are W 1 idely Available, but a Small Share Take Them Sources of Data and In $18,942formation Reported ................................................................................................ $18,827 ........ 13 $16,836 $17,132 19 1 39% $17,961 (*) = less than 0.05 percent $17,587 The as • Of w set all Unk 401 h(nown, whi io c bu k) cation of h: ta plan p lletrin ge-t d histo articipants i ch i an te di ri fu svi cal 26% th n du d-e final stab al $ 1 w 4 a7 rles e ,0 e 6 1( re i a 8 -category n 6 a k nd o )n p plans al pla t-igra on n ph , co pas rticip .p lowin nsis df $.1 ant ts 8 g of , l 1 soa 2 h ass 7ns, as 0ets change . b 5 u tt only hat coul d since 20 15d not perc 10 ent 07 in be .9 id of e part a w ntified. ay icipa that nts is w c Aho ons v 1e 7 wer r.a 1 ist ge ent e Ael cwit cig ou ibl h n e tthe for >5 to 1(0www.ici.org/Research/Defined-Contribution-Plan 21% s/401ks/EBRIICI401kInvestorDatabase) and EBRI Issue 14% The analysis includes the 10. ww6 m w.ici.org illion participants in t /system/fil he year-end 2 es/att $17 achments ,630 023 EBRI /pe /ICI r12 401(k) datab -02.pdf. ase. $15,246 years of tenu 37% re P. F erce or ex ntag ample, e of act among pa ive 401(k)rtic pla ipants in th n participan eir six ts and ties w 401(k) ith tw plan o ao sse r fe ts wer yea by partrs of tenu icipant agre, the a e, 2023 verage $15,448 $16,732 $15,331 $16,010 1 Recently hired 401(k) plan participants EBRI/ICI were more likely to hold target date funds than those with more years on the with two years of tenure or less to more than $200,00F 0 f igor thos ure A1 e with 2 more than 20 years of tenure (Figure 4). While a majo 80 rity of 401(k) plan participants are in plans that allow loans, relatively few participants took loans. Among The an alysis incl Pu la dn e s A $ts 1 h s 2 ee , 5 1 ts 7 08 .6 millio$ n1 p 2a ,6 rt5 ici 5T pa on ta ts l P inl a th ne s year-end 2T 0o 23 ta E l P Ba RrIt/iIc CiIp 4 an 01 ts (k) database To .tal Assets Balance $11,600 2 >1increase 0 to 20 d loans ha use of d targ loa et nsdate outst fun and ds in (Figure g against t 31% 9). heir Firs 23% 401( t, acros k) spl al an l a acc ge g ounts roups . For , the tho share se partic of pa iprticip ants w ants ith 9% w loans ho h, olod uts no tanding Inves Brieftm (www.ebr ent Options i.org/ ................................ publications/research-pu ................................ blications/issue-briefs 31% ................................ ). ................................ 34% ......... 13 A target date fund typically rebalances its portfolio to become less focused on growth and more focused on income as it approaches and passes the target date of the fund, account balance increased 4.3 percent with the consolidation of their multiple accounts. Among participants in their job. At year-end 2023, 78 percent of participants with two years of tenure or less held target date funds, compared Participants with longer tenure have Lo h aa nd s m Fore time rom 401 to (k) co Pl ntribu ans tT e eto t ndhe edir to acco Be unts Sm and e all arn investment returns on 2 $A 0l lto $250,000 33,549 24 16 0,0 5.7 07 10 $0 3.,0 541,077,455 100.$ 014,361 >2 pl 0 ans to US G 30 for eneral which Ac loan countin data were avai g Office. 1997 lable . “40 in 202 1(k 3, ) P 23% 63 ension percent Pla ns: Lo of the 4 an 01 Prov (k) ipl sions Enhance ans, covering 7 Partici 7 pepation r5% cent of bu part t May icipan ts, Distribution of Plans, Participants, and Assets by Plan Size which is u A targesually inc t datHo e fld u luded nen, d typ Sarah in the ically fund’s , and Jack reba nam lance e. s iVan ts po Derhe rtfolio i. to2 b 001. ecom“4 e 0 le1( ss kf)o cu Plan sed A o sn s et All growtocat h and ion m, Account ore focused Bala on inces, ncome and Loa as it appn roAct achivity es a in nd passes equities in amo the unt ir 4 s were 01(k) pl 9 an pe rc acco entunts f of partici ell bpan etwee ts’ n 20 remainin 07 and g ac 2023. count balanc Second, e, o com n pare avera d ge with 20 , at year 07,- en participants d 2023. younger 23% 7 fifties or si 60 xties with more than 1 30 years of tenure, the average account balance increased 2.7 percent with the Distribution of Plans, Participants, and Assets by Plan Size .................................................................................. 13 Equity > F $ u At yea 2 n5 d0 s,00 r- 0end to $2 6023, 3 25,000 percent Compa of the pa n P y 2 eS 5 rce ,t0 o6 n ck² t0artic ge ipants in th of eligible pa e da rtiB ci 3a 1 p ta l9 a abase ,n n 6 tce s 71 b d were missi y Fp ua nrd tis cipantng a a 1 g 0e , birth date ,5 2 28 0,2 43 37,69 B entry 7 ond F, w und ere y s ounger th 32,935 Ga IC n s²,³ and Other Stable Value Money Funds with 48 Of w perce hicnt h 12 : ta ofr p geartic t date ip fu ants nds w a ith re more an opt ithan on 30 years of tenure (Figure 8, right panel). >3thos 40 0 1(k) e contrParti ibutions. ci pants’ Account Balances Tend 15% 89.3to Rise With 89.3 Participant 3% Age and 89.2 Note: Funds include mutual funds, bank collective trusts, life insurance separate accounts, and any pooled investment product primarily invested in the security indicated. the targallowe et dated olo f tans he Affect f. und In 20 , w In hich com 23 is , u 15 esu Se a plcur ercent ly inity for clud of ed S parti inom th14% ee.” cipan funLett d’ts s n in er Report ampl e.ans that , GAO/H allowe EHd S l-oans 98-5 , (or Oct 12 ober) percent . Was of hin agton, ll 401DC: US (k) partici pants, 1999.” Investment Company Institute Perspective 7, no. 1, and EBRI Issue Brief, no. 230 (January). than age 50 were more likely to have high equity concentrations in 2023, whereas participants aged 50 or older were 15% Although co 1 nsoli mos datit p on o lans in f their multi the 2023 ple acco EBRI un /ICI 401 ts. (k) database are small, most participants and assets are in large plans Funds >$625,000 to $1,250,000 22,074 407,102 Age1 g 9r ,8 o8 u0 p,026,568 48,833 26% 20, or were older than 69. They were not included in this analysis. Source: Tabulations from A target date EBRI fund typically reb /ICI Participant-Directed Retir alances its portfo 13 ement Plan Data Collecti lio to become less focused on Project on growth and more focused on income as it approaches and 11% 11% Tenure Note: Fund Com s •i ncl parison o u40 de 40 1( muk) p tua f D l fla uata nn ds, Acros account ba bank s co Yllears ectila v ................................ ence trusts s, ten life d insu to r increa ance se................................ pse arawi te a th p ccou ar ntti s,cipant and any ................................ age an pooled in d ve te stn mure. ent p rContro od...................... uct plrliim ng a rfor ily invest 14 ed in had loans outs Ge tanding neral Ac (F cou igunting Of re 10). fice. Elig Availab ible partici le at pan ww tsw.g in the ao.gov ir 40s /ass and ets/h 50ehs s were -98- mor 5.pde f. likely to take out loans, as 9% 1996 1999 Av 2002 ailable 2007 at www.i 2008ci.or 2010 g/sys 2012 tem/fi Form 2013 les/attac 5500 2014 hments 2015 /per0 2016 7-01. 2017 pdf and 2018 www.e 2019 bri.org 2020 /docs 2021 /default 2022 - 2023 less likely. For example, more than 90 percent of 401(8% k) plan 8% participants Inve is n tm their ent tw Catenties egory had more than 80 percent of >$1,250,000 to $2,500 7% ,000 18,977 524,673 7% 33,655,795,453 64,146 (Figu 40r1 e (kA1 ) L)o . aM A nore than g ae s G a rP oeu r 90 p cen tp aercent ge of of the plans in the database have 100 participants or fewer, while only 1 percent of Size ofpasses the tar Account Ba get date of the fund, w lance hich is usually included in the fund’s name. 6%6% Controlling for 401(k) plan participant tenure, average account balances typically increase with participant age. Among 17 5% 5% Younger 401(k) Plan Parti 5% cipants Tend to Invest a Higher Share of Assets in Equities the secu rity indicated. The tenure variable is generally ye22% ars working at current employer and thus may ov 4% erst 4% ate years of participation in the 401(k) 8 GICs are insurance company products that guarantee a specific rate of return on the invested capital over the life (percent of plans) were At year 2 eli-gible end partici 2 part 02 pan 3icip , the t aants g avera e, avera witge h ge b ac etwe acc count en ount balanc 1 b0 al ance and 30 was es years increase $78 ,of 11ten 2with an ure d t (Figure th he e m amo ed u11 ian nt o ) w . f t as enure $15,4 a work 48, bu 2% er h t acas count at th bal eir anc job esan varied d, At year-end 2023, 11 percent of the participants in the database were missing a date of hire entry and were not >$2,500,0s 0ource/p 0 to $6,2briefs 50,00/0 0 201ib.pdf 15,0.8 8 785,055 58,251,908,628 74,201 their Reac mcount aining bal 401anc (k) es inves Accountted Bala in equ nce ities at year 20s -end 20230s 3 compared w 40s ith less than 50s half at year 1% 60s -end 2007. IA n ll <$Refe 10,0r 0GI ences 0 Cs are guarante ................................ ed investment contracts. ................................ 7% ................................................................ 37% .......................... 24 the plans have 20 more than 1,000 participants. Nonetheless, roughly 80 percent of participants and assets are in plans plan. Sixties participants with between five and 10 years of tenure, for example, average account balances range from just under 9 of the contract. 24% 22% Young >$er 6,2contr 40 50,1 0(0k) ollin 0 tp olan g for $12 p ,5 artic tenure, 00,0i0 pan 0 avera ts alloc 5ge ,3ate 7 ac 1 a h count igh b eral share ances g of 6ener t 60 heir ,33 all p 7y in ortfolios to e crease with p 4qu 6,6iti 4art 0 es ,7icip 8 than 1,a 48 nt a d 4 o older ge. For partic exam 70ip ,6 p ants 3 le, 2 at y (Figure ear- 1 widely. Zincl erouded (In nofact l in this oan , )31 an percent alysis. of participants had 94% account balances 85% of less80% than $5,00080% , while 18 pe 89% rcent of partic 85% ipants $10,000 to $20,000 18% 30% 46% Minor investmcontr ent options ast, the are n share ot shown; th of partici erefore pan , com ts i pone n th nts do eir 60s not with add to 100 more perce than nt. P 80 ercent perce ages nt are do of the llar-weigh ir 401(k) ted a pla verage n ass s. ets in equities fell from Note: Funds include mutual funds, bank collective trusts, life insurance separate accounts, and any pooled investment product primarily Source 1 :with Tabu mo latir oe ns th fra on m 1 E00 partic BRI/ICI Pipa artints cipa , i nnclu t-Dire di ct neg d about Retire thre ment e P-lfi an fths of Data C as ols leets ctio an n Pd partici roject pants in plans with more than 1,000 $26,000 for part Ficip iftieants s in their 20s to more than $100,000 for participants in their 60s. Older workers are more likely Notes E q................................ uity Funds Company ................................ Stock¹ Balanced Funds................................ Bond Funds GICs² ................................ ,³ and Other Money F................................ unds . 26 Account balances are participant account balances held in 401(k) plans at the participants’ current employers and are net of plan loans. Retirem Memo: Equities4 ent 401(> k) $1 plan 2,500lo ,0ans 00 toten $2d 5,to 000be ,00 small, w 0 2,ith 652an average unpaid 65 bal 0,5anc 99 e of $8,653 4and 6,0 37% 6 a 2,2 median 46,397 of $4,907 at y 70,8 ear 00-end >0 to 10 percent 1% 5% 8% 9% 6% 6% 2 >$20,0Internal 00 to $3 00 R ,0 ev 00enue Service. 2025. Retirement Pl 20% ans FAQs Regarding Hardship Distributions. Availab 26% le at had 7). W a 18hil cco eend unt equi balances 2023 ties ,com par great prise ticipants e 75 r than pe in rc t $100 h ent eir o fort ,f all ass 000 ies 23% (Fi with gur ets two i e n3 th ).y e The var ears EBRI or l /ICI iation ess 4 of 0 in accou 1( te k)nure data had nt bala base, an the nces re avir erag share fle e 4 cts ra 01(k) t ng he es p ela ff from n ac ectscount of 90 various invested in the security indicated. Not all participants are offered this investment option (see Figure A7). 30 pe 9 rc Other stable v ent in 2007 to alue f 13 unds i percent nclude sy in 202nt 3, wh hetic GICs, ile the whic share h co with nsist of a portfol between 40 pe io rce of fixed nt and -inc 60 ome securiti percent of es as “w sets rappe in eq d” uities Stable Value savings held in partici A pan ccots un plans at previou . t balan ces are s em net of ployers or rolled ove plan loans an r into I d incl RA ude s are not includ only participants’ ed. account balances at their current employer. to have >$25higher ,000,00 compe 0 to $62 nsat ,500ion ,00 an 0 d more 1,82 l 7ikely to have rolled 97 ove 4,29r ass 0 ets from a 6 p 9,r 7evio 38,9us employ 40,320 er’s plan7 i1 nto t ,579heir >10 to 20 perF co ern tit es 1% 3% 4% 4% 2% 3% >$20 302 ,0 3 0 . 0For thos to $40,0e 00 w1 ith 00loa or ns, few t erhe unpaid loa 1 01 tn o 5 ba 00 lance 21% as a5 p 01 erc toenta 1,00ge 0 of remain 1,001 ing acc to 5,00ount balanc 0 24% >e was 5,000 9 percent, on 3 Source: Tabulations from www.irs.gov/r EBRI etirement /ICI Participant-D -plans/retireme irected Retir nt em -pent Plan Data Collecti lans-faqs-regarding on Project -hardship-distributions (updated August 2 pe rcent for bal pa anc rticipants e of about in $ th 24 eir ,000 20s to , com 61 pared w percent ith a for n part avera icip ge ants 40 1( in kt)hei plan r 60 acco s. unt balance of nearly $400,000 amo 4% ng GICs are guarante Figures factor ed investm s, such a ent contracts. s participan t age, tenure at their current employer, salary, employer and employee contribution rates, Funds with a guarantee (typically by an insurance company or a bank) to provide benefit payments according to the plan at Tincrease he sample of participa d from 17 nts change percent to 63 s over tim percent e. . Investment Category > S$ ee th 62,50 e app 0,000 en to dix $1 for mo 25,000re de ,000 tail on the calculatio 705 n of acco 84un 1,5t balan 23 ces. 61,760,102,635 73,391 >20 to 30 percent 14 1%Number of 2% Plan Participa3% nts 2% 1% 10% 2% >$current 40,000 temp o $50 loyer’s ,000 plan. 22% 21% 12% 11% 11% 11% Thirti11% es 11% 10% average (Figure 10). The average ratio of loan balance to remaining acco 11% unt balance declines w 10% ith both age and years 13% 10% Note: Funds include mutual funds, 26, bank co 2025; llective t accessrusts, life ed January insuran 28, ce sepa 2026rate acc ). ounts, and any pooled investment product primarily invested in the security indica 9% ted. rollov ers f partici rom other pants in plans, the a ir s fisfties et all wi ocat th more ion and than market 30 y r ears eturns of te , loa nure. n a ctivity, and withdrawals. Source: T The di boo sabulations from tri k v bu alue. tion of p EBRI lans, /ICI p Participant-D articipants, a irected Retir nd assets em b ent Plan Data Collecti y plan size in the on Project EBRI/ICI 401(k) database is similar to the >$125,000,000 to $250,000,000 409 917,517 70,402,251,680 76,6% 731 >30 to 80 percent 2% 4% 5% 4% 2% 4% >$150,000 to $60,000 22% 19% 25% Minor 10investment options are not shown; therefore, components do not add to 100 percent. Percentages are dollar-weighted averages. Figure 1, 401(k) Participants Represent a Range of Ages .......................................................................................... 4 Source: Tabulations from W of her tene 40 ure EBRI (Figure 1(k)/I CI pl Participant-D an 11). partic ipa irected Retir nts get the em irent Plan Data Collecti equity exposure also on Project differs by age, with23% younger participants having a much The allocatio Twe n to equiti nties es in target date funds varies with the funds’ target dates. To calculate year-end 2023 >$250,000,000 395 4,289,057 408,801,992,758 95,313 >80 percent (*) (*) 1% (*) (*) (*) >$di 260 s,tributio 000 to $ n 7o 0f t ,00 he 0 entire 401(k) plan universe (Figure A2). 21% 17% 19 Not all participants are offered this investment option (see Figure A7). Some reco Sources: T rdke abulations from epers supplyi EBRI ng d /ICI Participant-D ata were una irected Retir ble to provide co ement Plan Data Collecti mplete asset a on Project and US Departm llocation detail on certain poo ent of Labor led asset Investment Company I Less Thnst an itut $10e. ,00 20026. “The US Retirement >$40, Market, 000 to $50 Thi ,00r0 d Quarter 2025” (January More T)h. A anvailabl $100,0e 0 at 0 higher share of their assets in balanced funds. For example, participants in their 20s invest 24 percent of their assets, equity allocations, target date fund investors were assumed to be in a fund whose target date was nearest to their All 126,107 10,616,401 829,263,561,074 78,112 >$70,(*)= 000 le to ss $tha 80n 0 ,00.5 0 percent 3 21% 16% Figure 2, 401(k) Participants Represent a Range of Job Tenures ............................................................................... 5 1 to 10 11 to 25 26 to 50 51 to 100 101 to 250 251 to 500 501 to 1,001 to 2,501 to 5,001 to >10,000 All Plans GICs are guaranteed investment contracts. classes for one or more of their clients. The 16% final EBRI/ICI 401(k) database includes 11% only plans f 2%or which at least 90 Size of Account Balance Note: The m ww edian accou w.ici.org nt balance /research/stat at year-end 2 istics023 was $15 /quarterly-,448. retirement-market-data. represe 65th ntin birthday g 27 p . ercent The equ ofity their portio tot n of the al equit ass y ex igned f posure, i und was n the a combi ssumed to be e nation of e qua quity l to the ind funds a ustry nd com avera pan ge y stock. The >$80,So 00urc 0 to e: $ T9 ab 0,ula 00tio 0 ns from EBRI/ICI Participant-Directed Retirement Plan Data Collection Project Figures A3 through A12 provide additional detail 21% on account balances, asset allocation, and plan l 15% oans. 4 1,000 2,500 5,000 10,000 Equities include equity funds, company stock, and the equity portion of balanced funds. Source: T percent abulations from of all plan assets could be identified. EBRI/ICI Participant-Directed Retir ement Plan Data Collection Project >$90,000 to $100,000 Nu21% mber of Participants in Plan 14% Fi remaind gure 3, equity er o Distr percent f tib heir equ ution age f of ity e or fun 401 xposure (dk) s P wilan th th com Accou e sa es me through nt Bal target da ances balan te us byced fun Si ing th ze ofds e M Accou , pri orni marily targ nt Bal ngstar L ance ifetime Al et ................................ date fun locatids on Indexes (see . In contras ..................... t, participants 6 Note: Account balances are participant account balances held in 401(k) plans at the participants’ current employers and are net of plan loans. Retirement savings Active 401(k) plan participants 401(k) plan assets Note: Funds include mutual funds, bank collective trusts, life insurance separate accounts, and any pooled investment product primarily invested in >$ 100,000 to $200,000 Source: T held in plans abulations from at previous EBRI employers or /ICI Participant-D rolled ov irected Retir er into IRAem s are not inc ent Plan Data Collecti 21% luded. The tenure vari on Project able is generally years working at current 10% employer and thus may 20 in their 60s invest 42 percent of their assets, representing 68 percent of their equity exposure, in a combination of For an analysis of the changes in account balances of consistent participants in the EBRI/ICI 401(k) database over the security indicated. Fi gure 4, 401(k) Plan Account Balances Increase With Participant Age and Tenure ..................................................... 7 overstate year s of participation in the 401(k) plan. >$200,000 17% 4% Note: At year-end 2023, the median 401(k) plan participant age was 43 years old. equity funds and company stock. Source: Tabulations from EBRI/ICI Participant-Directed Retirement Plan Data Collection Project the four-year period from year-end 2019 to year-end 2023, see Holden, Bass, and Copeland 2025. *The tenure variable is generally years working at current employer and thus may overstate years of participation in the 401(k) plan. 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