Fidelity Investments' latest report on 401(k)s has both good news and bad news about our preparedness for retirement.

The good: The average 401(k) balance managed by Fidelity reached a record $89,300 in the fourth quarter of 2013. That's a 15.5% increase from a year ago and almost double the low of $46,200 set in 2009.

The number is higher for pre-retirees 55 and older: $165,200.

The bad: More than one-third (35%) of all 401(k) participants cashed out their accounts when they left their jobs in 2013. That number is even higher among younger participants ages 20 to 39.