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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 Rebecca Moore
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.
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 .