A report from an LT Trustshows that gains in 401k accounts of Delaware employees ran below the national average during 2020.
Click here for the report.
The 401K advisory firm calculated that the average gain for Delaware workers was 23 percent, below the 30 percent national average
The 401K account is used as a substitute for fixed pensions. Typically, the employer matches a portion of the employee’s contribution. The contributions are sheltered from taxes unless the employee withdraws the funds.
After gyrations during the coronavirus crisis, financial markets racked up strong gains in 2020.
LT Trust reviewed the 401K’s of 59,000 American workers across all 50 states during 2020 and found gains in 401Ks were greater than during far better years for the economy.
- Between 2019 and 2020, the average 401K balance increased by 30.3 percent
- Between 2019 and 2020, the average 401K employee contribution increased by 6.12 percent
- Utah saw the largest average balance increase at 47.2 percent, while North Dakota saw the lowest uptick at 11.5 percent
- Despite growth across the board, the 401(k) contributions of males increased 3 percent more than their female counterparts
- Employees aged 21-30 saw the largest average balance increase, at 77 percent.