Trends in Company Stock in 401(k) Plans
November 14, 2011
Q: Company Stock in 401(k) Plans: What is the Trend?
A: EBRI/ICI Database Shows Steady Decline
According to the EBRI/ICI Participant-Directed Retirement Plan Data Collection Project, the largest, most representative repository of information about individual 401(k) plan participant accounts in the nation, 401(k) investments in company stock have steadily declined in recent years.
Specifically, company stock assets in 401(k) plans have declined from 19 percent in 1999 to 9 percent in 2009, down more than half. Among all 401(k) participants with accounts in both 2008 and 2009, 73 percent of participants held no company stock in their 401(k) accounts while 2 percent had all of their accounts in company stock. Younger participants tended to be less likely to hold employer stock than their older colleagues and tended not to hold a high concentration of their account balance in company stock (see figures below).
A full report on 401(k) account activity in 2009, including information on company stock holdings, is available online at both EBRI’s website and ICI’s website. Results for 2010 are currently being tabulated and are expected to be released next month.