Tax Filing Deadline Extended to July 15: What It Means for IRA Savers

By Christina Kilroy

June 18, 2020

On March 21, 2020, the Treasury Department and Internal Revenue Service (IRS) extended the federal income tax filing due date—also known as Tax Day—for the 2019 tax year. Workers now have until July 15 to prepare their 2019 tax returns, as well as more time to consider options to potentially reduce taxable earnings. One of the easiest and most popular ways to reduce taxable earnings is contributing to an individual retirement account (IRA).

To help retirement savers better understand how recent changes to the tax filing deadline may affect them—and how to make the most of it—Sarah Holden, ICI’s senior director of retirement and investor research, offers her insights into the following commonly asked questions.

Why is tax time a good time to open an IRA or contribute to existing IRA?

With Tax Day approaching, now is the perfect time to think about contributing to an IRA, because it offers considerable tax benefits. You might even be able to reduce your 2019 tax bill. If you don’t own an IRA already, it’s also a great time to think about opening an account and joining an estimated 46.4 million US households that have accumulated about $10 trillion in IRAs.

If I don’t own an IRA, is there a benefit to my 2019 tax return filing if I open one between now and July 15, before I file my tax return?

Yes, aside from saving for retirement, a tax-deductible contribution to a traditional IRA (made in 2020 but attributed to 2019) could reduce the amount of taxable income you report on your tax return, which reduces the amount you pay in taxes for the year.

What is the difference between a traditional IRA and a Roth IRA?

IRAs offer a choice: you can pay your taxes now or you can pay your taxes later.Contributions to traditional IRAs are tax-deferred (subject to certain limits), meaning no income tax is paid until you withdraw money from the IRA. In contrast, contributions to Roth IRAs are taxable now, but no taxes are paid when you make a withdrawal (subject to certain restrictions).

What if I contributed to my IRA last year, but did not max out? Can I still max out or contribute more for 2019 before July 15?

Yes, the IRS confirmed that July 15 is now the new deadline for making IRA contributions for the 2019 tax year. If you contributed less than the $6,000 maximum to your IRA in 2019 ($7,000 if you are age 50 or older), then you can still make additional contributions, which may be deductible on your 2019 tax return.

If I already filed my 2019 tax return, is it too late to contribute to my IRA and qualify for the tax benefits?

No, it is not too late. You can still contribute, but you may have to file an amended return for deduction purposes or consider the extra contribution as a nondeductible addition. You should also inform your IRA custodian that the contribution should be attributed to the 2019 tax year.

If I am receiving (or have received) a rebate check from the federal government’s stimulus package, can I contribute it toward my IRA?

Yes. Americans who received a rebate check as part of the government’s $2 trillion stimulus package can direct some or all of this toward their IRA contributions.

Is there limit to how much I can contribute to an IRA for the 2019 tax year?

Yes. For the 2019 tax year, individuals are limited to $6,000 in total contributions to all of their traditional and Roth IRAs. Those 50 or older can contribute an additional $1,000. You’re allowed to make those contributions until July 15.

What is the “Saver’s Credit,” and how do I qualify?

Many workers may be eligible to take what’s commonly referred to as the Saver’s Credit, which can provide a tax credit of up to $1,000 ($2,000 if married filing jointly) for contributions to a retirement plan (such as a 401(k) or 403(b) plan) or IRA. This “Retirement Savings Contribution Credit” is available to workers who file single with an adjusted gross income (AGI) up to $32,000 for 2019. For heads of household, the AGI limit is $48,000, and for those who file jointly, the AGI limit is $64,000.

Everyone’s circumstances are different, so it’s important to check how these IRS rules affect you. For more information on IRAs, check out ICI’s Individual Retirement Account Resource Center.

Christina Kilroy is vice president of the ICI Education Foundation.

https://www.ici.org/viewpoints/20_view_taxday

TOPICS: IRA Investment Education Retirement Research Savings Taxes

2020 Investment Company Fact Book: Letter from the Chief Economist

By Sean Collins

May 19, 2020

A version of this letter by ICI Chief Economist Sean Collins was released in the Institute’s 60th edition of the Investment Company Fact Book.

The US Retirement System Is Stronger Than Critics Portray

By Paul Schott Stevens

May 18, 2020

A recent Washington Post opinion piece paints an inaccurate and misleading picture of the US retirement system by misusing data and making false assumptions. The retirement system is far stronger than portrayed.

Read more…

TOPICS: 401(k)IRA Retirement Research

2020 Investment Company Fact Book: Letter from the President and CEO

By Paul Schott Stevens

May 13, 2020

This ICI Viewpoints is a version of a letter from ICI President and CEO Paul Schott Stevens that was released in the 60th edition of the Investment Company Fact Book.

Talkin’ ’Bout the Generations: ICI Research on Mutual Fund Ownership by Generation

By Michael Bogdan and Candice Gullett

December 11, 2019

Talk about the differences between generations is a hot topic in today’s cultural conversation. And the Millennial and Baby Boomer generations are in the middle of a little generational warfare. But when it comes to owning mutual funds, are there really that many differences?

ICYMI: A Q&A with Members of ICI's Retirement Team

November 19, 2019

For this year's 2019 Annual Report to Members, four members of ICI's retirement team sat down to discuss ICI's legislative, regulatory, research, and communications activities to advocate for well-informed public policies that help Americans prepare for retirement....

Five Key Points on 401(k) Plan Fees from ICI Research

By James Duvall and Steven Bass

October 23, 2019

Thanks to innovation and a competitive market, 401(k) mutual fund fees keep falling. ICI has a window into this information through our study of the cost of providing 401(k)s, in which we take a close look at the expenses and fees of mutual funds incurred by 401(k) plan investors, and in related research on fund fees through a collaborative research effort between ICI and BrightScope.

Happy Birthday, IRA! Congratulations on 45 Years

By Sarah Holden and Elena Barone Chism

September 12, 2019

Labor Day 2019 marked the 45th birthday of the individual retirement account (IRA). When the Employee Retirement Income Security Act was signed into law on September 2, 1974, it introduced bold steps to safeguard Americans’ employer-sponsored pensions and created the IRA.

Forty-five years later, IRAs are a significant component of US households’ retirement assets, holding $9.4 trillion in assets, or about one-third of the total US retirement market, at the end of March 2019…

Critics Claim Retirement Savers Aren’t Behaving Rationally. The Data Say They Are.

By Peter Brady

August 22, 2019

In a letter to MarketWatch responding to “Opinion: This Recent Report Suggests Steady Saving for Retirement Is Not Important,” published August 14, ICI Senior Economic Adviser Peter Brady refutes claims that criticize ICI’s recent retirement research, noting that more people benefit from employer plans than is commonly understood….

IRA Investors Are Concentrated in Lower-Cost Mutual Funds

By James Duvall

August 20, 2019

Individual retirement accounts (IRAs) represent the largest share of assets in the US retirement market, with assets totaling $8.7 trillion at year-end 2018. Forty-six percent of this total is held in mutual funds, with IRA mutual fund investors primarily invested in equity funds. As part of ICI’s ongoing efforts to shed light on important insights into IRA investing, ICI is updating its analysis of expense ratios that investors pay on mutual funds in their IRAs....

Mind the Gap

By Sarah Holden and Christina Kilroy

July 22, 2019

It’s a good idea to “mind the gap” if you’re traveling on the Tube in London, taking Amtrak in the United States, or riding Metro in Paris or Washington, DC. Being mindful of the space between where you are and where you’re going is important—not only when navigating public transit, but also when saving for retirement. Saving for retirement is a career-long process, with many decisions along the way....

2019 Investment Company Fact Book: Letter from the Chief Economist

By Sean Collins

May 7, 2019

Globalization has hit a few speed bumps in recent years, but it hasn't slowed the globalization of the Investment Company Fact Book. Consistent with ICI’s mission to represent the interests of regulated funds and their investors worldwide, Fact Book is expanding its international presence....

ICI’s Quarterly Retirement Market Resource

By Miriam Bridges

April 23, 2019

ICI publishes statistics on the US retirement market every quarter as an information resource for mutual funds, individual investors, the media, policymakers, and researchers. This report includes individual retirement account (IRA) and defined contribution (DC) plan assets, including 401(k) plans, and mutual fund assets held in retirement accounts....

Don’t Forget the 401(k): America’s Retirement System Helps Workers Save and Preserve Assets

By Paul Schott Stevens

February 26, 2019

In a letter to the Wall Street Journal responding to “Forget the 401(k),” published February 11, ICI President and CEO Paul Schott Stevens shows how the US retirement system actively engages employers to promote workers' retirement saving, noting that the current system also preserves choice and control of investments....

IRA: Will You Be Mine?

By Sarah Holden

February 12, 2019

As this Valentine’s Day approaches, step back and consider treating yourself or your spouse to an individual retirement account (IRA) contribution. Saving for retirement is an important household financial goal and contributing to an IRA is a good step toward providing for those later years....

Read more…

TOPICS: IRA Retirement Research

Growing Better with Age: The 401(k) Turns Forty

By Miriam Bridges and Christina Kilroy

November 30, 2018

This month marks the fortieth birthday of the most prevalent retirement plan available to workers today: the 401(k). It’s a milestone, to be sure, but there are no mid-life doldrums here—401(k) plans continue to grow, and currently hold $5.3 trillion in assets on behalf of more than 55 million active participants and millions of former employees and retirees.

28 Trillion Smart Decisions

By Christina Kilroy

October 22, 2018

Have you ever done one small, smart thing that ended up making a huge difference in your future? I’m not talking about blind luck—like buying a ticket that turns out to be the winner in the (currently) $1.6 billion Mega Millions. No, I’m talking about small, smart decisions that can materially affect us later in life....

IRA Investors Are Concentrated in Lower-Cost Mutual Funds

By James Duvall

August 8, 2018

Individual retirement accounts (IRAs) represent the largest share of assets in the US retirement market, with assets totaling $9.2 trillion at year-end 2017. Forty-seven percent of this total is held in mutual funds, with IRA mutual fund investors primarily invested in equity funds. As part of ICI’s ongoing efforts to shed light on important insights into IRA investing, ICI is offering an updated analysis of expense ratios that investors pay on mutual funds in their IRAs....

2018 Investment Company Fact Book: Letter from the Chief Economist

By Sean Collins

May 15, 2018

Those of us who wear glasses know that one of the most crucial elements in seeing the world is the right lens. A bad lens warps the light and distorts the signals; the right lens sharpens the image and enhances our understanding.

This is a useful metaphor for the work that ICI Research does in providing informed analysis to guide public policy. Through our voluminous collections and surveys, we gather large amounts of data—signals about the behavior of funds, markets, and investors. But finding the patterns in these signals requires the right lens—accumulated knowledge provided by context, economic insights, and understanding of institutions.

The Investment Company Fact Book is one very visible result of this process and its many elements...

A More Accurate Evaluation of Retirement Plan Participation

By Miriam Bridges

May 2, 2018

What’s the actual participation rate of Americans preparing for retirement through a workplace retirement plan? It’s an important question, and one that ICI economists Peter Brady and Steven Bass shed some light on in their new analysis of tax data, “Who Participates in Retirement Plans, 2014.”

The retirement plan participation rate—often used to evaluate the performance of the US voluntary employer plan system—understates the true scope and importance of these plans. In their careful analysis, Brady and Bass give two reasons for this understatement...

Invest in Your Future Through an IRA

By Christina Kilroy

March 13, 2018

Nearly 44 million US households invest and save for their future through individual retirement accounts (IRAs). If your household isn’t one, now is a great opportunity to join them. And if you are already saving in an IRA, there are some advantages that you may not be aware of—and that are worth knowing about as Tax Day approaches...

Americans: In Defined Contribution We Trust

By Sarah Holden

March 8, 2018

Millions of Americans personally direct their retirement investments in defined contribution (DC) plans, which account for nearly $8 trillion in savings. Because it is vitally important that regulators, policymakers, and employers understand the beliefs and behaviors of these investors, ICI asked Americans what they thought of DC retirement plan accounts, which include 401(k) and 403(b) accounts.

The results, which we summarized in “American Views on Defined Contribution Plan Saving, 2017,” were clear: whether they had DC accounts or not, Americans appreciate DC plan accounts and are confident that these plans can help people meet their retirement goals...

Fund Investors Will “Run”? Sorry, Charlie Brown

By Sean Collins and Sarah Holden

March 7, 2018

For decades, Charles Schulz kept us in suspense: surely this time, Lucy would let Charlie Brown kick the football. Nope. Every time, at the last second, she pulled the ball away—and Charlie Brown fell flat on his back.

We’ve seen the same gap between wish and fulfillment around market turmoil and mutual funds. For decades, commentators have predicted that investors in stock and bond funds, faced with market turmoil, would redeem en masse, perhaps adding to the market turmoil. Despite plenty of opportunities, that just hasn’t happened.

Stock market turmoil in February provides yet another example of this...

Let’s Give the US Retirement System the Credit It Deserves

By Sarah Holden

December 27, 2017

The Washington Post’s latest article on the future of retirement security (“‘I Hope I Can Quit Working in a Few Years’: A Preview of the US Without Pensions,” December 23) is not a preview but a retrospective look at some of the challenges that workers face in defined benefit (DB) pension plans even at “blue-chip” firms. As documented in the article, with traditional DB plans, workers often failed to get their full promised benefits, thanks to vesting rules, back-loaded benefit accrual, business failure, and labor mobility.

More People Are Building Nest Eggs with Their IRAs

By Sarah Holden

December 20, 2017

Individual retirement account (IRA) owners are good stewards of their money. They take a thoughtful approach to preparing for retirement by taking advantage of the dual role of IRAs and by researching important investment decisions, according to recent research from ICI. These are among the findings from “The Role of IRAs in US Households’ Saving for Retirement, 2017,” which details ICI’s research on IRA-owning households.

In Reality, Data Tell a Different Story of Old Age in America

By Sarah Holden

October 10, 2017

“The New Reality of Old Age in America” (September 30) portrays economic security in retirement by pairing anecdotes about workers who have fared poorly with selected statistics. Comprehensive data on how our system is working overall tell a far different story: America’s retirement system enables most of today’s retirees to maintain their standards of living.

It’s National 401(k) Day!

By Sarah Holden

September 8, 2017

ICI is marking National 401(k) Day by spotlighting the strengths of 401(k) plans and their role in the American retirement system, and by reminding workers to get the most of their own 401(k) plans.

Americans Trust in Their 401(k) Plans

By Sarah Holden

July 7, 2017

Defined contribution (DC) plans have long been a key component of Americans’ retirement savings. And with more than $5 trillion in assets and about 54 million active participants, 401(k) plans are the most common type.

2017 Investment Company Fact Book: Letter from the Chief Economist

By Brian Reid

April 27, 2017

Have you ever tried to put a jigsaw puzzle together without knowing what the finished work should look like? It’s difficult—even with help from family and friends. Are those blue pieces part of a peaceful lake or a cloudless sky? Are those dark pieces a forest floor or storm clouds brewing on the horizon? Without the completed picture on the puzzle box as a guide, everyone has their own idea of what the completed work will look like and how to put it together.

Scratch That: Why Arguments of a Broken Retirement System Are Misguided

By Peter J. Brady

April 6, 2017

What if you were given the task of designing a retirement system from scratch? In a recent paper, New York University law professor David Kamin proposes a retirement system that combines a mandatory savings floor with tax incentives to encourage savings above the mandated minimum. He is not the first to propose a new mandatory retirement plan, with others proposing that either employers be required to offer a plan or workers be required to contribute to a plan.

Exemptions from Investor Protections Put California Savers at Risk

By Paul Schott Stevens

March 22, 2017

The following ICI Viewpoints is a letter to the editor by Paul Schott Stevens, president and CEO of the Investment Company Institute, in response to an editorial published on March 8, 2017, in the Los Angeles Times.

ICI Study: 55 Million US Households Own Mutual Funds

By Sarah Holden

February 24, 2017

Gathering and analyzing data about how shareholders purchase and use mutual funds are critical to ICI’s work to facilitate sound, well-informed public policies affecting funds, their investors, and the retirement markets.

For “401(k) Pioneers,” No Reason for Regrets

By Paul Schott Stevens

January 10, 2017

The following ICI Viewpoints is a letter to the Wall Street Journal by Paul Schott Stevens, president and CEO of the Investment Company Institute, in response to an article published on January 3, 2017.

Dear Editor:

It may be, as you report, that “401(k) Pioneers Lament What They Started” (Page A1, Jan. 3). But the facts are clear: America’s retirement system is stronger today, in the expanding 401(k) era, than it was when defined benefit pensions were the primary vehicle for retirement savings.

Ten Years After the PPA, the Path to Retirement Saving Is Easier

By Sarah Holden and Elena Barone Chism

August 22, 2016

Ten years ago, on August 17, 2006, President George W. Bush signed the Pension Protection Act (PPA) into law, with the goal of ensuring greater retirement security for American workers. With regard to defined contribution (DC) plans, such as 401(k) plans, PPA further encouraged automatic enrollment while paving the way for diversified default investments and the creation of Roth accounts inside DC plans. PPA also made permanent previously legislated contribution-limit increases and the saver’s credit.

Getting Started in a 401(k) Plan—and Getting the Most Out of It

By Christina Kilroy

February 26, 2016

This week, ICI and the Investment Company Institute Education Foundation (ICIEF) joined thousands of corporations, nonprofits, and government agencies to celebrate America Saves Week.

How America Supports Retirement: The Incentive to Save Is Not Upside Down

By Peter J. Brady

February 25, 2016

In my new book, How America Supports Retirement: Challenging the Conventional Wisdom on Who Benefits, and the first three ICI Viewpoints in this series, I’ve demonstrated that Social Security’s benefit formula drives participation in tax-deferred employer-sponsored retirement plans ; that the full system of government support for retirement is progressive; and that those in higher tax brackets don’t enjoy greater “bang for their buck” from tax deferral.

How America Supports Retirement: What Do Tax Rates Have to Do with the Benefits of Tax Deferral? Less Than You Think

By Peter J. Brady

February 24, 2016

In my new book, How America Supports Retirement: Challenging the Conventional Wisdom on Who Benefits, I set out to gain a comprehensive view of how government policy supports American workers as they gather resources for retirement.

How America Supports Retirement: No, Benefits Are Not “Tilted” to the Higher Earners

By Peter J. Brady

February 23, 2016

Second in a series of ICI Viewpoints.

In my new book, How America Supports Retirement: Challenging the Conventional Wisdom on Who Benefits, I analyze the benefits individuals receive from the major government policies that help American workers accumulate resources for retirement: Social Security and tax deferral on compensation set aside for retirement in employer-based plans (both traditional pensions and defined contribution plans, such as 401(k) plans).

How America Supports Retirement: Tackling the Myths That Surround Us

By Peter J. Brady

February 22, 2016

America’s retirement system isn’t perfect but it’s a lot stronger than many people think. Whether by accident or design, the U.S. retirement system provides benefits to workers across the earnings distribution and has helped millions of retirees maintain their standard of living in retirement.

Correcting a Distorted Picture of Retirement Resources

By Peter Brady

October 21, 2015

Can 401(k) plans and individual retirement accounts (IRAs) provide the income that retirees need to supplement Social Security and enjoy a secure retirement?

Small Savers at a Loss

By Brian Reid and Sarah Holden

September 25, 2015

As ICI has pointed out before, the proposed rule from the Department of Labor (DOL) to redefine what counts as a fiduciary relationship in the retirement market is fundamentally flawed. But it is no less flawed than the DOL’s justification for it—a Regulatory Impact Analysis that fails to demonstrate a market failure that supports the need for such a sweeping and costly rule.

2015 Investment Company Fact Book: Letter from the Chief Economist

By Brian Reid

May 4, 2015

A version of this letter by ICI Chief Economist Brian Reid was released today in our 55th edition of the Investment Company Fact Book.

This year marks the 75th anniversary of the Investment Company Act and the Investment Advisers Act—the key statutes under which mutual funds, exchange-traded funds (ETFs), closed-end funds, and unit investment trusts are regulated and governed. In 1940—the same year that Congress enacted these laws—the fund industry formed the National Committee of Investment Companies, the trade group that became the Investment Company Institute (ICI).

Getting the Numbers Right on Investment Advice for Retirement Savers

By Brian Reid

February 26, 2015

As the Wall Street Journal noted this morning, ICI has deep concerns about the data used in a White House memorandum to support the Department of Labor’s push for tighter standards for financial advisers who help investors in employer plans—such as 401(k)s—and individual retirement accounts (IRAs).

What’s Driving Retirement Plan Access?

By Peter Brady

October 17, 2014

Most workers who are likely to have the ability to save and who are focused primarily on saving for retirement have access to an employer-sponsored retirement plan—and nearly all of these workers choose to participate.

Statement of the Investment Company Institute at Senate Finance Committee Hearing on “Retirement Savings 2.0: Updating Savings Policy for the Modern Economy”

By Brian Reid

September 16, 2014

This statement was given on behalf of ICI by Brian Reid, chief economist, at the Senate Finance Committee’s hearing on “Retirement Savings 2.0: Updating Savings Policy for the Modern Economy.” For more information, see ICI’s full written testimony.

Happy Birthday ERISA! Congratulations on 40 Years

By Sarah Holden and Elena Barone Chism

September 2, 2014

Today marks the 40th birthday of the Employee Retirement Income Security Act (ERISA). Signed into law on September 2, 1974, ERISA introduced bold steps to safeguard Americans’ employer-sponsored pensions and created the individual retirement account (IRA). Assets earmarked for retirement totaled $0.4 trillion at year-end 1974 (see the figure below). At this modest start, private-sector defined benefit (DB) plans accounted for 35 percent of the total; federal, state, and local plans for 34 percent; private-sector defined contribution (DC) plans for 17 percent; annuities for 13 percent; and there was a mere glimmer of IRA assets by year-end. Currently, total U.S. retirement assets are $23.0 trillion, and their composition has shifted considerably over the past 40 years.

Unconventional Wisdom on Retirement Preparedness

By Peter Brady

August 4, 2014

How well are Americans planning and saving for retirement? This is an important question to answer—but also vexingly difficult.

The Real Lessons to Be Learned from 1994’s Bond Market

By Brian Reid

July 29, 2014

A recent “Heard on the Street” column in the Wall Street Journal (“Heeding 1994's Bond-Market Lesson,” July 27, 2014) is correct in saying that there’s a lesson to be learned from the 1994 bond market—but it draws the wrong lesson.

Some Facts About Roth IRAs and the Investors Who Use Them

By Todd Bernhardt

July 17, 2014

Since the individual retirement account (IRA) was created as part of the Employee Retirement Income Security Act of 1974 (ERISA), it has become a resounding success, accounting for the largest pool of assets in the U.S. retirement market. By the end of 2013, Americans held $6.5 trillion in IRAs, with 45 percent of that total—$3.0 trillion—invested in mutual funds.

The Status of Global Retirement Savings: Taking Stock, Moving Forward

By Dan Waters

December 20, 2013

Around the world, as systems for building retirement resources come under increasing pressure, countries of every size and economic situation are facing long-term savings challenges. To meet these challenges, it is critical that pension industry experts, policymakers, and fund industry representatives learn from one another and share solutions that put the needs of savers first.

Yes, DC Follies Hurt Retirement Savers—But Let’s Not Overstate

By Brian Reid

October 10, 2013

“Debt ceiling follies” certainly do put retirement savers and their assets at risk. On that, ICI agrees with a recent Washington Post blog.

CAP Claims About the 401(k) System Are Misguided

By Paul Schott Stevens

September 4, 2013

The concerns of the Center for American Progress about the 401(k) system (covered August 20 in “A Better Way to Save for Retirement?”) are mistaken.

Featured Chart: 401(k) Participants Hold Lower-Cost Mutual Funds

By Sarah A. Holden

June 14, 2013

One key takeaway from ICI’s recent paper, The Economics of Providing 401(k) Plans: Services, Fees, and Expenses, 2012, is that 401(k) investors in mutual funds tend to hold lower-cost funds with below-average portfolio turnover.

Read more…

TOPICS: Retirement Research

Americans Support Their 401(k)s

By Mike McNamee

April 25, 2013

It’s pretty obvious to anyone who reads ICI Viewpoints that we believe 401(k) plans are a successful part of an overall retirement system that is working for working—and retired!—Americans. But we’re far from the only ones who think so. Surveys show that Americans share this confidence in the 401(k) and support the key features of 401(k)s and other defined contribution (DC) plans.

The Facts on Fees and 401(k)s

By Mike McNamee

April 23, 2013

Consistently falling prices in a marketplace are usually a sign of competition and innovation.

The Facts on Limited Access to Retirement Funds Before Retirement

By Mike McNamee

April 22, 2013

One of the many strengths of the 401(k) system is its flexibility. Policymakers have built into 401(k) plans a careful mix of incentives that help workers save and preserve their savings for retirement—while still allowing limited access to their funds, in case of need, through hardship withdrawals and loans.

401(k) Plans Work in a Balanced Approach to Retirement Security

By Mike McNamee

April 19, 2013

What’s the outlook for American workers looking forward to retirement?

No Accident: The Strengths of the 401(k) System

By Mike McNamee

April 18, 2013

Americans have saved $5.1 trillion dollars in 401(k) and other defined contribution (DC) retirement plans—plus another $5.4 in individual retirement accounts (IRAs) that are funded largely by assets rolled over from DC and other employer retirement plans.

IRA Rollovers Serve Investors Well

By David Abbey and Sarah Holden

April 12, 2013

The U.S. Department of Labor (DOL) is preparing to reintroduce its controversial proposal to revise the long-standing definition of “fiduciary” under the Employee Retirement Income Security Act (ERISA).

Extra, Extra, Read All About It: Americans Are Preparing for Retirement

Mike McNamee

February 20, 2013

Data and academic research overwhelmingly show that Americans are taking care to prepare for retirement.

Read more…

TOPICS: 401(k)Retirement Research

A Look at Traditional IRA Investors’ Withdrawal Activity

By Sarah A. Holden

July 31, 2012

When and how do households take withdrawals from their traditional individual retirement accounts (IRAs)? Shedding light on these questions is the goal of the latest installment of our IRA Investor Profile series, an ICI Research undertaking that analyzes account-level data of more than 7 million traditional IRAs.

Read more…

TOPICS: Retirement Research

Article in The Week Misrepresents Americans’ View of 401(k)s

By Sarah Holden

April 26, 2012

Contrary to recent reporting by The Week (“401(k)s Are Failing Millions of Americans,” April 22, 2012), American workers both value their 401(k) retirement savings plans and are confident that 401(k)s will help them meet their retirement goals.

Read more…

TOPICS: 401(k)Retirement Research

Featured Chart: Americans Say Retirement Saving Incentives Should Be a National Priority

By Sarah A. Holden

January 26, 2012

Stresses on the U.S. government budget have resulted in a reexamination of national priorities with respect to taxes and government spending. Against that backdrop, our survey of 3,000 U.S. households for our recent research report—America’s Commitment to Retirement Security: Investor Attitudes and Action—contained a new question. Households were asked: “Do you agree that continuing to provide incentives to encourage retirement saving should be a national priority?”

Read more…

TOPICS: Retirement Research

Deloitte/ICI Study Shows Retirement Plan Fees Driven Primarily by Plan Size, Asset Allocation

By Sarah Holden

November 16, 2011

According to a comprehensive new study, primary factors driving fees in 401(k) and other defined contribution retirement plans are the number of plan participants and average participant account balance, as well as the allocation of plan assets to equity investment options.

New York Times Editorial Misrepresents the Behavior of 401(k) Investors

By Brian Reid

August 23, 2011

Data Show Americans’ Commitment to Retirement Saving

By Sarah A. Holden

May 17, 2011

Despite the financial ups and downs of recent years, 401(k) participants have proven themselves both steady and committed to retirement saving.

ICI has a window into this commitment thanks to our surveys, conducted since 2008, of a cross section of recordkeeping firms representing a broad range of defined contribution (DC) plans and covering more than 23 million employer-based DC retirement plan participant accounts as of December 2010.

Read more…

TOPICS: Retirement Research

Who Gets Retirement Plans and Why

By Peter Brady and Michael Bogdan

March 25, 2011

Most workers who are likely to have the ability to save and to be focused primarily on saving for retirement have access to employer-provided retirement plans, according to research we just released.

Read more…

TOPICS: Retirement Research

Wall Street Journal Story Inaccurately Portrays the Role of 401(k) Plans

By Sarah A. Holden

February 24, 2011

The February 19 Wall Street Journal article, “Retiring Boomers Find 401(k) Plans Fall Short,” is based upon a narrow slice of statistics and anecdotes, painting an inaccurate portrait of the role of 401(k)s in retirement.

Read more…

TOPICS: 401(k)Retirement Research

Factors Behind Recent Growth in Retirement Assets

By Sarah A. Holden

February 17, 2011

Last month, we published The U.S. Retirement Market: Third Quarter 2010. The report showed that U.S. retirement assets rose nearly $1 trillion, or 6.1 percent, to $16.6 trillion in the third quarter of 2010.

Read more…

TOPICS: Retirement Research

New ICI Research Shows Americans’ Commitment to Retirement Security

By Sarah A. Holden

January 27, 2011

Following the start of the financial crisis, we began closely monitoring the behavior of investors in defined contribution retirement (DC) plans, as well as the views of U.S. households of those plans.

Read more…

TOPICS: Retirement Research

New ICI Report Shows the Key Role IRAs Play in U.S. Retirement Saving

By ICI Viewpoints

December 1, 2010

Americans are accumulating significant resources in individual retirement accounts (IRAs) largely through rollovers from employer-sponsored retirement plans, according to an ICI report published today.

Read more…

TOPICS: Retirement Research

EBRI/ICI: Average 401(k) Account Balance Among Consistent Participants Rose Nearly 32 Percent in 2009

By ICI Viewpoints

November 22, 2010

The average 401(k) retirement account rose 31.9 percent in 2009, according to a report released today by the Employee Benefit Research Institute (EBRI) and the ICI analyzing a group of consistent participants.

Read more…

TOPICS: 401(k)Retirement Research

New ICI Study Finds Private-Sector Retirement Plans Play Increasingly Important Role Across All Incomes

By ICI Viewpoints

November 18, 2010

Data in a new ICI study show that across all income groups, private-sector retirement income is more prevalent among retirees today than in the mid-1970s.

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TOPICS: Retirement Research