February 7, 2024 at 8:00 AM Eastern
B of A Report Finds four oh one K Account Balances Increased by fifteen percent in 2023, Health Savings Account Balances Increased by eleven percent
Percentage of Plan Participants Who Increased Their four oh one K Contribution Rate Doubled in fourth quarter
CHARLOTTE, North Carolina – Today, Bank of America Retirement and Personal Wealth Solutions, in partnership with Bank of America Institute, released its fourth quarter twenty twenty three Participant Pulse (MAP #6212241), which found that average four oh one K account balances rose fifteen percent to eighty six thousand two hundred eighty dollars in twenty twenty three, increasing from seventy five thousand forty five dollars at the end of twenty twenty two, due to a combination of participants contributing higher amounts to their plans, and increases in the value of investments.[1] Nearly eighteen percent of four oh one K plan participants increased their contribution rates last quarter, up from just over nine percent who did so in the third quarter.[2] In addition, year-end twenty twenty three Health Savings Account balances increased eleven percent over the prior year.[3]
The Pulse monitors the behavior of plan participants in Bank of America recordkeeping clients’ employee benefits programs, which are comprised of more than 4 million participants as of December 31, twenty twenty three.
“We were encouraged to see more plan participants taking positive actions in their accounts in the fourth quarter,” said Lorna Sabbia, Head of Retirement and Personal Wealth Solutions at Bank of America. “These insights offer signs that people are prioritizing their retirement savings, with more employees increasing their contribution rates and fewer taking hardship distributions.”
The report found that fewer participants borrowed from their four oh one K plan (two point three percent, down from two point five percent in the third quarter), and the average loan per participant declined to eight thousand two hundred ten dollars (down from eight thousand five hundred thirty dollars).2
In addition to four oh one K trends, the Participant Pulse examines engagement across Health Saving Accounts (H S A) and overall feelings of financial wellness. Key findings include:
Bank of America Institute is dedicated to uncovering powerful insights that move business and society forward. Established in twenty twenty two, the Institute is a think tank that draws on data and analyses from across the bank and the world to provide timely and original perspectives on the economy, sustainability, and global transformation. The Institute leverages the depth and breadth of the bank’s proprietary data, from 69 million consumer and small business clients, 57 million verified digital users, four point one trillion dollars in total payments in twenty twenty three and one point two seven trillion dollars in consumer and wealth management deposits. From this robust data set, the Institute provides a unique perspective on the health of the economy. It also elevates thought leadership from throughout the bank that addresses long-term trends and shares these findings with the general public.
Bank of America is one of the world’s leading financial institutions, serving individual consumers, small and middle-market businesses and large corporations with a full range of banking, investing, asset management and other financial and risk management products and services. The company provides unmatched convenience in the United States, serving approximately 69 million consumer and small business clients with approximately 3,800 retail financial centers, approximately 15,000 A T Ms (automated teller machines) and award-winning digital banking with approximately 57 million verified digital users. Bank of America is a global leader in wealth management, corporate and investment banking and trading across a broad range of asset classes, serving corporations, governments, institutions and individuals around the world. Bank of America offers industry-leading support to approximately 4 million small business households through a suite of innovative, easy-to-use online products and services. The company serves clients through operations across the United States, its territories and more than 35 countries. Bank of America Corporation stock is listed on the New York Stock Exchange (N Y S E B A C).
Bank of America is a marketing name for the Retirement Services business of Bank of America Corporation (“B of A Corp.”). Banking activities may be performed by wholly owned banking affiliates of B of A Corp., including Bank of America, N A, Member F D I C. Brokerage and Investment advisory services are provided by wholly owned non-bank affiliates of B of A Corp., including M L P F and S, a dually registered broker-dealer and investment adviser and Member S I P C.
Don Vecchiarello, Bank of America
Phone: one nine eight zero three eight seven four eight nine nine
don.vecchiarello@bofa.com
MAP #6365866
[1] Comparisons to twenty twenty two reference data derived from Bank of America Retirement and Benefit Plan Services four oh one K data platform as of December thirty first twenty twenty two.
[2] Comparisons to twenty twenty three third quarter reference data derived from Bank of America Retirement and Benefit Plan Services four oh one K data platform as of September thirtieth twenty twenty three.
[3] Reference data derived from Bank of America Retirement and Benefit Plan Services H S A data platform as of December thirty first twenty twenty three.
[4] Generation defined by the following birth years: Baby Boomers nineteen forty six through nineteen sixty four; Gen X nineteen sixty five through nineteen eighty; Millennials nineteen eighty one through two thousand, Gen Z after two thousand.
February 7, 2024 at 8:00 AM Eastern
B of A Report Finds four oh one K Account Balances Increased by fifteen percent in 2023, Health Savings Account Balances Increased by eleven percent
Percentage of Plan Participants Who Increased Their four oh one K Contribution Rate Doubled in fourth quarter
CHARLOTTE, North Carolina – Today, Bank of America Retirement and Personal Wealth Solutions, in partnership with Bank of America Institute, released its fourth quarter twenty twenty three Participant Pulse (MAP #6212241), which found that average four oh one K account balances rose fifteen percent to eighty six thousand two hundred eighty dollars in twenty twenty three, increasing from seventy five thousand forty five dollars at the end of twenty twenty two, due to a combination of participants contributing higher amounts to their plans, and increases in the value of investments.[1] Nearly eighteen percent of four oh one K plan participants increased their contribution rates last quarter, up from just over nine percent who did so in the third quarter.[2] In addition, year-end twenty twenty three Health Savings Account balances increased eleven percent over the prior year.[3]
The Pulse monitors the behavior of plan participants in Bank of America recordkeeping clients’ employee benefits programs, which are comprised of more than 4 million participants as of December 31, twenty twenty three.
“We were encouraged to see more plan participants taking positive actions in their accounts in the fourth quarter,” said Lorna Sabbia, Head of Retirement and Personal Wealth Solutions at Bank of America. “These insights offer signs that people are prioritizing their retirement savings, with more employees increasing their contribution rates and fewer taking hardship distributions.”
The report found that fewer participants borrowed from their four oh one K plan (two point three percent, down from two point five percent in the third quarter), and the average loan per participant declined to eight thousand two hundred ten dollars (down from eight thousand five hundred thirty dollars).2
In addition to four oh one K trends, the Participant Pulse examines engagement across Health Saving Accounts (H S A) and overall feelings of financial wellness. Key findings include:
Bank of America Institute is dedicated to uncovering powerful insights that move business and society forward. Established in twenty twenty two, the Institute is a think tank that draws on data and analyses from across the bank and the world to provide timely and original perspectives on the economy, sustainability, and global transformation. The Institute leverages the depth and breadth of the bank’s proprietary data, from 69 million consumer and small business clients, 57 million verified digital users, four point one trillion dollars in total payments in twenty twenty three and one point two seven trillion dollars in consumer and wealth management deposits. From this robust data set, the Institute provides a unique perspective on the health of the economy. It also elevates thought leadership from throughout the bank that addresses long-term trends and shares these findings with the general public.
Bank of America is one of the world’s leading financial institutions, serving individual consumers, small and middle-market businesses and large corporations with a full range of banking, investing, asset management and other financial and risk management products and services. The company provides unmatched convenience in the United States, serving approximately 69 million consumer and small business clients with approximately 3,800 retail financial centers, approximately 15,000 A T Ms (automated teller machines) and award-winning digital banking with approximately 57 million verified digital users. Bank of America is a global leader in wealth management, corporate and investment banking and trading across a broad range of asset classes, serving corporations, governments, institutions and individuals around the world. Bank of America offers industry-leading support to approximately 4 million small business households through a suite of innovative, easy-to-use online products and services. The company serves clients through operations across the United States, its territories and more than 35 countries. Bank of America Corporation stock is listed on the New York Stock Exchange (N Y S E B A C).
Bank of America is a marketing name for the Retirement Services business of Bank of America Corporation (“B of A Corp.”). Banking activities may be performed by wholly owned banking affiliates of B of A Corp., including Bank of America, N A, Member F D I C. Brokerage and Investment advisory services are provided by wholly owned non-bank affiliates of B of A Corp., including M L P F and S, a dually registered broker-dealer and investment adviser and Member S I P C.
Don Vecchiarello, Bank of America
Phone: one nine eight zero three eight seven four eight nine nine
don.vecchiarello@bofa.com
MAP #6365866
[1] Comparisons to twenty twenty two reference data derived from Bank of America Retirement and Benefit Plan Services four oh one K data platform as of December thirty first twenty twenty two.
[2] Comparisons to twenty twenty three third quarter reference data derived from Bank of America Retirement and Benefit Plan Services four oh one K data platform as of September thirtieth twenty twenty three.
[3] Reference data derived from Bank of America Retirement and Benefit Plan Services H S A data platform as of December thirty first twenty twenty three.
[4] Generation defined by the following birth years: Baby Boomers nineteen forty six through nineteen sixty four; Gen X nineteen sixty five through nineteen eighty; Millennials nineteen eighty one through two thousand, Gen Z after two thousand.
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