BOSTON -- While employees continue to contribute to their 401(k) plans, the average workplace savings account balance dropped 27% in 2008 to $50,200 from $69,200 in 2007, according to Fidelity Investments.

Based on analysis of Fidelity's 17,095 corporate 401(k) plans representing more than 11 million participants, the company found that in 2008 participants contributed an average of $5,600 (pre-tax earnings) to their 401(k) accounts, slightly higher than 2007 levels.

Meanwhile, fewer employees initiated a 401(k) loan in 2008 (9.0%) when compared to 2007 (9.7%). The average loan amount was $8,400. Hardship withdrawals, which are generally only allowed for immediate emergency reasons, continue to trend up at 1.8% in 2008 compared to 1.6% in 2007, Fidelity found. The average hardship withdrawal amount decreased slightly in 2008 to $6,000.

The portion of participants making an exchange to their 401(k) account - shifting money from one investment option to another-was 13.9 % in 2008, a slight decline from the 2007 level of 14.2%. Exchange activity was the heaviest for participants with the largest account balances, with more than 37% of participants with $250,000 or more making one or more exchanges during the year. About 10% of participants with balances from $5,000 to $10,000 made an exchange in 2008.