The average 401(k) account fell 24.3 percent in 2008, according to analysis of millions of account records by the Employee Benefit Research Institute (EBRI). That’s probably a bit less than most investors would have guessed. Even more surprising, over the five-year period from 2003-2008, the average account was up 7.2 percent. That’s not bad, considering that period includes one of the worst bear markets since the Great Depression.

Other key findings:

–The median balance in a 401(k) account increased at an average annual growth rate of 11.4 percent over the 2003-2008 period to $43,700 at year-end 2008.

–Three-quarters of 401(k) plans included lifecycle (target) fund offerings at the end of 2008. These fund choices were most popular among younger investors.

–Despite the talk about increasing levels of hardship borrowing, the level of borrowing remained stable in 2008. Eighteen percent of plan participants had an outstanding loan in 2008, unchanged from 2007.

The study is based on information in the largest databse of its type, maintained by EBRI and the Investment Company Institute. It includes 24 million 401(k) participant accounts at 54,765 employers holding $1.092 trillion in assets.

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