IRAs Hold $19.2 Trillion as $682 Billion in Rollovers Dwarfs Direct Savings
Updated
Updated · CNBC · Jun 28
IRAs Hold $19.2 Trillion as $682 Billion in Rollovers Dwarfs Direct Savings
1 articles · Updated · CNBC · Jun 28
Summary
$19.2 trillion sat in IRAs at the end of 2025, versus $10.1 trillion in 401(k)s, but experts said IRA balances mostly reflect money transferred from workplace plans rather than new household saving.
$682 billion was rolled into IRAs in 2023 by nearly 6 million people, while direct IRA contributions totaled just $89 billion, underscoring how heavily the accounts depend on 401(k) and similar-plan rollovers.
Baby boomers turning 65 at a pace of more than 11,000 a day are driving that flow, with Cerulli projecting rollover assets of $941 billion in 2026 and about $1.3 trillion in 2031.
$3.8 trillion of the $5.2 trillion increase in traditional IRA assets from 2020 to 2025 came from rollovers, while contributions added only $119 billion and market gains contributed $3.9 trillion.
401(k) money is not always best moved: experts said retirees can lose low-cost investments, legal protections and a path back into the plan, even as a federal rollover-advice rule was struck down.
Will adding private equity to 401(k)s finally stop the massive asset exodus to IRAs?
Are millions of retirees unknowingly giving up early cash access by rolling over their 401(k)?
As 401(k)s add riskier assets, is staying put now more dangerous than rolling over?
IRA Growth and the Rollover Revolution: Trends, Risks, and Policy Solutions for America’s Retirement Future
Overview
Individual Retirement Accounts (IRAs) have become a key part of retirement savings in the United States, offering tax advantages to a growing number of people. As of March 2026, mutual funds in IRAs and Defined Contribution plans held $14.5 trillion, with variable annuities adding another $1.4 trillion. A major reason for this growth is the rollover phenomenon, which lets individuals move their retirement savings between accounts as they change jobs or near retirement. This flexibility helps people consolidate and grow their savings, making IRAs an essential tool for long-term financial security.