More than half of companies that sponsor 401(k) plans will consider adding Roth 401(k) features now that the Pension Protection Act of 2006 has made the Roth provisions permanent, according to a survey of 429 companies released today by the Profit Sharing/401(k) Council of America. Twenty-two percent of plans offered Roth features as of Feb. 2, and 61.4% of plans that don't currently offer Roth features are considering it. In addition, 69% of the plans that aren't offering Roth features said the law had increased the likelihood that they would offer a Roth plan in the future.
According to the survey, about 8% of eligible employees working for the companies that offered Roth accounts made contributions in 2006.
More than half the companies that don't currently offer Roth 401(k) plans cited lack of participant demand and additional administrative and educational burdens as key reasons.