IRA and Keogh Assets Grew by 16 Percent During 1996
16 Pages Posted: 6 Sep 2015
Date Written: December 1, 1997
Abstract
Total assets held in individual retirement accounts (IRAs) and Keogh plans (retirement plans for the self-employed) reached a high of $1.4 trillion as of year-end 1996. Between 1985 and 1996, total assets held in IRAs and Keogh plans increased 524 percent. During 1996, IRA and Keogh assets grew 15.7 percent, compared with a growth rate of 24.7 percent between 1994 and 1995, 9 percent between 1993 and 1994, and an average annual growth rate of 18.2 percent between 1985 and 1996. Most of the recent growth was due to rollovers from qualified retirement plans, not from new contributions to the accounts. In addition, recent evidence suggests that distributions are increasingly more likely to be rolled over into another qualified retirement vehicle than they were in the past.
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