Individual retirement accounts have become a cornerstone of American retirement planning, with total assets reaching $18.0 trillion by mid-2025, according to new research from the Investment Company Institute. Nearly 60 million U.S. households now hold IRAs, representing 44% of all households, up from 24% two decades ago.
IRAs now account for 39% of the total U.S. retirement market, a significant increase from 19% three decades earlier. As a share of household financial assets, IRAs have climbed to 13%, compared with just 5% thirty years ago. Traditional IRAs remain the most common type, held by 32.6% of households (43.9 million), while Roth IRAs are owned by 27.8% (37.5 million households).
When combined with employer-sponsored retirement plans, nearly three-quarters of U.S. households—approximately 100 million—hold some form of tax-advantaged retirement savings. Among households approaching retirement (those aged 55 to 64 and working or with a working spouse), that figure rises to 86%.
Rollovers Drive Traditional IRA Growth
Rollovers from employer-sponsored plans remain the primary growth driver for traditional IRAs. In mid-2025, 61% of traditional IRA-owning households (about 27 million) held accounts containing rollover assets. Of those, 86% transferred their entire retirement plan balance in their most recent rollover, and the median share of the traditional IRA balance attributable to rollovers stood at 80%.
The most recent IRS data show households transferred $670 billion from employer-sponsored retirement plans to traditional IRAs in 2022 alone. Median traditional IRA holdings that include rollovers were $200,000 in mid-2025, more than three times the $62,500 median for balances funded solely through individual contributions.
When asked why they rolled assets into IRAs, 63% cited consolidation as a motivator, while 62% did not want assets left behind at a former employer. More than half wanted to preserve tax treatment, and 56% cited broader investment options. Professional financial advisors were the most consulted source for rollover decisions, relied upon by 64% of traditional IRA owners with rollovers and identified as the primary information source by 52%.
Contribution Activity Remains Limited
Despite a modest upward trend, IRA contribution rates remain low. In tax year 2024, 17% of all U.S. households contributed to a traditional or Roth IRA, up from 16% the prior year and 11% in tax year 2017. Among households that already owned IRAs, the contribution rate was higher at 38%, compared with 37% in tax year 2023.
Roth IRA owners were more active contributors, with 42% making contributions in tax year 2024, versus 23% of traditional IRA owners. Median contributions were $6,000 to Roth IRAs and $5,000 to traditional IRAs. Among non-contributing traditional IRA owners, 40% said they were retired and no longer saving, while about one-fifth lacked funds, and one-quarter could not meet eligibility requirements.
Withdrawals Mostly Retirement-Driven
A third of traditional IRA-owning households took withdrawals in tax year 2024, consistent with prior years. Among those, 88% were retired. Only 8% of traditional IRA owners under age 59 took withdrawals. Required minimum distributions governed withdrawal calculations for 70% of those who took money out, while 14% took lump sums. Roth IRA owners withdrew at far lower rates, with only 6% taking distributions in tax year 2024, reflecting that Roth accounts are not subject to RMDs during the owner's lifetime.
Looking ahead, 72% of traditional IRA owners and 65% of Roth IRA owners said they had a strategy for managing income and assets in retirement. Among those with a strategy, 77% worked with a professional financial advisor. Common strategy elements included reviewing asset allocation (72%), determining retirement expenses (68%), developing a retirement income plan (66%), and deciding when to claim Social Security benefits (56%). Advisors may find parallels in Vanguard Research: Retirees Need Income Strategy, Not Just Savings Target and JPMorgan Strategist Urges Advisors to Separate Math from Emotion in Retirement Plans.
