BOSTON ( TheStreet) -- Only about one out of 10 traditional individual retirement account investors contribute in any given year, according to recent data. But Sarah Holden, senior director of retirement and investor research for the Investment Company Institute, says that statistic belies some good news and sounds subpar only when compared with 401(k) activity."When you look at a 401(k) plan, you are typically are looking at active participants who hold a plan through their employer," she says. "When you go and try to do the parallel calculation with traditional IRAs, what you run into is this wide cross-section of investors who have rolled over employer-sponsored plan assets from a previous job and parked them. It is not that they are not saving for retirement; it is highly likely they have a plan at their new employer and are contributing there. When making comparisons of what kind of contribution activity goes on in a traditional IRA to a 401(k) or other direct contribution plan, from the onset you have his commingling of parked people that just confounds it."
Plenty of IRA Action Amid 'Parked' Assets
Check Out Our Best Services for Investors
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Model portfolio
- Stocks trading below $10
- Intraday trade alerts
Every recommendation goes through 3 layers of intense scrutinyquantitative, fundamental and technical analysisto maximize profit potential and minimize risk.
Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.