Top 1% of plans hold more than 71% of all 401(k) assets nationwideNews added by Benefits Pro on February 19, 2014
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By BenefitsPro staff

Judy Diamond Associates, the 401(k) plan intelligence provider affiliated with BenefitsPro.com, yesterday released an analysis of the distribution of plan assets nationwide, revealing that the top 1% of plans hold 71.1% of all 401(k) assets.

There were approximately 500,000 active 401(k) plans in Q4 2013, with a collective $3.5 trillion in total assets. Nearly three-quarters, or $2.54 trillion, was controlled by the top 1% (5,000 companies). In contrast, the other 99% (495,000 companies) of all 401(k) plans nationwide control only 29% of the total assets

“This concentration of assets among such a small pool of plans gives large employers an outsize influence on the retirement market,” said Eric Ryles, managing director of Judy Diamond Associates. “Our research showed that fewer than two-tenths of one percent of 401(k) plan sponsors are responsible for fully half of our nation’s 401(k) retirement plan assets. That’s only 630 very large companies controlling $1.75 trillion in assets.”

PlansAssetsVolume
$%#%
Mega Plans2.54T71.1 5k1%
All Other Plans1T28.9495k99%
All Plans$3.5T100%500k100%

This staggering concentration of responsibility for the nation’s 401(k) retirement assets suggests that shifts in the investment options for a small number of plans could have a ripple effect which will impact every aspect of the market.

Judy Diamond Associates based its research on the most recently available 401(k) plan disclosure documents released by the Department of Labor, which are available in its Retirement Plan Prospector database.

Originally published on BenefitsPro.com
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