Auto-Enroll, Roth 401(k)s Move Toward Mainstream: Seems it won’t be much
longer before automatic enrollment and Roth 401(k)s are considered the norm
among features that employers offer as part of their retirement plans.
A recent survey of 163 organizations with both defined-benefit and
defined-contribution plans found that 66 percent have either adopted automatic
enrollment or are considering doing so. The adoption rate is lowest (32 percent)
among not-for-profit organizations and highest (88 percent) among financial
services organizations, according to the survey, which was conducted by the
Employee Benefit Research Institute and Mercer Human Resource Consulting.
One-third of the employers surveyed say they have added Roth 401(k) accounts
to their retirement plans. Roth 401(k)s allow employees to contribute part of
their salary on an after-tax basis, and thus not have to pay taxes on the
accounts when they retire.
More large organizations (60 percent) have added the account than smaller
companies (28 percent).
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