Company Stock 401(k) Holdings Fell Off in 2009

December 17, 2010 ( – Participants in 401(k) plans continued to reduce their holdings in their employers’ company stock, according to the latest data from the EBRI/ICI 401(k) database.

The database, the largest repository of its kind on 401(k) participant behavior, shows that the share of 401(k) accounts invested in company stock continued to shrink in 2009, falling by half a percentage point to 9.2% in 2009, according to the Employee Benefit Research Institute (EBRI). Recently hired 401(k) participants also were less likely to hold employer stock.

According to an EBRI news release about the data, other findings included:

  • 46% (or 9.5 million) of the 401(k) participants in the 2009 database were in plans that offered company stock as an investment option.
  • Among participants who were offered company stock in their 401(k) plan, 72% held 20% or less of their account balances in company stock, including 48% who held none.
  • About 5% of participants had more than 80% of their account balances invested in company stock.

More information is here.