More than four out of five eligible employees, or 81.9%, had balances in their 401(k) plans in 2007, up from 78.9% in 2006, with increased employer use of automatic enrollment accounting for the rise, according to a survey released today by the Profit Sharing/401(k) Council of America.
More than half of large plans utilize this feature, and usage by small plans doubled, David Wray, PSCA president, said in a news release about the survey.
Among other findings, the typical 401(k) plan has 65% of assets in equities, unchanged from 2006. Assets are most frequently invested in active domestic equity funds, followed by indexed domestic equity funds, stable value funds and balanced stock/bond funds.
Catch-up contributions for participants age 50 and older are permitted in 99.1% of plans, according to the survey, up from 97.4% in 2006.
The survey of 401(k) plan executives was conducted between April and June and covered 1,011 plans with 7.4 million participants and $730 billion in plan assets.