Mixed Results for 1st Q 2016 IRA Balances

There was bad news and good news for IRA holders in the first quarter of 2016, according to a recent report by Fidelity Investments.

A Slight Drop

IRA balances dropped slightly in the first quarter, when compared to both the 4th quarter of 2015 and the first quarter of 2015. The average balances are as follows:

First Quarter 2016: $89,300
Last Quarter 2015: $90,100
First Quarter 2015: $94,100

The Good News

As individuals change jobs and leave the workforce, the number of IRAs has also expanded. The number of people in both an IRA and a 401(k) at Fidelity increased 7% in 2015 to almost 1.3 million individuals. While the average combined IRA/401(k) balance declined 2% year-over-year from $267,200 to $260,900, the average combined contribution amount increased 3%, from $11,300 to $11,600.

Self-Employed Savers

Fidelity’s yearly analysis of trends and behaviors for self-employed (SEP) IRAs and Savings Incentive Match Plan for Employees (SIMPLE) IRAs found that while the average account balance for small business retirement plans was lower in 2015, contributions increased in every plan category.
 

For SEP IRAs, the average balance at the end of 2015 was $88,800, a 1% decrease from 2014. Average contribution increased 2% to $14,300 in 2015 and the number of contributors increased 4%.

The average balance for SIMPLE IRAs at the end of 2015 was $36,400, a 4% decrease from 2014. The average contribution for 2015 was $6,380, a 2% increase from 2014. The number of people contributing to a SIMPLE IRA in 2015 increased 4%.