How Do Roth Versus Traditional IRA Savers Compare?

Roth, IRA,

Who invests in what?

IRAs were a good idea—that’s the obvious but important finding from two new reports released by the Investment Company Institute.

The research provides detail on the typical age of investors in both traditional and Roth accounts, how they begin saving in IRAs, and differences in asset allocations between owners of the two.

“Though there are significant differences between traditional and Roth IRA investors, both provide savers with flexibility and diversification in their retirement savings options,” Sarah Holden, ICI senior director of retirement and investor research, said in a statement. “Traditional IRAs are a popular option for savers who are looking to roll over a workplace retirement plan account, while Roth IRAs are often started with contributions. Both IRAs have options that appeal to workers in various stages of their lifetime savings cycles and help millions of Americans prepare for retirement.”

Key findings from the reports include:

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