IRA rollover contributions in the U.S. surpassed $321.3 billion at the end of 2012, an increase of 7.3% over the previous year, with a “large portion” of the contributions coming from defined contribution plans, according to Cerulli Associates.
In 2013, rollovers rose even further to $357.7 billion, an 11.3% increase, Cerulli estimates in its not-yet-finalized 2014 study.
In its Retirement Markets 2013: Data & Dynamics of Employer-Sponsored Plans report, Cerulli found that IRAs represent the largest segment within the retirement market based on assets. IRAs, Cerulli said, “benefit from years of accumulation” in DC plans. However, the report says, “the lack of retirement income component on a widespread basis in DC plans means assets will continue to roll to IRAs, which will drive future growth in that market.”