The Roth 401(k) has become an increasingly popular option in corporate defined contribution plans, based on Fidelity Investment's quarterly survey that was released last month. As of the second quarter, more than three-quarters of DC plans had a Roth option available.
Roth 401(k) gaining acceptance
Participants have also gravitated to the Roth 401(k) option. While only 13% choose the option when available, this is more the double the rate from a decade ago. Additionally, younger employees have been more apt to use the savings vehicle, with 16% of millennials who have the plan offered to them making contributions compared with 10% a decade ago.