Americans held nearly $9 trillion more in individual retirement accounts than in 401(k) plans at the end of 2025, according to data from the Investment Company Institute, highlighting how rollovers rather than direct savings have become the main driver of IRA growth.
Individual retirement accounts held about $19.2 trillion, compared with $10.1 trillion in 401(k) plans.
The Reason? Rollovers.
Investors contributed just $89 billion directly to IRAs in 2023, while $682 billion came from rollovers, or money transferred from 401(k)s and similar workplace retirement plans when workers changed jobs or retired, according to IRS data.
"People by and large don’t save money in IRAs at all," said David Blanchett, a certified financial planner and head of retirement research at Prudential Financial, told CNBC. "All the money in IRAs is coming from rollovers."
