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By Christine Benz | 10-17-2013 12:30 PM

Vanguard: Investors Could Get More Out of IRAs

Vanguard data show some investors don't take full advantage higher contribution limits or catchup contributions, says Vanguard senior investment analyst Maria Bruno.

Christine Benz: Hi, I'm Christine Benz for Morningstar.com. I recently visited Vanguard, where I sat down with Maria Bruno, a senior investment analyst in Vanguard's investment strategy group. We discussed contribution trends among IRA investors.

Benz: Maria, thank you so much for being here.

Maria Bruno: Good to be here. Thank you.

Benz: I know you and your team have been looking at contribution trends among IRA investors, and you found some really interesting things. One thing that you found is that some people are maxing out their contributions, but some people actually aren't. So, let's talk about the trends there.

Bruno: What we're seeing, I think, is overall positive. We're starting to look at our IRA shareholders to see general trends around contributions and withdrawals. And … we decided to look at, are investors contributing the max? What we found is that over half of the investors are. So we think that's very positive.

Benz: So, in 2013, it's $5,500 and $6,500 for people over 50.

You noted that some people aren't taking note of the new contribution limits and also that people over 50 aren't taking advantage of those catch-up contributions that they're able to take.

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