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IRA Contributions Are Up; Are Yours?

Poll QuestionFinally, some good retirement savings news to share.

Average IRA contributions increased during the 2013 tax year, according to a new Fidelity Investments study that analyzed more than 7 million individual retirement accounts.

The average contribution for tax year 2013 was $4,150 – an increase of 5.7% from 2012. That’s an all-time high.

2013 average IRA contributions by age

Age range Average Roth
contribution
Average
traditional IRA
Overall
20-29 $3,370 $3,310 $3,300
30-39 $3,480 $4,210 $3,540
40-49 $3,660 $4,410 $3,820
50-59 $4,720 $5,100 $4,730
60-69 $5,200 $5,140 $4,990
70+ $5,040 $4,960 $4,960

Along with contribution increases, average balances rose as well, to $89,100, a nearly 10% increase. That figure includes both market gains and contributions.

Since these averages are pulled from the millions of accounts Fidelity manages, it’s an excellent way to judge the progress of your IRA. It, of course, doesn’t speak to the retirement savings progress of the millions of Americans who don’t have an IRA.

Average IRA balance at the end of 2013

Age range Balance
20-29 $9,600
30-39 $22,300
40-49 $45,600
50-59 $83,100
60-69 $138,200
70+ $177,700

Those over age 50 saved the most, with every age range Fidelity Investments tracked above that socking more than $4,700 away in either a Roth or traditional IRA.

But 20- and 30-somethings put up some impressive numbers at well, averaging contributions of more than $3,300 in their retirement accounts.

A previous Fidelity study on New Year’s resolutions found that saving more was a top financial resolution for the year, and it appears to be one that Americans actually kept.

“The fact that IRA contributions are up across all age groups is a positive indication that many people are indeed committed to saving for retirement by putting at least a portion of what they earn into tax-advantaged vehicles such as an IRA,” Ken Hevert, vice president of Fidelity Investments, said on the new survey’s release.

Not surprisingly, none of the averages equaled the maximum contribution for Roth and traditional IRAs in 2013, which was $5,500, or $6,500 for those age 50 or older.

Now that would have been some amazing retirement savings news to share.

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Did you contribute more to your IRA in 2013 than prior years?
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