Ira and 401(K)-Type Plan Ownership

Abstract

This paper examines the extent of Individual Retirement Account (IRA) and 401(k)-type ownership by all Americans ages 21-64, regardless of work status, from November 1998 to February 1999, using the 1996 Survey of Income and Program Participation (SIPP) data. It includes average account balances for these plans and statistics on the number of years participants contributed to them. Finally, it breaks down ownership and balances into groups of those owning only an IRA, only a 401(k)-type plan, or both. The major findings include that 15.4 percent of Americans ages 21-64 owned an IRA in early 1999, with an average balance of $33,089. By comparison, 22.2 percent owned a 401(k)-type plan, with an average balance of $53,608. The median balance for IRAs was $12,000, and for 401(k)-type plans it was $15,000.

Note: The PDF for the above title also contains the full text of another June 2002 EBRI Notes article abstracted on SSRN: "Disability Income: Voluntary Employment-Based Plans."

Keywords: Employment-based benefits, 401(k) plans, Individual retirement accounts (IRAs)

JEL Classification: G23