The Profit Sharing/401k Council of Americas newly released survey on the 2006 plan year shows that 41.3% of 401(k) plans offered automatic enrollment. In addition, 18.4% of plans permitted Roth 401(k) contributions, with 11.6% of eligible participants using the option.
Company contributions averaged 4.7% of payroll, according to the survey of 1,000 plans with a total of more than $600 billion in assets. Employer contributions were highest in profit-sharing plans an average 9.2% of pay and lowest in 401(k) plans an average 3% of pay.
Matching contributions were immediately vested in 39.5% of plans, and other contributions were immediately vested in 20% of plans.
Catch-up contributions for participants older than 50 were allowed in 98% of the plans, and 31% of those plans offered a match.
401(k) plans provided an average of 19 investment options in 2006, up from 18 in 2004 and 17 in 2003, the other years for which PSCA had data. The typical plan had about 70% of assets invested in equities, with active domestic equity mutual funds being the most used, at 30.6% of total assets.
Overall, 77.7% of eligible employees had 401(k) balances last year, and pre-tax deferrals averaged 5.4% of pay for non-highly compensated workers and 6.9% of pay for highly compensated workers.