Benefits May 9, 2008

Merrill Lynch Sees Strong Adoption of Roth 401(k)

May 9, 2008 (PLANSPONSOR.com) - The Merrill Lynch Retirement Group reports that among the 1,700 plans on its proprietary recordkeeping system, almost 200 (12%) had added a Roth 401(k) option as of March 31, 2008.
Reported by

According to a media announcement on Merrill Lynch’s analysis, the feature is particularly popular among professional service firms, including medical practices, law firms, and consulting agencies. There has been a 21% increase in plans adopting a Roth 401(k) feature in the first quarter of 2008, and 25% of those plans were sponsored by professional service firms.

Get more!  Sign up for PLANSPONSOR newsletters.

Other highlights of the analysis, according to the media announcement, include:

  • More than 13,000 participants (6% of those eligible in plans offering the option) are contributing to a Roth 401(k) account. The number of participants contributing is up 37% in the first quarter of 2008.
  • Almost 20% of plans with the Roth 401(k) option have participation rates of 10% or more; 10% of plans have participation rates of 20% or more.
  • Total assets in Roth 401(k) accounts are $70 million, with $28 million contributed in the first three months of this year.
  • The average Roth 401(k) contribution is approximately $5,400.

More about Merrill Lynch is at www.ml.com .

«