Does your company offer a Roth 401(k)?
These tax-advantaged retirement savings accounts combine many of the benefits of a traditional 401(k) plan and a Roth individual retirement account — with a few major differences, too.
While Roth 401(k) plans have been around since 2006, many companies only recently are starting to offer them as an option for employees. A 2015 analysis by benefits consulting firm Aon Hewitt found 58 percent of employers included Roth 401(k) plans in their offerings, up from just 11 percent in 2007. It also showed workers are increasingly using these accounts, and contributing to them at an average rate of 10.5 percent, three percentage points higher than contributions to traditional 401(k) counterparts.