Rollovers into IRAs
Rollovers into IRAs are important for all involved
parties - the individual, the IRA custodian/trustee and
the 401(k) plans. Rollovers are a tax subject and so
certain rules must be met or the expected/desired tax
benefits will not be realized. Rollover situations
require the individual to make tax and financial planning
decisions.
4.9 million taxpayers made a rollover contribution to
one or more of the four types of IRAs.
- 4.5 million made a rollover contribution to a traditional
IRA.
- 341,629 made a rollover contribution to a Roth IRA.
- 51,668 made a rollover contribution to a SEP-IRA.
- 6,647 made a rollover contribution to a SIMPLE IRA.
- 434.8 billion dollars were rolled over into one of the
four types of IRAs .
-
423.9 billion dollars were rolled over into a traditional
IRA or $91,489 per person.
- 6.7 billion dollars were rolled over into Roth IRAs or
$19,567 per person
- 4.8 billion dollars were rolled over into SEP-IRAs or
$93,232 per person.
- .4 billion dollars were rolled over into SIMPLE-IRAS
or $58,195 per person
Rollover Chart summary:
Size of AGI |
Number of Taxpayers |
Rollover Amount |
Average |
No MAGI |
41,067 |
$2,788,340,000 |
$67,897 |
$1 - $19,999 |
382,977 |
$15,803,165,000 |
$41,264 |
$20,000 - $29,000 |
279,289 |
$10,860,978,000 |
$38,888 |
$30,000 - $39,000 |
282,980 |
$11,251,524,000 |
$39,761 |
$40,000 - $49,000 |
292,484 |
$11,809,385,000 |
$40,376 |
$50,000 - $74,000 |
732,203 |
$43,073,467,000 |
$58,827 |
$75,000 - $99,000 |
728,878 |
$54,396,582,000 |
$74,631 |
$100 M - $199,000 |
1,408,048 |
$144,447,514,000 |
$102,487 |
$200 M - $499,000 |
585,931 |
$100,812,445,000 |
$172,055 |
$500 M - $999,999 |
92,157 |
$23,904,227,000 |
$259,386 |
$1,000,000 or more |
45,178 |
$15,666,997,000 |
$346,784 |
Totals |
4,871,192 |
$434,814,624,000 |
$89,262 |
CWF Observations
-
Rollovers of $424 billion were made in 2014 into
traditional IRAs.
- 4.9 million taxpayers made a rollover.
- The average rollover of all taxpayers was $89,262.
- The average rollover of taxpayers with MAGI of
less than $40,000 was $40,174, but those taxpayers
with no MAGI were excluded.
- Taxpayers with MAGI between $100,000 -
$200,000 rolled over $144 billion or an average
of $102,587.
- Taxpayers with MAGI above $200,000 had
rollovers averaging $194,097.
- Taxpayers with MAGI exceeding $1,000,000 had
rollovers averaging $346,784.
Annual IRA Contributions for 2014 - Traditional,
SEP, SIMPLE, and Roth
-
155.5 million individuals were eligible to make one
or more of the four types of IRA contributions
(155,481,151).
-
12.8 million taxpayers made/received one or more
of the contribution types.
-
6.3 million made a Roth IRA contribution.
-
4.3 million made a Traditional IRA contribution.
-
1.7 million made a SIMPLE IRA contribution.
-
1.1 million made a SEP-IRA contribution.
-
62.7 billion ($62,745,693,000) was contributed to
IRAs in 2014.
-
21.9 billion to Roth IRAs ($21,868,086,000) or
$3,470 per person.
-
17.5 billion contributed to Traditional IRAs
($17,515,419,000) or $4,073 per person.
-
14.6 billion contributed to SEP-IRAs
($14,566,424,000) or $13,349 per person.
-
8.8 billion contributed to SIMPLE IRAs
($8,800,764,000) or $8,065 per person.
CWF Observations
-
Roth IRAs lead - largest number of contributor
and largest amount contributed. Traditional IRAs
are second both in number and contributions and
by amount.
-
SEP-IRAs have the fewest number of contributors,
but the amount of contributions of 14.6 billion is
a close third to the 17.5 billion being contributed
to SIMPLE IRAs.
-
IRAs are being under-used. Annual IRA contributions
are being made only 8.3% (12.8 million out
of 155.5 million taxpayers) who are eligibles to
make an IRA contribution. People are missing
opportunities to make IRA contributions. Higherincome
individuals need to be informed why it is
in their best interest to make non-deductible traditional
IRA contributions and why it is well worth
their time and effort to do so.
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