Data & Research March 5, 2009

Correlation Exists Between DC Account Size, Rollover Likelihood

When changing jobs, participants with higher account balances are more likely to roll money from a lump-sum distribution into another tax-qualified account.
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A recent report from the Employee Benefit Research Institute (EBRI) said 72.4% of lump-sum distribution recipients of $50,000 or more rolled over their entire balance, versus 17% of those taking distributions less than $500.

Based on participants’ most recent distribution through 2006 from individual retirement accounts (IRAs), annuities, and other employment-based retirement plans, the larger the distribution, the more participants tended to roll over the entire balance. According to EBRI data:

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  • $1 to $499 in lump-sum distribution, 17% of participants opt to roll over balance
  • $500 to $999, 19.5%
  • $1,000 to $2,499, 23.7%
  • $2,500 to $4,999, 32.8%
  • $5,000 to $9,999, 43.9%
  • $10,000 to $19,999, 46.5%
  • $20,000 to $49,999, 52.5%
  • $50,000 or more, 72.4%.

EBRI’s executive summary is available here.


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