"Roth 401(k) Adoption Surges as Secure 2.0 Sparks Worker Interest"
More employers are offering Roth 401(k) options in their retirement plans, with 89.1% of employers allowing workers to contribute to a Roth account in 2022, up from 58.2% in 2013. However, only 21% of workers are taking advantage of this option, with 72% still saving in a traditional pre-tax account. The recently passed retirement law, Secure 2.0, is expected to increase Roth uptake by requiring catch-up contributions to be made to Roth accounts for high-income workers. Employers are also starting to offer their company match in a Roth account. Financial advisors recommend considering Roth contributions for investors in a lower tax bracket now than in retirement, and for young workers with their highest-earning years ahead. Roth savings also have additional benefits, such as avoiding required minimum distributions and reducing Medicare Part B premiums.