Roth 401(k)s catch on with younger investors

From the current issue of Financial Planning magazine:

As Roth 401(k) plans continue to spread, young workers increasingly are voting to go Roth. In the first quarter of 2013, 10% of all participants in Wells Fargo-administered defined contribution plans contributed to a Roth 401(k), when available, up from 8.9% a year earlier. Leading the way were employees under age 30: 16.9% chose the Roth route, a jump from 15.2% participation in last year’s first quarter. (Only 4% of participants in their 60s chose the Roth version this year.)

The rate at which government debt is rising and the belief that future tax rates may be higher than they are today, saving in a Roth plan which allows people to withdraw money tax-free is becoming increasingly attractive.

Tagged , , ,
%d bloggers like this: