As of the end of 2025, IRAs held approximately $19.2 trillion compared to $10.1 trillion in 401(k) plans, according to the Investment Company Institute. Despite this large asset base, direct contributions to IRAs are minimal, with only $89 billion contributed in 2023, while rollovers from 401(k)s accounted for $682 billion.
This trend is largely driven by demographic shifts, particularly as baby boomers retire at a rate of over 11,000 per day. Experts indicate that rollover decisions are critical financial choices for many households, with projections suggesting that rollover amounts will reach $941 billion in 2026 and $1.3 trillion by 2031.
However, financial advisors caution that rollovers may not always be the best option, as 401(k) plans often provide better investment access and legal protections. The recent defeat of a Biden-era investor protection rule in court may further influence rollover trends, raising concerns about the potential for misguidance by financial salespeople.
Overall, while IRAs are growing in asset size, the reliance on rollovers rather than direct contributions reflects changing retirement saving behaviors and the complexities involved in managing retirement funds