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New benchmark study from Plootus demonstrates how individual retirement accounts serve as vital wealth drivers, while highlighting key 2026 contribution limits and tax strategies.
NEW HAVEN, Conn. - Hartok -- Plootus today released its Average IRA Balance by Age Report, utilizing 2025–2026 retirement data from Vanguard, Fidelity, and the IRS. Across all age groups, the average IRA balance stands at $127,534, while the average Roth IRA holds $80,386.
Balances increase steadily with age, rising from $28,400 for savers aged 25–34 to $329,800 for pre-retirees aged 55–64. Plootus analysis shows that consistently maxing out a Roth IRA ($7,000 annual limit in 2026) from age 25 to 65 at a 7% average return builds roughly $1.5 million in tax-free wealth.
"IRAs provide critical investment control outside of workplace retirement plans," said the Plootus Research Team. "For younger workers, the Roth IRA is arguably the single most effective tool for building tax-free wealth."
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Key Findings:
The report guides savers on choosing between Traditional and Roth IRAs, implementing Backdoor Roth conversions, and executing multi-year withdrawal strategies to prevent tax bracket creep during Required Minimum Distributions (RMDs) starting at age 73.
"An IRA isn't just a supplement to your 401(k)—it's your personalized tax management vehicle," concluded the Plootus Research Team. "Structuring contributions early minimizes lifetime tax obligations."
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The full report is available at https://www.plootus.com/average-ira-balance-by-age.
ABOUT PLOOTUS
Plootus is a free, AI-powered retirement planning platform that helps Americans analyze and optimize their 401k, 403b, 457, and other workplace retirement plans.
Analyze Future LLC (dba Plootus) is a registered investment adviser with the U.S. Securities and Exchange Commission (SEC). Registration does not imply a certain level of skill or training.
Disclaimer: Analyze Future LLC (dba Plootus) may receive compensation for referrals to third-party products and services listed on its Partners page. These referrals are for informational purposes only and do not constitute an endorsement or recommendation. Plootus has not conducted due diligence on, nor assumes responsibility for, any third-party offerings. Users are encouraged to evaluate these options independently before making any decisions.
Balances increase steadily with age, rising from $28,400 for savers aged 25–34 to $329,800 for pre-retirees aged 55–64. Plootus analysis shows that consistently maxing out a Roth IRA ($7,000 annual limit in 2026) from age 25 to 65 at a 7% average return builds roughly $1.5 million in tax-free wealth.
"IRAs provide critical investment control outside of workplace retirement plans," said the Plootus Research Team. "For younger workers, the Roth IRA is arguably the single most effective tool for building tax-free wealth."
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Key Findings:
- National IRA Averages: Overall average IRA balance is $127,534; average Roth IRA balance is $80,386.
- Age Benchmarks: Median IRA balances sit at $25,000 (ages 25–34), $122,000 (ages 45–54), and $202,000 (ages 55–64).
- 2026 Contribution Limits: $7,000 for individuals under age 50; $8,000 for age 50+ catch-up.
- Tax Phase-Outs: Single Roth IRA phase-out begins at $153,000 MAGI; Backdoor Roth IRA strategies remain available for higher earners.
The report guides savers on choosing between Traditional and Roth IRAs, implementing Backdoor Roth conversions, and executing multi-year withdrawal strategies to prevent tax bracket creep during Required Minimum Distributions (RMDs) starting at age 73.
"An IRA isn't just a supplement to your 401(k)—it's your personalized tax management vehicle," concluded the Plootus Research Team. "Structuring contributions early minimizes lifetime tax obligations."
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The full report is available at https://www.plootus.com/average-ira-balance-by-age.
ABOUT PLOOTUS
Plootus is a free, AI-powered retirement planning platform that helps Americans analyze and optimize their 401k, 403b, 457, and other workplace retirement plans.
Analyze Future LLC (dba Plootus) is a registered investment adviser with the U.S. Securities and Exchange Commission (SEC). Registration does not imply a certain level of skill or training.
Disclaimer: Analyze Future LLC (dba Plootus) may receive compensation for referrals to third-party products and services listed on its Partners page. These referrals are for informational purposes only and do not constitute an endorsement or recommendation. Plootus has not conducted due diligence on, nor assumes responsibility for, any third-party offerings. Users are encouraged to evaluate these options independently before making any decisions.
Source: Analyze Future LLC
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