Half of Traditional IRA Holders Did Plan Rollovers

September 27, 2001 (PLANSPONSOR.com) - Nearly half of the estimated 34 million US households owning a traditional Individual Retirement Account (IRA) this year have rolled over money from an employer-sponsored retirement account.

The Investment Company Institute (ICI) said 44% of the traditional IRA holders had completed a rollover – 76% due to a job change and 22% because of retirement.

As of May 2001, the traditional IRA holders represented more than three-quarters of the estimated 44.3 million households owning an IRA of any kind, according to the ICI. The remainder included 11% of US households holding a Roth IRA and 8% of households owning a Simple, SEP or SAR-SEP IRA.

The portrait of Traditional IRA holders painted in the ICI report included that, as of May 2001:

  • they had a median balance of $30,000 in two accounts
  • the primary IRA decisionmaker or co-decisionmaker had a median age of 50 years, $62,500 in median household income, and $180,000 in median financial assets (including in employer plans)
  • 65% were married, 61% had a college or post-graduate degree, and 18% were self employed.
  • 72% were also had money in an employer DC plan including 56% in a K plan
  • 55% also participated in a DB plan. 

Of the Traditional IRA holders, 35% held the account in a full-service brokerage, 33% with a mutual fund company, 29% with a bank, 27% with a financial planner, and 16% with a discount broker.

The Washington-based ICI surveyed 3,019 US households in May 2001.

– Fred Schneyer           editors@plansponsor.com