Fidelity: Workers continue to fund 401(k) accounts

Workers on average contributed $1,700 of their pre-tax income to their workplace savings accounts in the first quarter of 2009, Fidelity Investments said in a new report.

That amount was down from $1,860 for the same period a year ago, but up more than 20 percent from 2002 levels, said Fidelity, a Boston mutual funds giant that describes itself as the "No. 1 provider workplace retirement savings plans."

In issuing its report, Fidelity said that it based its analysis on a review of more than 17,500 corporate defined contribution plans and 11.3 million participants. Fidelity added that 97 percent of active participants continued to make contributions during the first quarter.

"There is no doubt that many employers and employees are feeling the impact of this challenging economy but the vast majority of workers are maintaining their commitment to saving for retirement," Scott B. David, Fidelity's president for workplace investing, said in a statement. "In addition to the money that workers contributed, when you add up the employer contributions and the significant tax advantages from putting away pre-tax dollars for your retirement, the combination of these is what makes workplace savings accounts so beneficial for retirement savings."

To read Fidelity's press release on the report, please click here.
(By Chris Reidy, Globe staff)