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April 29, 2017

Who Contributes to Individual Retirement Accounts- CRR Brief

The Center for Retirement Research at Boston College has released a new Issue in Brief:

by Anqi Chen and Alicia H. Munnell

The brief’s key findings are:
  • IRAs were intended to give those without an employer plan access to a tax-deferred savings vehicle.

  • Today, IRAs hold nearly half of all private retirement assets, but most of these funds are rollovers from 401(k)s, rather than contributions.

  • The 14 percent of households who do contribute to IRAs include:

    • higher-income dual-earners who also save in a 401(k);

    • moderate-income singles or one-earner couples, often with a 401(k); and

    • higher-income entrepreneurs with no current 401(k).
  • One way to turn IRAs back into an active savings vehicle – one used more for contributions – is to auto-enroll all workers without an employer plan in an IRA.

This brief
 is available here.Source

Written By

Denise Appleby

Denise is CEO of Appleby Retirement Consulting Inc., a firm that provides IRA resources for financial/ tax/legal professionals. She has over 20 years of experience in the retirement plans field, which includes training and technical consultation.

Denise writes and publishes educational /marketing tools for advisors; available at Denise co-authored several books on IRAs

Denise is a graduate of The John Marshall Law School, where she obtained a Masters of Jurisprudence in Employee Benefits, and has earned 5 professional retirement designations.
She has appeared on numerous media programs, sharing her insights on retirement tax laws.


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