Participation in 401(k) plans dropped to 70% in 2005 from 80% in 1999, according to a Spectrem Group survey. The 401(k) deferral rate declined 20% over the same period, falling to 6.9% in 2005 from 8.6% in 1999, confirmed Sharon Bially, spokeswoman for Spectrem. Asset growth was projected at 4% in 2005, down from 10% in 2004, according to the survey. Spectrem surveyed 500 plan sponsors.
Seventy percent of plan sponsors indicated they are unlikely or very unlikely to implement a Roth 401(k) plan, according to the survey. Plans offered an average of 13.3 investment options, and only 14% of sponsors planned to add new options in the next 12 months.