As the markets rebound, 401(k) plans are performing better. The latest research from Employee Research Benefit Institute says 2013 401(k) account balances were 13.2 percent higher than the year before. That's great news for retirement preparedness in the U.S.
But not all 401(k) plans are made the same, and they certainly differ from state to state. The retirement savings vehicles have the worst performance rates in Arizona, Nevada and Utah, according to research released today by Judy Diamond Associates, a benefits plan analytics firm.
"We looked closely at about 540,000 401(k) plans across all 50 states and the District." said Eric Ryles, Managing Director of Judy Diamond Associates. "We then determined which state had the highest concentration of under-performing plans, as a percentage of their overall number of plans. Each of these plans suffers from significant challenges."
The following are the 10 states with the worst performing 401(k) plans.
Arizona
Rank: 1
Percent of plans that significantly underperformed: 16.17%
Nevada
Rank: 2
Percent of plans that significantly underperformed: 15.19%
Utah
Rank: 3
Percent of plans that significantly underperformed: 15.17
Florida
Rank: 4
Percent of plans that significantly underperformed: 14.42%
Tennessee
Rank: 5
