Contributions appear to be the leading funding source for Roth individual retirement accounts, according to a new Investment Company Institute report.

In 2012, more than seven in 10 new Roth IRAs were opened exclusively with contributions — in sharp contrast to traditional IRAs, which largely are created through rollovers from employer-sponsored retirement plans. 

The report, "The IRA Investor Profile: Roth IRA Investors' Activity, 2007–2012," released Monday, examines a slew of variables on Roth IRAs, including contributions, tax rule changes, withdrawals, investor age and equity holdings. The report is based on the IRA Investor Database, a joint project by ICI and the Securities Industry and Financial Markets Association, and it looks at two populations of Roth IRA investors: 2.5 million "consistent" Roth IRA investors, who had accounts in every year between 2007 and 2012; and a snapshot of 5.1 million Roth IRA investors at year-end 2012.

Continue Reading for Free

Register and gain access to:

  • Breaking credit union news and analysis, on-site and via our newsletters and custom alerts.
  • Weekly Shared Accounts podcast featuring exclusive interviews with industry leaders.
  • Educational webcasts, white papers, and ebooks from industry thought leaders.
  • Critical coverage of the commercial real estate and financial advisory markets on our other ALM sites, GlobeSt.com and ThinkAdvisor.com.
NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.

Emily Zulz

Emily joined the ThinkAdvisor team as a reporter in the summer of 2014. She previously worked as a reporter for The Daily Journal in Kankakee, Illinois for a year and as a reporter and editor for The Daily Eastern News in Charleston, Illinois for two and a half years. Prior to joining ThinkAdvisor, Emily worked on Groupon’s editorial team in Chicago as a fact checker for three years. She graduated cum laude with a BA in journalism from Eastern Illinois University, and she has been the recipient of two journalism awards for her news reporting at daily newspapers.