Close Close
Sign In
Newsletters
Popular Financial Topics Discover relevant content from across the suite of ALM legal publications From the Industry More content from ThinkAdvisor and select sponsors Investment Advisor Issue Gallery Read digital editions of Investment Advisor Magazine Tax Facts Get clear, current, and reliable answers to pressing tax questions
Luminaries Awards
Podcast Center Video Center Webcasts Resource Center Events
About ThinkAdvisor Contact Us Advertise With Us Asset & Logo Licensing Sitemap Terms of Service Privacy Policy Copyright © 2024 ALM Global, LLC. All Rights Reserved.
ThinkAdvisor

Retirement Planning > Retirement Investing

By the numbers: Retirement planning and Roth IRAs

By Lloyd Lofton

X
Your article was successfully shared with the contacts you provided.

A nonpartisan Employee Benefit Research Institute research report has data showing that balances of Roth IRAs grew at more than double the rate of traditional IRAs.

For individuals ages 35 and older, the average and median balances for roll-over IRAs were higher than for each of the other plan types, particularly once the account owners reached age 40 and older.

In addition, the report classifies five types of IRAs with three of particular interest for this article:

        1. Traditional IRAs (TOFC),
        2. Roth
        3. Traditional rolled over from other tax-qualified plans (TOFR)

The report shows the distribution of the IRA accounts in the database as of year-end 2012 for the above classified IRA types to be:

    1. Traditional IRA (TOFC) –34.8 percent
    2. Roth – 22.7 percent
    3. Traditional rolled-over from other tax-qualified plans (TOFR) – 28.6 (combined traditional IRAs, 63.4)

Additional findings from the report:

    1. Traditional IRA (TOFC) – 41.8 percent were individual
    2. Roth – 28.1 percent
    3. Traditional rolled-over from other tax-qualified plans (TOFR) – 34.2 percent were individual

For individuals ages 35 and older, the average and median balances for Roll-over IRAs were higher than for each of the other plan types, particularly once the account owners reached age 40 and older.

NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.