EVERYTHING
Individual Retirement Accounts (IRAs) continue to play a critical role in the financial security of millions of American households. According to the latest study by the Investment Company Institute (ICI), titled The Role of IRAs in US Households’ Saving for Retirement, 2025, rollover activity has been instrumental in fueling this massive market expansion. The report, based on ICI’s annual IRA Owners Survey conducted from May to June 2025, highlights the growing importance of IRAs as both a saving vehicle and a mechanism for financial portability.
The Scale and Impact of Rollover Transfers
The sheer volume of assets managed within these accounts demonstrates their central role in US retirement planning. By year-end 2025, IRA assets accounted for 39% of the total US retirement market, a notable increase from 24% two decades prior. A key driver of this growth is the transfer of funds from employer-sponsored plans; households transferred $670 billion from these corporate accounts to traditional IRAs in 2022.
This consolidation trend shows strong behavioral patterns among IRA owners:
- In mid-2025, about 27 million households, or 61% of traditional IRA–owning households, utilized rollovers.
- A significant majority—86% of households with rollovers—reported that their most recent rollover included the entire retirement account balance.
Consolidation and Ownership Trends
Rollovers are frequently used by individuals to consolidate disparate savings into a single location. This decision is often motivated by strategic financial considerations, as indicated in the survey data. In mid-2025, 63% of traditional IRA–owning households with rollovers stated they wanted to consolidate assets, while 62% expressed a desire not to leave their savings tied to a former employer.
The decision process is highly considered; 62% of respondents consulted multiple sources of information before moving money into a traditional IRA. Furthermore, the report provided insight into overall ownership demographics:
- 44% of US households owned IRAs in mid-2025.
- Traditional IRAs were the most common type (33%), followed by Roth IRAs (28%).
- IRA ownership varied by age, with younger households being more likely to own Roth IRAs than traditional ones, while older households showed higher rates of traditional IRA ownership.
While the market is growing rapidly, contribution activity remains relatively modest across all US households, with only 17% contributing to traditional or Roth IRAs in tax year 2024. However, among those who already owned an IRA, the contribution rate was higher at 38%.
Ultimately, as Shelly Antoniewicz, ICI Chief Economist, noted, "IRAs are the largest and fastest growing component of the US retirement market." Their function extends beyond simple saving; they provide workers with essential portability, allowing them to maintain their benefits regardless of job changes or retirement status. The continued reliance on rollovers underscores how IRAs facilitate labor mobility within the American economy.