401(K) Plan Asset Allocation, Account Balances, and Loan Activity in 2004

Abstract

Defined contribution (DC) plans are one of the primary means by which Americans save for retirement, and 401(k) plans are the most common type of DC plan. In an ongoing collaborative effort, the Employee Benefit Research Institute (EBRI) and the Investment Company Institute (ICI) collect annual data on millions of 401(k) plan participants to present an accurate portrayal of the behavior of 401(k) plan participants. This paper updates ICI and EBRI's research of 401(k) plan participant activity through year-end 2004 and includes two sections. The first section focuses on account balance information for participants who have consistently maintained accounts between 1999 and 2004. The second section provides a snapshot of all 401(k) participants at year-end 2004, reviewing their account balances, asset allocations, and loan activity.

Keywords: 401(k) plans, Asset allocation, Employment-based benefits, Pension plan assets, Pension plan loans, Retirement plans, Self-directed investments

JEL Classification: D31, G11, J26