In 2023, around 93% of 401(k) plans offered a Roth account, compared to 89% in 2022 and 62% a decade ago. Despite this increase, only 21% of eligible workers contributed to Roth accounts. Roth contributions, which are taxed upfront, differ from traditional pretax contributions, which provide immediate tax breaks. Financial advisors generally recommend Roth accounts for younger workers in lower tax brackets. Upcoming legislative changes from the Secure 2.0 Act will likely force more 401(k) plans to offer Roth contributions for high earners, making Roth options increasingly common in workplace retirement savings.
