88% of employers give a Roth 401(k) — just about twice as numerous as a ten years in the past. Here’s who stands to profit

Important Factors

About 88% of 401(k) designs permitted workforce to help save in a Roth account in 2021, nearly double the share a decade earlier, in accordance to the Strategy Sponsor Council of The usa.
Just about 28% of personnel participating in a 401(k) prepare produced Roth contributions in 2021, up from 18% in 2016.
Roth is a variety of soon after-tax savings. It typically helps make most feeling for younger workers, who are likely to pay out a decrease tax amount now than in retirement. Other folks may perhaps desire to split their contributions concerning Roth and pre-tax as a hedge.

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