Participants in 401(k) programs had significantly higher balances in 2009, with many participants recouping much of their losses from 2008, according to a new report.

In Fidelity Investments’ findings, average 401k account balances ended the year at $64,200, up another 5.7 percent from the end of the third quarter and up 28 percent for the year. The median one-year personal rate of return, or PRR, in 2009 was nearly 27 percent. PRR is a measure of investment performance during a given period of time.

During the same time period, the S&P 500SM had a total return of 26 percent. The average deferral rate remained relatively flat for the year at about 8.2 percent, but the fourth quarter saw the continuation of a positive trend of more participants electing to increase their deferral rates than decrease them.

"The good news is that many workers, in spite of the economy, chose to save in their 401(k)s throughout 2009, and as the markets recovered, so did many Americans’ account balances," said Jim MacDonald, president of Workplace Investing at Fidelity Investments. "When we took a longer-term view and looked at the past decade, we found that many participants were able to significantly grow their nest egg, despite periods of great market volatility."