US. People Now Have Much More Money in IRAs than 401(k)s. Why That Leaves Workers More Vulnerable.
The most extraordinary development in the U.S. private sector retirement system is not the shift away from old-fashioned defined benefit plans, which began around 1980 and is virtually complete today, but rather the movement away from 401(k) plans, which replaced the defined benefit plans, to Individual Retirement Accounts (IRAs). Total IRA assets now exceed the money in 401(k)s by $7 trillion (see Figure 1). The shift from 401(k)s to IRAs moves the employees’ money to a different regulatory environment. 401(k)...
