Tag: IRA balances

Senior man calculating finances

Abstract For most workers, 401(k)/IRA assets represent the main source of retirement savings outside of Social Security.  These accounts can generate significant wealth if workers contribute consistently from a young age, keep their money in their accounts, and minimize their investment fees.  However, most workers have 401(k)/IRA balances at retirement that are substantially below their…

elderly man inserting credit card to ATM

The brief’s key findings are: As 401(k)s and IRAs have become the dominant source of retirement saving, the potential for pre-retirement withdrawals – “leakages” – has grown. Leakages occur via three channels: 1) in-service withdrawals for hardships or after age 59½; 2) cashouts when individuals leave a job; and 3) loans. Estimates indicate that about…