Saving Rate Reaches Record High in Q1 2025

Workers put away a record share of their income for retirement in the year’s first quarter, according to Fidelity Investments’ Q1 2025 retirement analysis.

The average contribution rate for 401(k) plans reached 14.3% in Q1, the closest yet to Fidelity’s suggested saving rate of 15%, based on an analysis of the millions of accounts it manages.

Other findings from the survey include:

4% of 401(k) participants at Fidelity increased their saving rate, while 4.9% decreased.
Market volatility brought the average balance of 401(k), 403(b) and individual retirement accounts down in Q1 from Q4 2024.
The average 401(k) balance in Q1 was $127,100.

This is good news, but more can be done

Recent research by the Schroders 2025 U.S. Retirement Survey and Northwestern Mutual’s 2025 Planning & Progress Study indicates that participants need over $1 million to retire comfortably.

Seek assistance from financial advisors to educate employees about financial readiness topics, particularly given the recent market volatility.
Contact your recordkeeper about their existing financial wellness programs and ways to promote them.

Contact your SRC Client Relationship Manager if you’d like more ideas about addressing participant concerns.

–Chris Oneal, President, Stones River Consulting

DOL AND LEGISLATIVE CORNER
What’s Inside the One Big Beautiful Bill Act (OBBBA)?

The Trump Administration signed the tax bill known as the One Big Beautiful Bill Act (OBBBA) into law on July 4, 2025. There are several notable inclusions impacting retirement planning.

“Trump Accounts” Introduced:
The OBBBA introduces new birth-based custodial accounts (i.e., “Trump accounts”) aimed at providing financial support from birth to retirement. The OBBBA states that these accounts would be traditional individual retirement accounts (IRAs) subject to special rules until the year a child turns age 18, after which the accounts generally appear to follow the rules that apply to traditional IRAs.

Health Savings Account Coverage Expanded
The OBBBA included two HSA provisions—allowing individuals with high deductible health plans (HDHPs) to enroll in direct primary care arrangements while remaining HSA eligible as long as the monthly fee does not exceed $150, and expanding the definition of an HDHP to include bronze and catastrophic health insurance plans purchased on the Exchange under the Patient Protection and Affordable Care Act. The bill also permanently extends and makes retroactive the special “telehealth safe harbor” established under the Coronavirus Aid, Relief, and Economic Security (CARES) Act that expired December 31, 2024, for HSA-compatible HDHPs.

Tax Rate Changes
The OBBBA includes provisions that reduce tax rates, increase standard deductions, and make the qualified business income deduction permanent. For tax purposes, sole proprietorships, partnerships, limited liability companies, and S corporations are referred to as “pass-through” entities because their profits are passed through to the owners and taxed at individual rates, rather than corporate rates.

Please get in touch with your SRC consultant if you have any questions about the OBBB and its provisions.

COMPLIANCE CALENDAR
Important Deadlines to Remember

July

31: IRS deadline for filing Form 5500 without an extension or filing Form 5558 to extend the Form 5500 filing date. (TPA, Plan Sponsor)

August

29: Final deadline to provide all complete 2024 Plan Year Annual Data to Stones River Consulting. Plans with incomplete data provided will be assessed an additional $250 rush fee. (Plan Sponsor)

September

15: Deadline for remitting Employer Contributions for tax deduction for S Corps or Partnerships with tax extension. (Plan Sponsor)
15: Deadline to adopt a profit sharing plan for 2024 for S Corps or Partnerships with tax return extension. (TPA, Plan Sponsor)
30: IRS deadline for distributing Summary Annual Report (SAR) to participants unless Form 5558 was filed to extend Form 5500 filing deadline. (TPA, Plan Sponsor)

Download our complete 2025 compliance calendar.

FRESH INSIGHTS

7 Signs Your Retirement Plan Needs an Upgrade

Retirement plans can be very complex if plan sponsors don’t have the right partner to help navigate the intricacies. Stones River Consulting created a new guide titled 7 Signs Your Retirement Plan Needs an Upgrade, which helps plan sponsors understand:

There are four critical areas of a retirement plan that need to be effectively managed to maintain a successful one.
Warning signs that a plan may be in danger of falling outside of compliance.
How to get help to maintain a compliant retirement plan that benefits both the plan sponsor and its employees.

To request this guide, click here>>