88% of employers offer a Roth 401(k) — almost twice as many as a decade ago. Here’s who stands to benefit
Maskot | Maskot | Getty Images The ranks of employer s offering a Roth savings option to 401(k) investors continue to grow, giving more workers access to its unique financial benefit s. About 88% of 401(k) plans allowed employees to save in a Roth account in 2021, up from 86% in 2020 and from 49% in 2011, according to the Plan Sponsor Council of America. The trade group surveyed more than 550 employer s across a range of sizes. A Roth is a type of after-tax account. Workers pay taxes up front on 401(k) contributions, but investment growth and account withdrawals in retirement are tax-free. This differs from traditional pre-tax savings, whereby workers get a tax break up front but pay later. Roth uptake by employees has grown, too. Almost 28% of workers participating in a 401(k) plan made Roth contributions in 2021, up from 18% in 2016, according to the PSCA. By comparison, 80% of participants made traditional, pre-tax contributions. (Workers can opt to use either, or both.) "It...