At a glance
- Contribution rates held steady through the fourth quarter at an average of 7.2%.
- The figure compares different plan populations rather than tracking the same participants before and after a design change, so it is a gap between plan types rather than a measured return on adding a default.
- Borrowing against plan balances eased in the fourth quarter, with 2.3% of participants holding a loan, down from 2.6% in the third quarter.
The average Bank of America retirement account balance ended 2025 at $113,590, up 13% from $100,300 at the end of 2024, according to the bank's Participant Pulse research. 401(k) Specialist reported the figures in late February; the 2024 average was itself up from $86,000 in 2023. Contribution rates held steady through the fourth quarter at an average of 7.2%.
Average Bank of America 401(k) balance, year-end
Average account balance rose from $86,000 in 2023 to $113,590 at the end of 2025
- Inflow / above zero
- Outflow / below zero
Show as table
| Label | Value ($) |
|---|---|
| 2023 | $86K |
| 2024 | $100.3K |
| 2025 | $113.6K |
Auto-enrollment and escalation balances
Accounts in plans offering auto-enroll or auto-escalate averaged $170,000, $50,000 more than plans offering neither. The figure compares different plan populations rather than tracking the same participants before and after a design change, so it is a gap between plan types rather than a measured return on adding a default.
Borrowing against plan balances eased in the fourth quarter, with 2.3% of participants holding a loan, down from 2.6% in the third quarter. The average loan was $9,300, roughly level with $9,500 three months earlier, and the share of borrowers in default slipped to 10.4% from 10.6%. Fewer than 1% of participants, 0.77%, took a hardship distribution in the quarter, at an average of $5,440 versus $5,360 in the third quarter.
Health savings account balances rose to $5,600 at year-end from $5,030 a year earlier, and the number of accountholders who contributed more than they withdrew rose 36% year to date. Most still use the money for current costs: 72% of respondents said they spend more of their contributions on daily healthcare needs than they save, against 28% who save.
The $113,590 average is below the $30,000 gain President Donald Trump said in his State of the Union address that accounts had posted since he took office, 401(k) Specialist noted.
Reported by the Plans & Sponsors desk from 401(k) Specialist. Published . Corrections