Question: Following a recent educational campaign, employee uptake of the Roth contribution option in our workplace retirement plan increased to just over 20%. How does this compare with the industry average?
Answer: According to Vanguard’s “How America Saves 2024,” 82% of employers offer a Roth 401(k) option in addition to a traditional 401(k) option. However, just 17% of employees contribute to a Roth. While offering a Roth option in your workplace retirement plan makes great sense, employees may not take advantage of it without a little nudge. Implementing an education campaign focusing on Roth versus traditional options is a great way to promote awareness and give your employees an informed choice.
