ComplianceTax & AccountingNovember 26, 2018

Ten important facts about IRAs: Investment Company Institute shares survey data

The Investment Company Institute (ICI) recently released statistical data relating to the current state of individual retirement accounts (IRAs). Research completed by ICI reveals the following Ten Important Facts About IRAs:

  1. IRAs make up the largest pool of assets in the US retirement market
  2. The incidence of IRA ownership increases with age
  3. Moderate-income households make up the majority of IRA owners
  4. IRA balances increase with the length of ownership
  5. Equity holdings (mutual funds, etc.) are a common IRA investment option
  6. Annual IRA contributions are infrequently made, but IRA owners who make them do so regularly
  7. IRA growth has been sustained by rollover contributions from employer sponsored plans
  8. Prior to rolling over employer plan assets a large majority of IRA owners consult with their own financial professional prior to executing the transaction
  9. Many IRA owners consult a financial professional to create a personal strategy for retirement
  10. IRA withdrawals are infrequent, are commonly related to retirement needs, and individuals generally consult with a financial professional prior to taking the withdrawal

The Investment Institute (ICI) is the leading association representing regulated funds globally, including mutual funds, exchange-traded funds (ETFs), closed-end funds, and unit investments trusts (UITs) in the United States, and similar funds offered to investors in jurisdictions worldwide.

A more complete analysis of this information and statistics can be found by copying and pasting the following web address to your web browser:

For an opportunity to learn more about IRAs and other tax-advantaged accounts including Health Savings Accounts and Coverdell Education Savings Accounts, consider our on-demand video training offered on a variety of topics. Go here to learn more about training opportunities available to you, or call us at 1-800-552-9408.

Randy Heidmann
Senior Specialized Consultant, Tax Advantaged Accounts, Compliance Center of Excellence
With more than 40 years of industry experience, Randy Heidmann has helped hundreds of financial organizations create, implement and maintain their tax-advantaged accounts programs.