Certified public accountant firms have the best-performing 401(k) plans, according to the latest edition of the Judy Diamond 401(k) Benchmark Report released April 11.
CPA firms ranked first among 27 industry groups that were evaluated on seven metrics of plan performance, including average account balances, participation rates and even rates of return.
“These guys are preparing their people the best for a positive retirement outcome,” said Eric Ryles, vice president of customer solutions at Judy Diamond Associates, referring to CPA firms.
The 401(k) plans of CPA firms had the highest account balances, averaging $113,193. They placed first in participation rate, second in employee contributions and plan score, fourth in both employer contributions and employee longevity, and fifth in rate of return. Out of a perfect overall score of 7, they scored 19.
“The idea behind the overall score is that lower is better,” Ryles said. “It’s like golf.”
The other industries ranked among the five with the best-performing 401(k) plans were physicians, lawyers and legal services, dentists and banking with overall scores of 27, 28, 42 and 53, respectively.
The CPA industry ranked first for the second year in a row and has been in the top five since the benchmark report started eight years ago, Ryles said.
The report is based on Form 5500 disclosure forms of about 610,000 active 401(k) plans with at least $3,000 in plan assets and at least one active plan participant. The plans cover about 68 million eligible workers
