Roths IRAs Are on a Roll as Savings Rates Reach a Record High

Average 401(k) balances fell in the first quarter, but savings rates reached a record 14.4% and strong demand for Roth accounts sent IRA contributions to a record high, according to analysis released by retirement plan recordkeeper Fidelity Investments on Thursday.

The market rout that unfolded at the end of March sent average 401(k) and IRA balances down 4% at Fidelity, leaving them at $141,000 and $131,380 respectively. The ranks of 401(k) millionaires also suffered, with the tally down 3% from the prior quarter.

At the same time, the average employee contribution rate hit 9.6% — the highest ever. That, combined with an average ...