MFs in Retirement Plans Jump to $810B
The Investment Company Institute published, "Retirement Assets Total $40.0 Trillion in Second Quarter 2024," which includes data tables showing that money market funds held in retirement accounts jumped to $810 billion (up from $779 billion) in the latest quarter, accounting for 13% of the total $6.092 trillion in money funds. MMFs represent just 6.3% of the total $12.789 trillion of mutual funds in retirement accounts. This release says, "Total US retirement assets were $40.0 trillion as of June 30, 2024, up 1.3 percent from March. Retirement assets accounted for 32 percent of all household financial assets in the United States at the end of June 2024. Assets in individual retirement accounts (IRAs) totaled $14.5 trillion at the end of the second quarter of 2024, an increase of 1.5 percent from the end of the first quarter of 2024. Defined contribution (DC) plan assets were $11.3 trillion at the end of the second quarter, up 1.9 percent from March 31, 2024. Government defined benefit (DB) plans—including federal, state, and local government plans—held $8.5 trillion in assets as of the end of June 2024, a 0.5 percent increase from the end of March 2024. Private-sector DB plans held $3.2 trillion in assets at the end of the second quarter of 2024, and annuity reserves outside of retirement accounts accounted for another $2.4 trillion." The ICI tables also show money funds accounting for $604 billion, or 10%, of the $6.290 trillion in IRA mutual fund assets and $205 billion, or 3%, of the $6.499 trillion in defined contribution plan holdings. (Money funds in 401k plans totaled $138 billion, or 3% of the $5.159 trillion of mutual funds in 401k's.)
