Business Development


Do 401(k) Advisors Care About Rollovers?

Half of all advisors with a 401(k) plan practice are actively pursuing the opportunity to generate Rollover IRAs from departing plan participants—50% say they “make a special effort” to do so. That percentage is smallest among heavy advisors (those deriving at least 60% of their practice income directly from 401(k) plans). Heavy advisors, after all, are mainly interested in selling and servicing these plans and may not have any retail business.

Among advisors who do make a special effort, the average minimum size rollover balance they pursue is $107,000, although 50% of these advisors report a minimum of less than $50,000. The average rollover generated is about $195,000 and the average number of rollovers from 401(k) plans is 18 per year, according to separate Brightwork research. That yields about $3.5 million of new IRA assets annually for these advisors.

Not bad. But consider also that larger ticket IRA rollovers are often associated with more affluent participants at or near retirement. This serves as a gateway to the retirement income discussion and to consolidation of various other retirement plan and retail assets.

Makes a Special Effort

By 401(k) Share of Income

Do you make a special effort to develop IRA rollover business from participants leaving 401(k) plans you advise, or don't you?

About the Research

These findings are based on telephone interviews with a representative crosssection of 628 advisors deriving income from 401(k) plans conducted in waves between June, 2010 and May, 2011.

About Brightwork Partners, LLC

Delivering both multi-client and custom studies, Brightwork is a research-based consulting firm with a special focus on investment, product and distribution issues in the retirement services industry;

For more information: Merl W. Baker or Ronald L. Bush, 203.487.2000;,







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