According to a survey of 429 plan sponsors conducted by the Profit Sharing/401k Council of America, 22 percent of 401(k) plans currently offer Roth designated accounts. Size trends in Roth 401(k) implementation are evident, with smaller companies adopting the Roth feature at a higher rate than larger companies. Among plans offering Roth accounts, approximately 8 percent of eligible employees made Roth contributions in 2006.

For companies that do not offer Roth accounts, 61 percent are either planning to add or are considering adding them in the future. Concerns about Roth accounts vary, with small companies most frequently citing lack of demand and large companies most frequently citing concerns about the additional education that would be necessary.

The majority of companies that do not offer Roth accounts indicated that the permanency provided by the Pension Protection Act has increased the likelihood that they will adopt them in the future.

Source: Roth 401(k) Survey 2007, conducted by the Profit Sharing/401k Council of America, 20 N. Wacker Drive, Suite 3700, Chicago, IL 60606; telephone: 312-419-1863