Employee retirement readiness is at the forefront of plan sponsor concerns. As a result, many plan sponsors are adding the option for Roth 401(k) contributions of their plan. Roth 401(k)s were first introduced in 2006, and while the adoption rate by employers was initially slow, it has since skyrocketed. As many as 70% of 401(k) plans now offer Roth 401(k) options, alongside the traditional 401(k). While the Roth 401(k) option is not for everyone, plan sponsors should consider providing this option to give employees additional retirement savings options. Having this feature as part of the employee benefits package will make your 401(k) plan more attractive and will allow your organization to remain competitive to attract and retain top talent. We have outlined important points to keep in mind if you’re considering adding a Roth 401(k) option to your plan.
