Survey Shows Americans Prefer to Hang on to Their Retirement Accounts

The following is from Eileen Alt Powell, Americans Delay Spending IRAs, sfgate.com, Jan. 27, 2008:

Americans who have money stored in Individual Retirement Accounts tend to hang on to it for use in the later years of their retirement, according to a study being released Monday.

The Investment Company Institute, a Washington, D.C.-based trade association, found that less than one-fifth of households with IRAs made withdrawals from their accounts in tax year 2006, with the typical withdrawal averaging about 6 percent of the balance.***

She said that other studies have found that people want to hang on to their IRA money as long as possible to preserve the tax advantages.***

The greatest growth has come from assets rolled over into IRAs from employer-sponsored accounts like 401(k)s, the study said. In tax year 2006, just 14 percent of U.S. households made contributions directly to IRAs, it said.***