Defined contribution assets rose to $4.3 trillion in 2004, a 10% increase over 2003, according to the Annual Marketplace Update Report by the Society of Professional Administrators and Recordkeepers. Assets in 401(k) plans reached a record $1.975 trillion in 2004, a 10% increase over 2003.
More than 409,000 401(k) plans covered more than 50 million U.S. workers in 2004, compared with 395,000 plans and 45 million participants in 2003. Participants in 401(k) plans had nearly 70% of their account balances in stock as of Dec. 31, an increase of five percentage points over the previous year.
The report estimates that almost 12,500 new 401(k) plans will be formed this year, primarily among smaller companies.
