May 2014, Boston. Individual retirement account (IRA) rollover contributions in the U.S. increased 7.3% and surpassed the $300 billion mark with $321.3 billion in assets, according to global analytics firm Cerulli Associates.
"A large portion of the contributions roll over from defined contribution plans," states Bing Waldert, director at Cerulli. "We anticipate IRA rollover contributions will continue to grow."
In their Retirement Markets 2013: Data & Dynamics of Employer-Sponsored Plans report, Cerulli examines the size and segmentation of public and private U.S. retirement markets, including defined benefit (DB), DC, and IRA. The report is the eleventh in an annual series.
"Participants do not necessarily roll over their assets immediately after leaving their employer. Some take action months or even years after their departure," Waldert explains.
Cerulli advises plan providers to inform participants that IRA accounts are available so assets don't leave the provider if the participant decides to roll over. Immediately connecting with separated participants is essential in capturing assets.