The ranks of employers offering a Roth savings option to 401(k) investors continue to grow, giving more workers access to its unique financial benefits.
About 88% of 401(k) plans allowed employees to save in a Roth account in 2021, up from 86% in 2020 and from 49% in 2011, according to the Plan Sponsor Council of America. The trade group surveyed more than 550 employers across a range of sizes.
A Roth is a type of after-tax account. Workers pay taxes up front on 401(k) contributions, but investment growth and account withdrawals in retirement are tax-free. This differs from traditional pre-tax savings, whereby workers get a tax break up front but pay later.
88% of employers offer a Roth 401(k) — almost twice as many as a decade ago. Here’s who stands to benefit
- by: Greg Iacurci
- 12-16-2022
- Source:
CNBC
- 12/16/2022
Start Thinking About Your Retirement by Marco Verch Professional P is licensed under flickr Attribution 2.0 Generic (CC BY 2.0)
Start Thinking About Your Retirement by Marco Verch Professional P is licensed under flickr Attribution 2.0 Generic (CC BY 2.0)
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