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Rollovers Up Sharply, Spectrem Report Shows

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According to a report released August 22 by Spectrem Group, “The IRA Rollover Market 2007,” assets rolled over from other retirement accounts, primarily savings type plans such as 401(k)s and 403(b)s, to IRAs in 2007 stood at $489.3 billion, up 38% from $353.4 billion in 2004. This increase marks a significant rebound from an 11% decline in assets rolled over from 2000 to 2004, Spectrem says.

The number of individuals conducting IRA rollovers also has jumped, up 28% to 7.4 million in 2007 from 5.8 million in 2004, the Spectrem report found. By contrast, from 2000 to 2004, the number of individuals conducting rollovers fell 9%, from 6.4 million to 5.8 million, Spectrem says.

“Rollover assets today stand 38% above their 2004 level at $489.3 billion,” says George Walper, president of Spectrem Group and co-author of the report, in a prepared release. “In conjunction with the end of the bear market earlier in the decade, participants– especially those with balances of $100,000 or more–have clearly become more willing to roll assets over. This presents new opportunities for providers and advisors, but may also point to a need for caution should the present stock market turmoil continue.”

The report also found that two-thirds (67%) of individuals who rolled over a balance to a personal IRA did so using a professional advisor.


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