<P><STRONG><EM>IRAs:</EM></STRONG> Withdrawals from individual retirement accounts (IRAs) tend to be small and closely follow the rates dictated by the federal required minimum distribution (RMD) rules that apply to individuals age 70-1/2 or older, according to a new study by EBRI. <A href="http://www.ebri.org/pdf/PR1061.IRAs.11Feb14.pdf ">Press release.</A> </P> <P><STRONG><EM>Health Accounts:</EM></STRONG> Nearly three-quarters of workers (71 percent) with a health reimbursement arrangement (HRA) or health savings account (HSA) reported that their employers contributed to the account in 2013, according to a new report by EBRI. <A href="http://www.ebri.org/pdf/PR1062.HSAs.12Feb14.pdf ">Press release.</A> </P>
IRA Withdrawals, 2011
- The EBRI IRA Database, an ongoing project that collects data from IRA plan administrators, contains information for 2011 on 20.5 million accounts with total assets of $1.456 trillion. In this study, only withdrawals from the accounts identified as traditional or Roth IRAs in the database are examined, a total of 15.3 million accounts with $1.11 trillion in assets.
- Just over 16 percent of traditional and Roth IRA accounts had a withdrawal in 2011, including 20.5 percent of traditional accounts. This percentage was largely driven by activity among traditional IRAs owned by individuals ages 70-½ or older where the individuals were required to make withdrawals from their tax-qualified accounts.
- Looking at accounts that have both a withdrawal and a rollover, there appeared to be some movement of dollars consistent with a desire to take advantage of differing tax rules between IRAs and employment-based retirement plans; nearly a third (29.5 percent) of those having both a rollover and a withdrawal took a withdrawal at least equal to that of the rollover.
- While the median withdrawal rates suggest that many individuals are highly likely to maintain the IRA as a source of income throughout retirement, further study is needed to see if these individuals are keeping their withdrawal rates at these levels as they get older.
Employer and Worker Contributions to Health Reimbursement Arrangements and Health Savings Accounts, 2006–2013
- This report presents findings from the 2013 EBRI/Greenwald & Associates Consumer Engagement in Health Care Survey (CEHCS), as well as earlier surveys, examining the availability of health reimbursement arrangements (HRAs) and health-savings-account (HSA)-eligible plans (consumer-driven health plans, or CDHPs). It also looks at employer and individual contribution behavior.
- The percentage of workers reporting that their employers contribute to the account increased. Among individuals with employer contributions, the percentage with contributions between $200–$499 and $750–$999 increased while contributions of $1,000 or more fell in 2013.
- Workers with employee-only coverage dropped their contributions, but those with family coverage kept their contribution levels steady.
FiF Figure gur igur e e 31 5 Distribution of the Accounts With Average Withdrawal AmWithdr ounts f aw rom als fr Indi om Tr vidua aditional and l Distribution of Withdrawal Rates for Those Taking a Withdrawal from Individual 8 Figure Figure Figure Figure Figure Figure Figure 31 7 7 9 5 1 1 Demographics Endnotes Among Account It roughly Withdrawals in the datab was foun worker $1, balan 50 d t0 ce hat s hi with did gh indivi er not family of tha duals have a Those n se c the for 2011 amou o with a verage, aver co s nsistent Taking oage me empl en am gagem impact nted to $40.3 billion oyer ount Withdrawals contri from etr nt end wit buti trad o h n on th itional the e leve . health percenta ls IRAs. we cre are Consequently ge mostly system that h unch ad contribut a , athere nge rollover d e betw w d e hi an re gh een d some er a withdr amounts 20very 10 an awal large d to 2 in 0their 1 the 3. Employer and Worker Contributions to Health IRA Withdrawals, 2011 Roth Indiv Retireim dual Retirement Account ent Accounts, by Varis, by ous C Various Characteristics, 2011 hara a cteristics, 2011 Retirement Accounts, by Various Characteristics, 2011 Median Ratio of the IRA Withdrawal Amount to IRA Rollover Amount for Percentage AAnnual Individual Contributions to the A A A nn n n nn n n uu u u al Employ of Indiv al Indiv al Indiv al Indiv iduals iiidual Contributions dual Contributions dual Contributions er Contributions With Traditional to to to to the the the the Employ AAccount, A A A ccou cco cco cco me n un un un t, nt- t, t, t, Based 1 HSA The same withdr per than year. awal centa thos a Ho m ge e wever, ounts w reiportin th relativ no for g eacc neg e m ageme o to ployer unts the nt. wit m co e h In ntri dia bal 2n butions 013, ances with 1 dra 7 of o perce fw less $1, al. 000 The n th t an wit or medians $10, hmor no00 e en 0, was g of ageme the the 59 perce w perce nt ithdr w ntag in th at win e the al of 20 amo h accounts 13 ealth unts (Fig car ure gene e with 4). system rally a rollov followed er that See Figure A i n Craig Copeland, “Individual Retirement Account Balances, Contributions, and Rollovers, 2011: The EBRI While almost three-fourths of the accounts examined in the EBRI IRA Database were traditional IRAs, over 90 percent b a c a a a a 9 Those Traditional IRAs Having Both, All Wby ith Age and Traditional AccounW t Balance, ith 2011 Roth With Reimbursement Arrangements and Health Savings Aamong among among ll among W Health Benefits Offered HDHP ithamong People W WiPeople With Employ People With Employ tPeople With Employ hdraw People With Employ al All Withith Employee-Only CDHP T ee- ee- ee- radit ee- O O T O ional rO nl nl a nl d nl or CDHP y y y it io W y or or CDHP n iCDHP ta hFamily Family l W Wit ithdraw ,, h, 2006–2013 2006-2013 2006–2013 CDHP CDHP al and Roand and th With Roth With Withdrawal By The withdraw Craig Copelal rate in this study is calculated by (wit and, Ph.D., Employee Benefit Research hdrawal amo Institute unt)/(year-end account balance + withdrawal amount) 4 contribut also the same had e a patt d wit noerns hthing draw as al (Fi th was ge ure av l o erages 11), wer w th hile an relativ tonl hae ty among to 9 perc the ent alar ge gwi o efr th the accounts, some account enga while owners gement the perc acontri nd e the nbute tage account d of not these hin bala g low (Figure nces. -balance 12). In IRA Database™,” EBRI Issue Brief, no. 386 (Employee Benefit Research Institute, May 2013). of the accounts with a withdrawal were in that category (Figure 1), while only 6.4 percent of the accounts with a 1.00 All Withdrawal Withdrawal Withdrawal February 2014 • Vol. 35, No. 2 25th Prctl. Median Household Account for Less than 5 No Health Engagement, 75t W h ith P Income dr rctaw l. al W 25tUnder $50,000, 2006–2013 h Prctl. Years, 2010–2013 iM t2009–2013 hd edian rawal 75th Prc W tl. ithdr 25t awa h Prlctl. Median 75th Prctl. 40% 50% 2006 2007 2008 2009 2010 2011 2012 2013 and is presented in percentage terms. Accounts, 2006–2013 All 100.0% 100.0% 100.0% 100.0% accounts contrast, 32 with percent withdr All awals of those that with also no ha engagement d a ro$16 llover ,374 was with hi th gher e health than $16 care am ,474 ong system larger contri acco bute $14 unts. ,920 d $1,500 or more, compared All 4.4% 7.4% 28.2% 4.4% 6.9% 91.7% 24.0% 13.7% 40.0% 74.1% withdrawal 60 50 35 % % % were Roth IRAs. Furthermore, 65.1 percent of the accounts with a withdrawal were owned by those ages Individual Contributions 2 45% 2006 2007 2008 2009 2010 2011 2012 2013 Where the world turns for the facts on U.S. employee benefits. 2006 2007 2008 2009 2010 2011 2012 2013 See Copeland Type (May 2013, Endnote 1) for results from the database for 2011 on balances, rollovers, and contributions. 0.90 Age Age with 53 percent of those with some engagement with the health care system. 10 45% 60 or older and 43.8 percent by those ages 70 or older, while just 10 percent were owned by those ages 25–44. For By Paul Fronstin, Ph.D., Employee Benefit Research Institute Withdraw In this study, al 991,000 traditional IRA accounts had Rates of Those Taking a a rollover, 2,301,000 accounts Withdrawal had a withdrawal, and 217,000 35% Data Security Individuals’ Traditional contributions to HSAs had 73.6 been increasing unt 93.6 il 2011, but have sinc 100.0 e been decreasing. 0Bet .0 ween 2006 and The magnitude of Les the swit t 40% han hdrawals 25 relative to the 6,74rollove 5 rs can provide 7,917 evidence of the 3, motivatio 715 n behind the 2006 2007 2008 2009 2010 2011 2012 2013 Les Also, see Craig s t han 25 45% Copeland, “Asset Allocation, 1.7 11.5 2011,” 53.8 EBRI No1. tes 7, no. 10 (Employee Benefit Research Inst 6.0 44.6 9.8 itute, October 40.6 2013): 77.1 39% 39% 2010 2011 2012 2013 39% 40% traditional IRAs with a withdrawal, 38% the age distri 20 bution 09 20 fo 10llowe 2011d th 20 e 12 overall 2013 age distribution, with 67.2 percent owned accounts had b Roth oth a rollover a 25–44 nd a withdraw 26.4 al in 2011. 12,445 6.4 13,788 0.0 7,171 100.0 30% 25–44 Another 2011, the mperc easure entage of th 11. of e 9 wit indi hviduals draw 43. als 3with take e n m is ployee 79. to 5conside -only r coverage 9. wh 5 at percent cont 40.ributin age 6 (or g rate) nothin 78.4 th g e to with an 21. drawal HSA 6 decreased for t 50. hose 3 from taking 81. a 9 40 0.80 % 37% 37% 37% 41% The withdr Retirement Employe awal. The e Ben median and health benefits are at the heart of w efit Resea ratio rch of Institut the with e’s drawal (EBRI’s amount ) retirement relative databas to the orker e rollover s (th s’, emplo e EB in RI/I trad CI y itional ePartici rs’, and our nation’s IRAs pantwith -Directed both activities pp. 8–22 for asset allocation in IRAs. 50% 48% Age 45–54 16,929 17,503 11,8942 by those ages 60 or older and 45.9 percent owned by those ages35% 70 35% or older. In contrast, for Roth IRAs, 50 percent 45–54 5.9 TM 25.0 61.4 5.5 22.8 58.8 16.3 45.3 TM 77.6 Conc lusio 40% n 30% 34% 34% withdr IRA Withdrawals, 2011, 28 percent economic security awal to represents, 11 percent as (Figur a . Fo fraction unded in 1978, EBRI is e 5). of At th the e year same p. 2 -en time, d ac count the percentage the most authoritative and objective source of balance plus contributing the withdrawal. $1,500 or The mor me edian increas with ed dra from wal Introduction Retireme is 51.6 perce nt 35%Pn lan t (Figure Database, 7). This the median EBRI IRA ratio Database, declined a fo nrd thos the e EBRI accoIun nte tsgrat owne ed d Defi by ned thosContri e under buti ag on/IRA 38% e 50 (6 Data 0.7 base per- ) 11 33% 33% 55–59 18,085 18,356 14,859 Less than 25 1.0 0.4 0.3 1.6 Established in 1978, the Employee Benefit This means that about 6.5 percent of the accounts with a rollover had a withdrawal of at least the amount of the rollover. 55–59 3 35% 4.7 14.1 48.3 4.6 12.532% 45.3 32% 13.5 39.7 73.1 of the accou 0.70nts with a withdrawal were owned by 25–54-year-olds. Below is a comparison of the EBRI IRA Database with numbers from the Internal Revenue Service (IRS) and the Fed 31% eral rate 21 Theperce information on these critical, complex issues. share for those nt oin f t2 he taking 00a 6d to ult a44 po withdrawal pe pulrcen ation t in w from ith 2011. priv tra Mor d ate itional e h e rec alth IRAs ently, inswa urance bet s 6. ween 9 enrol perce 20le 1n 1 dt, a in compar n d an2 0 HSA-el 13 ed th with e igible percentag 40. plan 0 perc con e of ent tinues infor divid those touals gro t w a. king have cent) bee untin 25 l25–44 th % the e account subject 60–64 o own f mu er ltiple reach ine de d 25.2 pen age d69 ent 22 (39.5 security ,477 perc audits ent), 10.0 wh and en 22 ha ,it 7ve 75 increased been certi 8.5 agfai ien d 18 for to, 5 be those 39fully acompliant g31.5 es 70 or ol wit der h the Employers have been interested in bringing aspects of consumerism into health plans for many years. As far back as 60–64 35% 5.2 13.8 41.4 5.0 12.7 38.3 13.7 38.0 70.0 29% 29% 30% 60.7% Research Institute (EBRI) is the only 28% 28% 28% 33% Reserve’s Flow of Funds report. 45–54 65–69 22.7 21,746 11.7 21,663 11.3 23,196 39% 18.5 12 25% a reporting The witper hdra centa w that al ge from they of Roth workers contribute IRAs re(Figure portin d nothin g 5). tg hat to Th tth heir e eir median employer HSA increase with s drawal contribut d fro rates me 11 to were percent the account much to 19 hi igh npercent, creased er for youn in and 2013. ger the opercentage w Ho ne wever, rs of ISO-2 (44. 3 7 perc 002 40% ent). Information Accounts Se wit cuh rity less Audit tha n stan $10,00 dard. 0 Moreove had a me r, dian EBRI ratio has of obtained 91.7 percent, a legal while opinion 27% those that wi th th e ba met lances hodolo ofg y Employer and Worker 30% Contributions to Health 65–69 197 See Craig Co 8, they adopted peland, “Lump-Sum Distributions Sec. 4.8 125 cafe 10. teria 1 plans 28. and at Job Chan 2 flexible 4. spen ge, Distribution 7 ding acc 9.5 ounts. s Through More 26.2 201 recently, 2,” EBRI Notes, 11. em 0ployers no. 11 (Employee have 30.5 61.3 0.60 Just over 50 percent of the traditional accounts with a withdrawal had an account balance of $50,000 or more, 26% 70–74 13,914 55.4% 13,694 22,282 55–59 12.2 6.9 6.8 8.3 EBRI focuses solely on employee benefits research — no lobbying or advocacy. EBRI Employee Benefit Research Institute Notes (ISSN 1085 ?4452) is published monthly by the Employee 29% Benefit Research 70–74 traditional reporting among th 30 ose that % IRAwith s they , wher employ cont 3. e 9th ributed e ermedian contributions, $1, 4.3 500 withdr or awal more overall 8.8rfe ate ll contributi fr for om owne 3. 44 9 5 on percent rs leve ages ls to 4. 25–44 f3 o32 r individu perc was ent 8. 40.6 als 3 . wi perc th employ ent. 7.7Th ee e -only median 22. cove 7 withdr rage awal fe 51. ll 8 35% used $10,00 m0 eets or m th oe re pr ha ivacy independent nonpr d a rati stan odards of no o hi f gh the erGramm-Leach than ofit, nonpartisan 42.3 per-c Bent. liley Act. At no time has any nonpublic, personal information increasin Benefit Research Institute, November 2013) gly 25%turned 51.6% their attention to 52.0% consu : pp. 2–13 for uses of withdrawals at jo mer engagement in health care. In 2 b change by workers 001, they introduce from employment- d account-based 20% 7th 5–84 12,660 12,513 21,413 34% inclu Reimbursement Arrangements and Health Savings ding 1 60–64 6.3 percent with a balance11.7 of $250,000 or more. 10.8 Among Roth accounts, 10.8 53.9 percent o11.9 f the accounts had Institute, 1100 13 St. NW, Suite 878, Washington, DC 20005-4051, at $300 per year or is included as part of a membership 25%EBRI stands alone in employee benefits research as an independent, nonprofit, and nonpartisan 75–84 4.7 5.5 EBRI IRA 7.6 4.7 EBRI IRA 5.4 Internal Revenue 7.4 6.7 Flow of 19. 32% Fu 8 nds 51.2 20 0.50 % rate in 20decreased 13. for each older age group through ages 70–74, reaching 4.3 percent (except for a slight increase for that is personally i8dentifi 5 or olabl dere, such as Social Securi 11,891 ty number s, been 11,7 transferre 65 d to or 22 shared ,887 with EBRI. None of the based retirement plans to see 65–69 what some of the withdrawal 9.1 uses might be 10.4 for those not yet retired. Also, see Sudipto 10.5 8.8 health plans—a combination of health plans with deductibles of at least $1,000 for employee-only coverage and tax- subscription. Periodicals postage rate paid in Washingt on, DC, and additional mailing offices. POSTMASTER: Send address balances of less than $10,000. Similar percentages of Roth and traditional accounts with a withdrawal were owned by organization committed exclusively to data 44.3% organization. It analyzes and reports research data without spin or underlying agenda. All findings, 85 or older 25% 6.7 7.6 9.6 6.7 7.6 9.6 6.6 17.3 53.4 Accounts, 2006–2013, Since these median ratios are relatively high, p. 15 Figure 8 goes one step further to show the percentage of these Among those 30 20 % % with family coverage, th contri Database 20 bution leve 10 ls were Database 20 generally uncha 11 nge Service 2008 D d in 42.3% 2013, a altho ta ugh 2011 Data there appe ars to Unknown 24,064 23,426 33,649 owners ag70–74 es 60 to 64). There was a sli 5.6 ght uptake in the me 17.9 dian rate for the two 18.6oldest age groups, 7.1 where it hit changes to: EBRI Notes, 1100 13 St. NW, Suite 878, Washington, DC 20005-4051. Copyright 2014 by Employee Benefit Ban three erjee, “IRA With databases allows drawals: H identification ow Much of , Wh anen y indiv , and Oth iduals er oSavin r plan g s Beh spona sors. vior,” EBRI Notes, no. 5 (Employee Benefit Research preferred 20 savi % ngs or spending accounts that work 39.5% ers and their families can use to pay their out-of-pocket health care Unk males, nown with wheth 50.3 percent er on fi 3.8 for nan traditional cial 6. data, 1 an option d 45. 15.s 9 0 , or tre percent nds, 3. fo 8r are reve Roth 21% (57. 5. aling 98 perc anent d reli 14. and able 0 58.6 — the re perc 7.1ent, aso re n spectively, EBRI informatio 25.6 for 67.8 n is 15% 0.40 Account Balance Workers be accounts a Research long with er with 75–84 -te Institute. employee rboth m tren a All wit d rights to -only hwa dra reserved, rd w coverag al high aner d Vol. e a 5.5 cont dro rol 35, lppe ributions o no. ver d 2. wh their ere . Th con th e e tperce ri 21.4 withdra bution ntage lev wal e no ls ist , at but making least thos 22.5 100 any e wit percent contributio h family of cover the ns f5rollover ea .5 ll ge from kept amou 1 4 pent. rcent dissemination, research, and education on 15% 19% 7.6 percent for those owner 19% s ages 85 or older. Institute, May 2012): pp. 9–16, for uses of IRA withdrawals by those around retirement age. 20% Account exp e Bnses. alanc 15 eEm %the ployers gold sta first ndard started for opriva fferintg e account- analysts a based nd 18%de he cisi alth on plans make in rs, 2001, gove w rhen nme they nt policy bega m n ake to offer rs, the media, and health Total Assets $1.002 trillion $1.456 trillion $3.7 trillion $4.9 trillion 11 those accounts owne Lesd s tby han th$ose 10,0with 00 a known 1gen 1,37d 6er). 11,358 11,466 85 or older 1.2 4.6 4.8 0.8 31.5% Almost 30 percent of these accounts had a wit 17% hdrawal amount equal to or greater 17% than the rollover. This contributio in 2007 to 15 n 6 % lpercent evels relativ in 20 e13 ly steady. (Figure Both 6). At lo the wer- same and hig timher-i e 17% , the ncome percent individuals age contributi lowered ng $1,5 their0 0 contr or more ibutions incr in ease 20d 13, from Less than $10,000 20.8 61.1 92.5 13.7 59.0 92.9 42.8 68.5 90.9 the 16% publi $10 economic security and employee benefits c ,000 . –$24,999 16% 8,270 8,034 . 10,799 reimbursem 0.30ent arrangements (HRAs) (Fronstin 2002). In 2004, health plans with health savings accounts (HSAs) Unknown 15% 5.9 6.0 6.0 5.8 15%19% 20% 13 18% 25.9% The perce and 50 perc lower median ntage ent 10 -inc % to w withdra ome a57 s lower perc inw dividual ent. al for rates th s oswere among e accounts less Roth likely owne IRA A T to own d co by ntribu ein rs di st A vidu te eaanythi dily als G L A N C declin und ng er th eage d an for hi 70, ghe eac E an r-i h d suc nco foc r m essive accounts e individuals older froage m . $1 grou 0,000 p for up to $10, As mentioned in endnote 6, individuals 000–$24, 15 10 999 % % 4.9 17% 10.8 age 70-½ or older 35.1 4.do not have to take 9 9.3 a withdra 34.1 wal from every traditional IRA 11.5 24.5 42.1 Introduction Percentage Traditional Assets $25,000–$49,999 85.9% 9,618 85.3% 9,411 17% 88.7% 13,078 10% The Employee Benefit Research Institute (EB 16%RI) was founded in 1978. Its mission is to 13% Account Balance 13% 16% began to appear (Fronstin 2004). By 2013, 23 percent of employers with 10–4 12%99 workers and 39 percent of 10% 12% 15% 15% 14% $25,000–$49,999 $50, 4. 000 5 –$99,999 7.4 20. 12, 9051 4.5 14% 11,7. 85 11 20.5 18,565 6.4 13.9 26.2 $250,000. contribute to, to encourage, and to enhance the developmen 14% t of sound employee benefit owners Percentage they own o ages r defined co 25 or of olAccounts der. ntributio For Roth n plan in which they With owners a ages Withdrawal 25–44, have as th sets, but only an amount that e median withdrawal rate was satisfies the re 50.3 percent, quired minimum which fell to Less than $10,000 35.9 20.9 18.7 1 53.9 0.20 13% 13% Individual retirement accounts (IRAs) 13% are a vital component 12% of 13% U.S. retirement savin 13% 10% gs, representing more than EBRI explores the breadth of employee benefits and related issues. 12% employers with 500 or more workers offered either an HRA- or HSA-eligible plan. As a result, by 2013 these plans 11% Who we are 105% % $100,000–$149,999 15,567 15,270 31,383 $50,000–$99, Average Rollover Amount 999 4.3 6. programs and so 3 $69,012 13.9und public policy 4.3 $72,398 through objective 6.2 13. resear $48,508 7 ch and educati 4.3 on. EBR 9. I is the only 1 21. 0 Length of Time on the Plan: The length of time with the account appears to have influenced individual References $10,000–$24,999 18.9 1 14.7 14.4 19.6 17.3 distribution. Therefore, individuals coul percent for those ages 85 or oldd take all th er. eir distribution out of one account and leave another one they own The Institute seeks to advance the public’s, Among tra5% 5% ditional IRAs, 20.5 percent of the accounts had a withdrawal in 2011, whereas 3.9 percent of Roth 5%EBRI studies the world of health and retirement benefits — issues such as 401(k)s, IRAs, retirement IRA Withdrawals, 2011, 25 percent of all retirement assets in bythe Craig Cop nation. eland A su , Ph.D., bstantial EBportion RI of these IRA assets originated in other tax- 10% $150,000–$249,999 8% 19,339 19,073 40,994 $100, covered 000–$149, 26.1 999 million peo 4.1 ple represe 5. privat 7ntin e, nonprof g about 10.8i15 t, nonpar perce tisan 4. nt 1of , Washington, DC-b the priva 5.7tely insur ased organi 10. ed 7market zation com (Fronsti 3.8 mn itted exclusivel 2013 7.9 ). y to 20.1 Consequently, it does appear that some individuals were taking advantage of the different tax rules between plan $25,000–$49,999 15.1 14.9 15.0 13.1 contributions among those with employ 6 ee-only coverage. While those with an account for less than five years 0.10 untouched. This is why not all accounts owned by for those over this age have a withdrawal. This study is examining IRA income adequacy, consumer-driven benefits, Social Security, tax treatment of both retirement and health $250,000 or more 40,674 40,115 118,821 accounts 5% ha 0%d a withdrawal (Figure 2). For traditional IRAs owned by those age 25 or above, the percentage having a $150, quali 000–$249, fied retire 999 ment plans 4.0 , such as 5. public 4define poli d be cy r 9. nef 0esit earch (penand sion 4.0edu ) an cat d ion on 401( 5.4 k)econ plan om s, ic s an 8.9 d ecuri were ty amoved nd em 2.9 plo toy IRAs ee b6. enefi through 4 t issues. 16.8 Average Traditional Contributions $3,335 $3,723 $3,629 $50,000–$99,999 the media’s and policymaker 12.5 s’ knowledge 16.1 16.7 7.5 ? The EBRI IRA Database, an ongoing project that collects data from IRA plan administrators, contains information types—rollin Chernew, Mich g money ael E., Alliso into th n B. eir Rosen, IRA from an d some A. Mark other Fendri souck. rce, "Value-B and then as ed withdr Insura awi nce ng D it efrom sign." th Health Affairs e IRA. Furthermore, Web 0% contribut The median ed less withdra than wHDH those al rP ates or with CDHP decli Offered an ned acco as uaccount nt for five balan Nor ot Offered more ces a increased, C years DHP or iHDHP n 201 both 3, for contr Do those n't ibu Know tion takin if CDHP lev ge with ls or HDH hav drawals P eW been as Offefrom rtren ed ding activity at the account level, not the indi benefits, Gender cost management vidual level. , worker a Furthermo nd employe re, no r attitude t necessarily are all o s, policy reform p f an individua roposals, l’s acco and p unts are ension assets EBRI’s membership includes a cross-section of pension funds; businesses; trade associations; $250,000 or more 3.8 4.8 7.0 3.8 4.8 6.9 2.3 5.5 15.4 withdrawal $100,000–$149,999 increased from 8.2 percent 5.7 for those ages 25–44 8.7 to 70.1 percent for 9.1those ages 75–84. 2The .5 re was a slight This report 0% presents No findi thingngs from the Le2 ss0 th 08– an $50 20 013 EBRI/G$500–$999 reenwald & Associates $1,000–$1,499 Consumer Engagement $1,500 or more in Health rollovers at job change. Thus, in many cases, IRAs are not only an independent retirement savings vehicle, but a 0% for 20. 000 11 on 20.5 million accounts with total assets of $1.456 trillion. In this study, only withdrawals from the Exclusive (January 2007): w195-w203. there were some individuals who were moving a large portion of their retirement plan assets around in a year, but it Female 11,936 11,956 11,600 down traditional for thos an and d e Roth with fundi Le and under ssIa R th ng. nAs. an acco $20 There is wi In 0unt partic standing of employee benefits and forular, fiv de e spread t or he more median re years. cog wit nh ition Ad m rawal ong that if employee be those rate fo with r traditio an accou nal neIR fits nt As for data exist, EBRI kno was less 59.0 than $1,00percent 0 five or moryears, e for w acc 19 s it. oper- unts 0% labor un $200–$499 ions; health care prov $500–$749 iders and insurers; government org $750–$999 anizations; and service firms. Gender included in this database, part Nothing icularly if he/sh Less than e also $500 has assets in a defined contribution plan. $1,500 or more 2 $150,000–$249,999 5.3 $500–$999 9.3 $1,000–$1,499 9.8 1.8 0% All Less than 50 50–59 60–69 70 or Older Unknown Less than $10,000 up to $50,000 up to $250,000 or decrease for Source: those EBRI/C tradition ommonwealth al Fund IRA Consumerism owners in ages Health C 85 are or Surv ol ey, der 2006 and to 2007; 68.1 EBR per I/Greenw cent. ald & For Associates Roth C onsumer IRAs, Engagemen the perticnentage of these repository Care Survey for(CEHCS) assets built as well up in as tth he e employ 2006 and ment-based 2007 EBRre I/Commonw tirement system. ealth Fun d Consumerism in Health Care Surveys. Nothing Less than $500 $1,500 or more Male 19,770 $500–$999 19,890 $1,000–$1,499 17,827 accounts identified as traditional or Roth IRAs in the database are examined, a total of 15.3 million accounts with cannot be determined from this data either the reasons for moving the money $10,000 or the $50,0 ultimate 00 $250, use 000(s) w Mo hen re it is Source: EBRI/C No ommonw thing ealth Fund Consumerism Less th in an H$50 ealth 0Care Survey, 2006 $500–$999 and 2007; EBRI/Greenwald & $1,000–$1,499 Associates Consumer Engagement $1,50 in 0 or more FeThe above per male $250,000 Health centage of trad Care or Surv more 4. ey4 , 2008–2013. itional assets is adjusted for 6.8 6.6 25.6 kn 4o 15.4 .3wn assets.6. With the unk 5 16.3 22.no 2 wn assets inclu 11.7 ded, 1.7 the traditio 36.2 nal 71.0 cent with less contrthan ibut e$10, d nothin 000, g com in 201 pare 3, d u with p from 4.8 12 perc percent ent for in a ccounts 2011 (Figur of $2 e 50,0 7). Similar 00 or mor ly, te h. e Th perce e mn etage dian with contributin drawal gr ates Source: EBRI/Commonwealth Fund Consumerism in Health Care Survey, 2006 and 2007; EBRI/Greenwald & Associates Consumer Engagement in Health a Health Care their importance to our nation’ Survey, 2008–2013. s economy. accounts with 12 Source: Traditional a EBR wit U = I/C nk h Hdra ommonw ealth now w plan n al ealth wiith nFund creased no deductible Consumerism or from <$1,000 in H3.1 ealth (indiv 15, C percent i76 are dual), 1 Surv <$2,000 ey , for 2006 (family thos and ). 2007; e o EBR 1w 5,ne I/G 99 reenw d 5 by ald 5 & 5 Associates –59 ye Car onsumer 13, olds 82 Engagemen 5 to 9.2 t in percent for those It Fronstin, examinPaul. es the "Can availa 'Co bility nsum oefrism' HRAs Slo an wd the HSA-eli Rate gof ible Healt plah n s, Benefit as we Cost ll as Increas employer es?" an EB d RI Issue Brief no.24 individual contribution 7 (Employ behave ior. e Age Account Balance $1.11 tri C a are llion Survey i , n 2008–2013. assets. Male Gender b 4.4 7.3 25.8 4.4 6.9 22.2 13.1 39.0 74.7 withdr EBRI delive awn. CDHP = Cons Source: EBRI/Greenw rs a stead umer-driv ald en & health Associates y plan stream of invaluable research and anal EBRI’s work advances knowledge and unders wConsumer ith deductible Engagement $1,000+ (indiv in Health idual), Care $2,000+ Survey (fam , 2010–2013. ily), with account. tanding of emplo ysis. yee benefits and their IRA asset percentage is 69.4 Source: HHDHP ealth C EBR = are High-deduc I/G Surv reenw ey, 2008–2013. ald tible & health Associates percent. Based on this asset comp plan w C ith onsumer deductible Engagement $1,000+ (indiv in Health idual), Care $2,000+ Survarison, the database includes ey (fam , 2009–2013. ily), no account. about 30 percent of the assets, $ for 1,50 Roth 0 or IRAs more followed was 29a pe sim rce ilar nt in pattern, 2013, dow droppin n slg ig h from tly fr68.5 om 41 perc percent ent (for in accounts 2011. Simil with arly, less among than $10,000) individuals towith 5.5 an per- a CDHP = Cons So urc um e:er-driv EBRen I IR health A Da plan tab w a ith se deduc . tible $1,000+ (individual), $2,000+ (family), with account. c a Source: EBRI IRA Database. Despite IRAs’ a a CDHP promine = Consumer-driven nce in the health U.S. plan with retir deductible ement $1,000+ system (individual), , there $2,000+ is (family a lim ), with ited account. amount of knowledge about the behavior CDHP = Cons CDHP = Cons CDHP = Cons um um um er-driv er-driv er-driv en en en health health health plan plan plan w w w ith iith th deduc deduc deduc tible tible tible $1,000+ $1,000+ $1,000+ (indiv (indiv (indiv idual), iidual), dual), $2,000+ $2,000+ $2,000+ (fam (fam (fam ily ily ily ), ), ), w w w ith iith th ac ac ac cc c ount. ount. ount. ages 85 or Benefit older. Research Institute, July 2002). Unknown Female 4.8 11.1 37.5 44.2 4. 36.3 6 9.1 36.6 36.5 18.5 31.8 47.1 76.8 importance to the nation’s economy among policymakers, the news media, and the public. It EBRI publications include in-depth coverage of key issues and trends; summaries of research and the number of individuals owning IRAs is about 25 percent, accounting for growth from the 54.5 million individuals the account cent (amon for g at a ccounts least five of year $250,000 s, the percent or more age ). not contributing increased from 5 percent in 2010 to 20 percent in of individuals who own IRAs, either alone or in combination with employment-based defined contribution (DC) plans. Source: EBRI IRA Male Database. 46.3 49.9 50.3 45.0 does this by conducting and publishing policy research, analysis, and special reports on ? Just over 16 percent of traditional and Roth IRA accounts had a withdrawal in 2011, including 20.5 percent of What we do findings and policy developments; timely factsheets on hot topics; regular updates on legislative and IRS reported owning an IRA i CDHP Eligibility n 2008. See Victoria L. Bryant, “Accumulation and Distribution of Individual Account 2013 (Figure 8). Th EBRI’ e perce s mission is to contribute to, to ntage of individuals with an account for at least five years contributing $1,500 or more Unknown 16.2 13.8 13.1 23.2 Conc With respect . lusio "Findings tn o the From account the 2013 balanc EBRI/Greenw emplo es of y ee benef traditional ald its issues; holding educational br & Associates IRAs, the Consumer percentage Engagement exper iefings for EBRI memb iencing in a Health withdrawal Care ers, congressional and Survey increased ." EBRI Issue from Consequently, EBRI created the EBRI IRA Database, which links accounts both within and across data providers. This traditional acc regul ounts. This atory de pe velopment rcentage s; was l comp argely rehen drive F si igur ve ne refere by activity 4 nce resou among tra rces o dn ition benefit pro al IRAs ow grams ned ban y indiv d wo idua rkforce ls The distributions of the withdrawal rates for males and females were almost identical. Males’ withdrawal rates of 7 Arrangements, Source: EBRI 2008.” Statistics of Income Bulletin, Spring 2012, IRA Database. pp. 89–104 for complete IRS tabs of IRAs. Also, see Board federal agency staff, and the news media; and sponsoring public opinion surveys on employee According to the 2013 CEHCS, 11.8 million adults ages 21–64 (9.7 percent of the U.S. population) were enrolled in a declined from 80 percent in 2010 to 45 percent in 2013. Brief, no 393 (Employee Benefit Research Institute, December 2013). 11.9 percent for accounts with balances less than $10,000 to 38.2 percent for accounts with $250,000 or more. Roth is being done both by calendar year and longitudinally, allowing for the examination of retirement asset holdings both Just over 16 percent issue encour of s; tra and age ditmajor survey ional , and to enhance the development and Roth s IRA of pu account blic Fi attitudes. g s u had re 6 a withdrawal in 2011, including 20.5 percent of Distribution of Withdrawal Amounts for Those Tak th ing a Withdrawal from Individual ages 70-½ or older where the individuals were required to make withdrawals from their tax-qualified accounts. benefit issues. EBRI’s Education and Research Fund (EBRI-ERF) performs the charitable, of Governors of the Federal R those taking a withdrawal had eserve System, a distribution "Flow of 4.4 of Funds A percent ccounts of the United Stat at the 25 percentile, 7.3 es: Flows and Outstandings F percent at the median, and ourth plan with an HRA or HSA. An additional 9.3 million reported that they were in an HSA-eligible plan but had not IRAs followed a similar EBRI pattern, meetings Perc as present an en th te ag acc e o ount fd Texplore i rbalanc aditioe n sia n sues l crIRA eased, with s W fro thou ith m a ght 3.0 Ro leade pllo ercent ve rs r an from all se for d accounts ctors. less than $10,000 to traditional at a point in acc tio me unts. and This as tpe he rcentage Retirement A individual was ages largely ccounts, by and eith drive er nc by h V anges aactivity rious Characteristics, 2011 jobs am oong r retires. tradition al IRAs owned by individuals ages th educational, and scientific functions of the Institute. EBRI-ERF is a tax-exempt organization of sound employee benefit pr Figure Figure ogr Figure Figure Figure ams and 10 12 6 4 2 Quarter 2012,” for the Fed nu 25.8 p Income ercent a Dif t the ferences: 75 perc Gen mbers at entile. erally, Th low www.federalreserve.gov/releases/Z1/20130307/z1 e co er-i mparabl ncome e in distr dividuals Figure ibution with 8 for an females HSA were was less 4.4 perc lik .pdf elent, y to make 6.8 percent, contributions and to . "Health Savings Accounts and Other Account-Based Health Plans." EBRI Issue Brief, no. 273 (Employee Benefit Figure 2 13 opened such an account. AT ls ho us, Hav overall, ing a about Withdr 21 mil aw lion al, and adults Per ages cent 21a –64 ge of with Tra priva dit te ional insura nce, representing EBRI regularly provides congressional testimony, and briefs policymakers, member organizations, 8.8 ?perc Looking at ent for acc accounts ounts that of $25 hav 0,0 supported b e00 bot orh a more. wit y co hAccount ntributions drawal and a ro s and g ownerants. d llover, th by males ere ana d ppea femal red es to had besimilar some movem levels, e wnt of do ith llars 70-½ or older where the in Adividuals ll With Withdraw wereal required to make Tradit witih onal draW wal iths W from ithdraw thal eir tax qualified Rot acc ho W unts. ith With In drawal Annual Individual Contributions Figure 8 to the Account, Percentage AAnnual Individual Contributions to the n A An n nu n nal Indiv u ual Indiv al Employ of Indiv idual Contributions idual Contributions er Contributions iduals With Employ to to to the the the er AContribution A Account, cco Accou cco un un t, nt, t, the 25.6 acco percent, unt Rese th arch respectively. an hi Institute, gher-inco Septemb m P IR e eA r peopl cse W ent r e 2004). a i. th ge Tw a of enty W Iindi thdr perc via ent dua wal of l R A peo le sto ip r le e Hav m ine h int ng a ouseholds Acc Rol ount lo wit s ver W h ,less i th than $50,000 in income did and the media on employer benefits. 17.3 This artic percent le ex oamines f that sound public policy thr market, the percentage were eith of er trin aditional a CDHP ough objective or or Ro an th HSA-eli IRAs in gible the pl EBRI an but IRAha Data d no base t ope that ned ha the d a account. withdraWh wal ein n withdr 4 awals at 22.25t 0 percent h Prctl. and Median 20.1 perc 75t ent, h Pres rctl.pectiv 25te h ly, Prcfor tl. tradit Median ional a IRAs 75tand h Prc3.9 tl. percent 25th Prc ta l.nd 3.3 Median percent 75t for h Prctl. consistent with a desire to take ad vantage of differing tax rules betwe a en IRAs a a anad employment-based retirement contrast, among accounts owned by individuals ages 25–60, 10 percent or fewer had a withdrawal. Percentage among of IRA People With Family Withdrawal Amount CDHP s of ,Traditional 2006–2013 IRAs Also Bryant (2012, Endnote 3) reported that among among to A among People W among People With Employ ccou People With Employ 15.1 million taxpa nt, People With Family among ith People Employee-Only CDHP y ee- ers had withd ee- O With O nlnl y CDHP y or Employ or Family rawals from Family , 2006–2013 men CDHP CDHP t-B and a traditional or Roth IRA that totaled ased and and By Age and Account Balance, 2011 a Withdrawal, by Various Characteristics, 2011 not contribute to Ethe BR Iaccou issues nt in pre 20 ss 13 rele (Figure ases 9), on ne compa wsworthy red with developm 9 percent ents, of peopl and i es with among $50,the mo 000 in st house widely qu hold oted All their children were incl $2,319 uded, 26. $6, 1 500 million indivi $7,600 duals wit$2, h pr 376 ivate in$6, sur750 ance, re$18, prese 000 nting 1$1, 5 perce 900 nt of $5, the 000 market, $10,500 2011. In addition, the amount and EBRI Issue B the proportion riefs o are period f the account icals providing exp this a withdra ert evaluati wal reprons of emplo esents is inv yee benefit issues and estigated by IRA Roth plans; n IRAs. 70 % early a third (29.5 percent) of those having both a rollover and a withdrawal took a withdrawal at least 80% Receiv Household iA ng a t Least Some Health Account for 5 or More Health Benefits and Rollov Income er Where $50,000 or the Engagement, CDHP A Ym ears, 2010–2013 ou More, 2006–2013 , nt Equals 2006–2013 2009-2013 or Exceeds 60% research and education. $216.0 billion in 2008. Of these taxpayers, 14.3 million (94.7 percent) withdrew from a traditional IRA for a combined . "Tiered Networks for Hospital and Physician Health Care Services." EBRI Issue Brief, no. 260 (Employee Benefit sources on employee benefits by all media. 2 All With Traditional With Roth With Ageincome who did not contribute (Fitrends, as well gure 10). Foras cr theitical analy lower-inc ses of ome emplo group y,ee benefit po the percenta licies an ge co d proposals. ntributing EB $1RI Notes ,500 or m is a ore For those at the RMD age, the withdrawal rates at the median appeared close to the amount required by law to be type were Our aeith nd er acco in unt a CDHP balanc or e, an a sHSA-eli well as gible by th ple an. gender and age of the account owner. Furthermore, the fraction of Accounts 80%With Withdrawals 100% of the Rollov and Rollovers er, by Age and A ccount Balance, 2011 90% equal to t 60 70% % hat of the rollover. amount of $212.3 billion, and 0.8 million (5.3 percent) withdrew from a Roth IRA, totaling $3.7 billion. This translated into Rese arch EBRI Institute, direct August s membe 2003). rs and other constituencies to the information they need and undertakes new Less than 25 520 1,monthly 850 period 5,W 400 iical providing current informati thdrawal 549 Wit1, hdr 953 awal W on on a variety of employ 6,455 ithdrawal 497 ee b 1,e600 nefit topics. 4, 000 45% fell between 2012 and 2013, from 29 percent to 22 percent. Among the higher-income group, the percentage withdrawn, but some were significantly more. The highest 25 percent did appear to be taking out amounts in excess traditional IRAs receiving a rollover and having a withdrawal is studied. 55% 2006 2007 2008 2009 2010 2011 2012 2013 42.0% There co 70 u% ld be va resea rio Aulls rch reaon a sons n mo ongoi tivat ng ing 71% ba a sis. with 16. d1% rawal from an IR20. A, 5% such as paying ret 3. irement 9% expenses, 54% or being 25–44 33.2 percent of the taxpayers 2,036 with a tradition 5,EBRIef 351 is a weekly a 13, l account at th 913 roundup of 50.8%2,380 e end of the EBRI resear 6,167 year 2008 h ch and 15, insights, as 772 aving a withdrawal, compared with 5.0 well as updates on survey 1,450 4,000 s, 7,591 80% Averag publications 60 e %Withdrawal Amounts 69% It was foun Of d T thos hat ea Wsi ithgni a R fica ollov ner t percentage of work 2009 ers wit 2010h traditional 2011 2012 he 20 alth 13 benefits were eligible for account 53% -based contributing $1,500 or more also fell between 2012 and 2013 but was 53 percent in 2013. 80% 2006 2007 2008 2009 2010 2011 2012 2013 of ? that While th require 70%e m d by edian law, withdrawal rates su but some of these ggest accounts that ma 20 10 could 20 ny in 11 be t dhe 20 ividuals 12focus 2013 are of thi he ghly l owne ikely to rs’ withdra maintain wals the inst I ead RA as a of other 50% EBRI has earned widespr Age 67% ead r 39.4% egard as CHECK OUT EBRI’S WEB SITE! 2006studies, litig 2007 2008atio20 n, leg 09 islation an 2010 2011d regulati 2012 on aff 2013 ecting employee benefit plans, while EBRI’s 45–54 EBRI 2,500 maintains an 7,000 d analy19, ze467 s the most 2,557 comprehen 7,637 sive databa 20,000 se of 401(k) 1,865 -type prog 5,000 rams in the 10,000 required to by the federal government’s 66% required minimum distribution (RMD) rules. However, there may also be tax percent of those with a Roth IRA. The IR 40 A% lso Having a Withdrawal S data was at the taxpayer level, while the database was at the account level. 38.7% 65% 60% 50% 64% 37.8% The average withdrawal amounts of those taking withdrawals from traditional IRAs increased with the age of the health Endnotes plans. Among iLes ndivi s d than uals 63% 25 with traditional, em 5.9ployment-based 14. health 2 benefits and a 2. 3 choice of health plans, Blog supplements our regular publications, offering commentary on questions received from 55–59 accounts 50 ow % ned by th 2,500 em. 7,300 20,000 2,507 7,694 20,000 2,000 48% 5,452 12,000 source of inco worl me throu d. 62%Its co gmputer hout retirem simul ea nt, tion further stu analyses d y is on So nee cial ded Secu to se rity e if these reform in and retireme dividuals are ke nt income a eping their dequacy 8 Furthermore, some of the data administra reasons to first rollover from a 401(k)-type tors supplying dat plan to a trada itio to the databa nal IRA, and se did then no tot pro take vide info a withdrawal rmation fo from r acco the unts with IRA. As Data 60% an organization that “tells it like it is,” Health Engagement 25–44 Differences: There was 6. a 4correlation between 8.2health engagemen 3.4 t and individual account o 70w %ner, from $7,917 (those younger than age 25) to $22,775 (those ages 60–64) (Figure 3). At that point, news reporters, policymakers, and others. EBRI’s Fundamentals of Employee Benefit 60–64 37 percent were eligi 4, b000 le for an HRA 10,000 or an HSA-base 25,000 2006 d pla 4, 20n 000 07in 2 20013, 08 10, 20 abo 09 650 ut 20the 10 same 25, 2011 551p 20 e 12 rcenta 20 2, 13 577 ge as has 6, be 085 en eligible 15, 000 1 50Of 60 %% Those With a are unique. withdrawal rates at these levels as they get older. 65% 35% See http://www.mercer.com/press-releases/1565095 a zero balance an example, a at year-end, whereas the IR withdra 45–54 wal from a tradition S data included al IRA t 8. aken 3 be withdrawals for taxpayers that fore age 59-½ 10.1 for a first-time depleted their accounts during the home 3.3 purchase ($10,000 Withdrawal Also Having a Programs offers a straightforward, basic explanation of employee benefit programs in the EBRI’s website is easy to use and packed with useful information! Look for 65–69 contributio Looking The the aver EBRI age atIRA ns acc withdra tDatabase, o o unts an HSA. w 4, that al 200 start T an hav hos ongoin ed ee bot 10, de to h fin 056 declin g ae project d wit as e h drawal with bein 24, that 000 g age, eng col and lsli ects age a pp 4, ro d ing 398 data llover, in to th from eir $11, thhealt ere 10, 765 IR 500 A a h ppea for plan reported those raed d 24, mini to 500 atha g be strators, es t s they 85 ome or 2,di 548 movem contains ol d der. at leThe e as nt inform t 6, one avera of 500 do o atio llars fg e th ne 17, for997 based on the facts. As the Bylaws state: 60% 40 for % such 50 pla %ns since 2007 (Figure 1). Rollover 55–59 9.0 10.8 3.1 private and public sectors. The EBRI Datab 3 ook on Employee Benefits is a statistical year. 60% 70–74 maximum) is not subject 2,000 to the 10 5,654 percent 14, tax 775 penalty that 2,000 an identical 5,659 withdra 14, w770 al for this 2, purpose 000 from 5,500 a 401(k)15, - 000 50% 29.5% followi consistent 2 2011 on ng: 2 0 w .5 ith million a desire accoun to take ts with adva total ntage assets of difof feri $1. ng 45 ta 6 x trill rulion. es between For each IRAs accou and nt employment within the data -basbase, ed retthe irement following withdrawal amounts of those taking a withdrawal also increased with the age of the Roth owner, from $3,715 for 4030 % 50 %% 60–64 15.0 17.7 4.9 these special features: EBRI makes information freely av28.5% ailable to all. More information about the surveys 28.1% can be found in Fronstin 2013. reference work on employee benefit programs and work force-related issues. “In all its activities, the Institute shall 75–84 40% 1,800 4,852 12,822 1,800 4,834 12,785 2,000 5,600 15,000 type plan would be. In that these considerations might influence the timing or order of withdrawals, this section looks Employer and Worker Contributions to Health Reimbursement Arrangements and 65–69 18.5 21.7 5.2 26.7% are plans; those delin youn neeate arly ger EBRI d: a than thir thassume e d ag IRA (29.5 e 2 type; 5s percent to a publi $2 the 3,1 ) accou c of 96 service re tho for nts those e bala havin nce, spo ag g es n bot cont si6 bility h 5ri –69. a butions, ro to llover Th make e av rollo an er its finding d age vers, a wit Roth and hdra s with wit w co ah mpletely l drawal drawals took a th with dur acce en dr in lessi g awal veled th ble e at year; off at least www.ebri.org to th aequal e range 5 25.3% 85 The or older balances 50% were the end-of-year amounts 1,530 3,964 11, in the a 233 ccount 1,532 s, so they were afte 3,960 r the withdrawals occurred. 11,200 1,392 4,463 14,786 Employer 40% Contributions 70–74 51.7 60.7 7.8 • EBRI’s entire library of research publications starts at the main Web page. Click on EBRI Health Savings Accounts, 2006–2013, at ? traditio Checked nal IRA whet accounts her my healt with h both plan rollo wou 29.0% ver ld co anver d with my dr car by P awal e a or u al c medi F tivity rons cation. tiin n , 2 Ph 011. .D., EBRI 45% 25% function strictly in an objective and 30% 40% — so that all decisions that relate to employee benefits, whether made in Congress or board rooms or asset to that allocatio of the 40%rollover. n; and ce rtain demographic characteristics of the account owner (among other items). In this study, of $21,000 to $23,000 for owners age 70 or older. Unknown 3,309 9,674 25,000 3,423 10,000 25,000 2,178 5,692 16,000 Contact EBRI Publications, (202) 659-0670; fax publication orders to (202) 775-6312. 75–84 62.5 70.1 8.3 Issue Briefs and EBRI Notes for our in-depth and 34% nonpartisan periodicals. Seven out offamilies’ 10 workho ers m (71 es, percent) are based wit on the highe h an HRA or HS st qualit A report y, most depe ed that their nda em blploy e informatio ers contributed n. EBRI’s Web to the account site po in sts 6 30% 25.1% 30% 24.8% Account Balance Subscriptions to EBRI Issue Briefs are included as part of EBRI membership, or as part of a only ? wit Checked hdraw als the from price th of e a a ccounts doctor’s identi visit, fme ied dic as ation, traditio 32% or nal other 32% or Roth 32% healtIR h car As e in sth ervice e data before base ar I receiv e exam ed ined, care. a total of Beginning in t 40% he year individ 85 or older uals turn age 70-½, owners 63.5 of tax-qualified plans/acco 68.1 unts (e.g., 401(k)-type plans, 9.2 unbiased manner and not as an advocate 19.8% 31% Orders/ 30% Two ? m This easures report are pres used entsin fi th ndi is ng study s from to th exa e 2 m0 ine 13 E thB e RI/ occ Gu re rrence enwald of & As rollosvers ociates and Cons withum drawals er Enga in gem the e same nt in H acco ealth unt Car . e 20% 22.5% While the mall edian resea withdrawal rch finding rates s, publi suggest cations, that an mad ny ne in ws dividu alert als s. are EBRI also exte highly likely to nds maintain its edu c the ation IRA and pu as a sour blicc se e of rvice 2013 (F 21.9% igure 2). The percentage of workers with an HRA or HSA plan whose employers contributed to the account Les Among s than $10, acco 000 unts with592 balances of 3,$199 annual sub 341 $10,000 an 9,963 d mor scription e for to 500 both EB RI Not IRA ty 3, epes, s 192 andthe EBRI Issue average 10,000Brie withdra fs. 1, Change of 389 wal increased Address: 3,900alon EBRI, g with 8,500 30% 30% Unknow n 16.3 21.2% 20.7 3.9 21.4% 30% 15.3 million accounts with $1.11 trillion in assets. 27% traditional IRAs) are required to make an annual minimum distribution (withdrawal). The required minimum distribution • Visit EBRI’s blog, or subscribe to the EBRIef e-letter. ? Checked the quality ratin 19.4% g of a doctor or hospital before I received car 25%e from them. Survey role (CEHC to improving Ameri S), as well as earlier can surveys, exami s’ financial knowle ning th dge e availa through bility its a of h we ard alth -win reim ning bursement a public serra rvice ngeme camnts paign First, of those traditional or opponent of any position.” IRAs that 1100 13th St. NW, Suite 878, Washington, received a rollover, 21.9 percent also had DC, 20005-4051, (202) 659-0670; fax number, a withdrawal (Figure 6). Secondly, of $10, income 000–$24, th999 roughout reti A904 ccreme ount B nt, alanc furt 2,006 eher study 9,is 000 needed to 884 see if these 1,868 indivi 18. duals 7% 8,690 are keep2, in000 g their wit5, h047 drawal rat 10, es800 20% has been steadily increasing since 2009 and in 2013 reached its highest level since the inception of the survey. the account 30% balance, with the average withdrawal from traditional IRAs reaching $40,115 for accounts with $250,000 Subscriptions ® (RMD) is calculated by the end of the prior-year balance divided by the longevity factor published by the IRS. For those with 20% 10 15% 16.1% (202) 775-6312; e-mail: subscriptions@ebri.org Membership Information: Inquiries $25,000–$49,999ChoosetoSave 1,Les 740s than and $10, 3,000 the 000companio 10,000 n 9.site 4 ww 1,729 w.chooset 2, 11. osav 884 9 e.org9, 710 4.5 2,400 5,522 12,000 those (HRAs) and tradit 20%ional IRAs health-savin that experi gs-a enced ccount (HSA)- a withdreligi awal, ble 9. p 4 lans percent (consumer-driv also received en h a erol alth lover. plans, or CDHPs The percentag ). It also looks e of those at ? thes • Talked eEBRI’s reliable health and retirem levels to as my they doctor geta ol bout der. prescript Additional ion ly, op once e tions nt surveys ar 20 and 12 cos data ts. is e just a click away through the topic boxes at processed for the EBRI IRA Database, the withdrawal 20% In or more. Figure Ma 1, les the had distributio highern aof verage thes 14.2% ewit accou hdrawal nts by amo acco unts untthan bala females: nce, IRA for type, exampl and te, hef o owner r traditio ’s ag nal e aInd RAs, gen $1 d9,89 er are 0 13.8% more than one 20% IRA, the required minimum 20% distribution does not have to be taken fro 16% m each account but can be taken from $10,000–$24, regarding 999 EBRI membership an 12.6 d/or con 18. tributio 0 ns to EBRI-ER 16% 3. F should be dir 0 ected to EBRI $50,000–$99, 20999 % 3,158 4,986 11,500 3,160 4,922 19% 11,200 3,000 6,200 18,200 12.4% Among at emp worker loyer a s with nd i an ndivi employer dual cocontribut ntribution ion, behavior. those with employee-only coverage saw their annual employer with a rollov 20% er that also had a withdrawal increased with the owner’s age, from 16.1 17% percent for those owned by behavior over time (longitudinally) for a three-year period will be examined. 14% Furthermore, the integration of IRA data the top of the page. presented. Just over 25 percent of the accounts were owned by 25–44 year-olds, and another 22.7 percent were compared with $11,956. $25, 15% 000–$49,President Dallas 999 Salisbur 15.8 y at the above address, ( 21.0 202) 659-0670; 3.e-mail: 1 salisbury@ebri.org 13% $100, only o ? 000–$149, Talked ne acco 10% 999 to unt as lo my doctor 5,ng the t 200 about otal minimum amo 7, other 500 treatment 15,000 unt withdrawn options 5,and 201 from that costs. 7,500 one account equals the total that must be taken 15, 13% 000 4,965 10,000 30,000 12% EBRI is sup 9.4% ported by organizations from all industries and sectors that appreciate the value of 12% 9.2% 10% 8.2% 10% 11% contributio younger-than ns -increase 50-year-ol bet ds we to en just 200 over 6 and ha 2 lf008, (50. 8 but perce fall n in t) 11% 20 of 09 those and owned 2011. Bet by w 70-or-olde een 2006 r-ayear-o nd 2008, lds. the In contrast, percentag the e $50,000–$99,999 20.7 24.0 3.8 7.9% with data fro 10% m 10% employment-based defined contribution retirement accounts that is currently underway will allow for a $150,000–$249,999 7,899 11,000 19,600 7,914 11,000 19,453 5,807 12,530 37,500 owned by those ages 45–54. Among the account balance categories, 7.0% 35.9 percent of the accounts had a balance of for all the accounts combined. 9% Consequently, in this study of IRAs, not all of the traditional IRAs owned by those over 70 9% 10% 9% 9% 9% 9% 9% 8% 5% unbiased, reliable information on emplo • Need a number? Check out the 10 10% % EBRI Databook on Employee Benefits. yee benefits. Visit www.ebri.org /about/join/ for more. ? ? Us The ed per anc onli enta ng ee cos of workers t trackin r g e tool portin provide g t 8% hat t 8%7% d by heir my employe health rplan s contribut to mana e to ge the my account 7% health e ix ncreased. penses. Among individuals 7%$100,000–$149, 7% 999 24.7 26.2 4% 6.1 4% 4% 4% Editorial Bo 10% ard: Dallas L. Salisbury, publisher; Stephen Blakely, editor. Any views expressed in this publication and those of the authors should reporting that their employers contributed $1,000 or more6% to the 7%account increased 3% from 3% 26 percent 3% to 37 percent $250, There percentage 000 is or si mgnif ore of itraditional cant 5% variatio 15,500 IRA n in s with amou 25,309 a nts with wi drawal 5% thdraw 46,000th n at from al15, so IRAs 509 had that a rollov 25, can 306 enr ot decreased be ascerta 45,930 as ined the from 10, account 000 just own exami 26, er 000 nin aged, g thfrom ese 87,799 better picture of what individuals who own all these accounts do as they age through retirement. 5% 4% 5% less than $10,000, and another 18.9 percent ranged from $10,000 to $24,999. Almost three-fourths of the accounts years of age had a withdrawal. Owners of Roth IRAs are no 2. t requ 9% ired to take a distribution. For more information, see the $150,000–$249,999 28.3 29.4 7.0 not be ascribed to the officers, trustees, members, or other sponsors of the Employee Benefit Research 2% Institute, the EBRI Education and with employer contributions, the perc th 1% entage with contributions between $200–$499 and $750–$9th 99 increased Gender (Fi 22.5 gur percent e 3), t 0% ho for ugh those it fell you to n3 g2 er percent than age in 2 50 009 to an 2.9 d perc to 24 ent perc forent those in 20 ages 11. Mor 70 or e re olce der. ntly, the past few years have averages ?• Develo Instan . Figu ped re tly ge a 4b pr udg t e-m esents et to ail noti tm he an25 age ? cations of the latest EB pe my rcen hea tile, lthcare median exp e (mid-point, nses. RI data, half above surveys, publications, and m and half below), and 75 per eetings centile for Research Fund, 0% or their staffs. $250,000 Nothin or g her more ein is to be constr 37. ued as an attem 3 pt to aid or 38. hi 2nder the adoption of a8. ny 8 pending legislation, regulation, were traditional IRAs, while the rest were Roth IRAs. Male owners represented 46.3 percent of the accounts, females IRS Publication 590, online at 0% www.irs.gov/publications/p590/index.html 0% Employer Contributes to Account No Employer Contributions Don't Know Fem 0% ale 1,813 5,000 12,369 1,825 5,000 12,600 1,600 4,500 9,836 This rese while arch contri on bu IRA tions of No with thingdr$1, awals 000 or mor willL ebe ss th built e an fell $50u 0in 2 pon0 in 13 fu . ture studies by examining how IRA own $1,50 er0 s orwith more a 401(k) plan $500–$999 $1,000–$1,499 0% shown or interpretative no clear tren rule, or as d. Nothing In legal, 2012, acco tunting, he perc Leactuarial, o ss en than tage $500r other such prof of workers $500–$999 reportin essional advice. g that their $1,000–$1,499 employers contribut $1,500 eor d m $1, ore000 or more each factor examined. Gender The overall median withdrawal amount of those taking a withdrawal from a traditional IRA was and semLe inars by clicking on the “Notify Me” or ss than $200 $200–$499 $500–$749 “RSS” buttons at the top of our ho $750–$999 $1,000 or mm oree page. All 0% Less than 50 50–59 60–69 70 or Older Unknown Less than $10,000 up to $50,000 up to $250,000 or 37.5 percent, and the remaining 16.2 percent were unknown. ? Asked 0% for a generic drug instead of a brand name drug. Male All 3,000 Less than 50 8,600 50–59 21, 60–69 800 70 or 3, O 000 lder Unknown 9,000 Less than22, $1 394 0,000 up to $5 2, 0,0 000 00 up to $250, 5,000 041 or 12,000 draw down those assets th across accounts, leveraging the unique ability of EBRI’s databases to link th individuals’ IRAs 7 NoF thi em ngale Less than $500 15.6 $500–$999 20.1 $10, $1,000–$1,499 000 $50, 3.000 3 $1$2 ,5050, 0 or00 mor 0 e More Nothing Less than $500 $500–$999 $10,0 $1,000–$1,499 00 $50,000 $250,000 $1,500 or m Mo ore re increased from 24 percent to 28 percent, but fell to 23 percent in 2013. $6,7 Some of this 50, while Source: trend was due the EBR 75 I/Commonw perce ealth ntile to older IRA owners being fa Fund oCfonsumerism the wit hdraw in Health Cal are amo Surveyr mo u , 2006 nts re likely to have larger and was 2007; $18, EBRI/G 000. reenwald This & Associates valacco ue Cfor onsumer unts, the particularly amo Engagemen 75 petirce n ntilen w g the as Unknown 2,160 6,000 16,075 2,235 6,217 17,000 1,700 4,950 10,246 Source: EBRI/Commonwealth Fund Consumerism in Health Care Survey, 2006 and 2007; EBRI/Greenwald & Associates Consumer Engagement in ? Workers with Source: EBR employee I/C M ommonw ale ealth -only Fund C coverag onsumerisme in dro Health p17. pe Care 4 d Surv they eir , 2006 con and tri 2007; butions, EBR 22. I/G0 reenw but ald those & Associates with Consumer fa 3.mily covera 9 Engagement in ge Health kept their EBRI Notes Source: is re EBR gister I/Commonw ed in the U. ealth Fund S. Patent and T Consumerism in rade Health mar Ck Office. are Survey I , 2006 SSN: and 1085 2007; ?445 EBR2 1085 I/Greenwald ?4452/9 & Associates 0 $ . Consumer 50+.50Engagement in Health Health Care Survey, 2008–2013. There’s lots more! ? Asked my doctor to recommend a less Age costly prescription drug. Account Balance and 401(k) accounts. H Source: ealth Ca EBRI/Greenw re Survey, 2008–2013. ald & Associates Consumer Engagement Age in Health Care th Survey, 2010–2013. Account Balance Care Survey, 2008–2013. C Source: aa re Surv EBR ey, 2008–2013. I/Greenwald & Associates Consumer Engagement in Health Care Survey, 2009–2013. Source: largest accounts. EBRI IRA Database. CDHP = Consumer-driven health plan with deductible $1,000+ 1100 13 (individual), St $2,000+ reet NW · Suite 878 (family), with account. aa Unknown 13.6 16.7 5.4 CDHP a = Consumer-driven health plan with deductible $1,000+ (individual), $2,000+ (family), with account. aa CDHP = Cons Source: um EBR er-driv I IRA D en health atabase. plan with deductible $1,000+ (individual), $2,000+ (family), with account. CDHP = Cons CDHP = Cons umum er-driv er-driv en en health health plan plan with wideduc th deduc tible tible $1,000+ $1,000+ (indiv (indiv idual), idual), $2,000+ $2,000+ (fam (fam ily), ily w ), ith wiac th c ac ount. count. contributio CDHP = Cons n levels steady. umer-driven health plan with deductible $1,000+ (individual), $2,000+ (family), with account. Source: EBRI IRA Database. Washington, DC 20005 Source: EBRI IRA Database. Visit EBRI on-line today: www.ebri.org ebri.org ebri.org ebri.org ebri.org ebri.org ebri.org ebri.org ebri.org ebri.org No No No No No No No No Nottttttttte e e e e e e e es s s s s s s s s • Februa • Februa • Februa • Februa • Februa • Februa • Februa • Februa • Februar r r r r r r r ry y y y y y y y y 2014 2014 2014 2014 2014 2014 2014 2014 2014 • Vol. 35, No. 2 • Vol. 35, No. 2 • Vol. 35, No. 2 • Vol. 35, No. 2 • Vol. 35, No. 2 • Vol. 35, No. 2 • Vol. 35, No. 2 • Vol. 35, No. 2 • Vol. 35, No. 2 1 12 10 15 8 2 3 6 9 8 (202) 659-0670 www.ebri.org © 2014, Employee Benefit Research Institute ?Education and Research Fund. All rights reserved. www.choosetosave.org A monthl y newsletter from the EBRI Education and Research Fund © 2014 Employee Benefit Research Institute ebri.org Notes • February 2014 • Vol. 35, No. 2 ebri.org Notes • February 2014 • Vol. 35, No. 2 ebri.org Notes • February 2014 • Vol. 35, No. 2 ebri.org Notes • February 2014 • Vol. 35, No. 2 ebri.org Notes • February 2014 • Vol. 35, No. 2 ebri.org Notes • February 2014 • Vol. 35, No. 2 ebri.org Notes • February 2014 • Vol. 35, No. 2 ebri.org Notes • February 2014 • Vol. 35, No. 2 ebri.org Notes • February 2014 • Vol. 35, No. 2 ebri.org Notes • February 2014 • Vol. 35, No. 2 20 13 17 1 14 11 16 9 7 4 5 6% 14% 13% 7% 28% 27% 2% 15% 14% 5% 18% 24% 3% 15% 13% 3% 19% 24% 1% 9% 10% 8% 12% 17% 2% 12% 12% 7% 15% 20% 3% 10% 10% 4% 11% 15% 3% 7% 7% 6% 15% 20% 2% 9% 6% 5% 19% 20% 11% 15% 16% 19% 23% 22% 7% 8% 5% 13% 16% 16% 6% 5% 5% 12% 14% 18% 3% 8%6% 17% 22% 14% 5% 8% 8% 12% 17% 17% 7% 9% 9% 14% 19% 22% 6% 8% 6% 14% 20% 22% 9% 9% 8% 15% 18% 23% 11% 11% 19% 19% 31% 12% 4% 10% 11% 14% 19% 30% 10% 11% 15% 15% 30% 12% 9% 16% 18% 32% 6% 11% 9% 12% 17% 18% 33% 11% 8% 16% 17% 29% 9% 9% 7% 10% 12% 13% 29% 7% 9% 19% 21% 26% 11% 11% 15% 9% 9% 10% 9% 16% 14% 14% 16% 13% 7% 16% 12% 12% 15% 21% 8% 15% 16% 12% 11% 16% 8% 15% 15% 9% 10% 18% 9% 18% 13% 13% 12%13% 9% 13% 16% 11%15% 15% 7% 16% 14% 11% 14% 15% 9% 13% 36% 16% 21% 26% 52% 37% 50% 18% 30% 31% 70% 48% 51% 30% 27% 37% 59% 47% 53% 21% 37% 32% 73% 54% 50% 28% 37% 31% 61% 47% 54% 24% 30% 44% 64% 55% 59% 28% 29% 42% 63% 60% 57% 23% 22% 32% 59% 53%