Rollovers from employer-sponsored retirement plans are fueling growth in IRAs, with nearly half of traditional IRA-owning households in the U.S. indicating their IRAs contained rollovers from employer-sponsored retirement plans, according to the latest research by the Investment Company Institute.
Among households with rollovers in their traditional IRAs, 85% indicated they had rolled over the entire retirement account balance in their most recent rollover, according to the ICI report, The Role of IRAs in U.S. Households’ Saving for Retirement, 2013.
The most recent available data show that households transferred $272 billion from employer-sponsored retirement plans to IRAs in 2008, the Washington-based ICI found. In 2013, about 18 million U.S. households (or 49% of all U.S. households owning traditional IRAs) had traditional IRAs that included rollover assets.
ICI’s survey, released in November and conducted in May, was based on a sample of 3,006 randomly selected, representative U.S. households owning traditional IRAs, Roth IRAs and employer-sponsored IRAs (SEP IRAs, SAR-SEP IRAs, and SIMPLE IRAs).