Aon Hewitt Survey Reveals More U.S. Employers Likely To Add Roth Features To Their Defined Contribution Plans In 2013

LINCOLNSHIRE, Ill., Feb. 6, 2013 /PRNewswire/ -- A new survey by Aon Hewitt, the global human resources solutions business of Aon plc (NYSE: AON), reveals an increasing number of U.S. employers are planning to add Roth features to their defined contribution (DC) plans in 2013. This comes on the heels of new legislation that makes it easier for DC investors to convert balances within their savings plan into Roth accounts.

(Logo: http://photos.prnewswire.com/prnh/20100719/AQ37264LOGO)

Immediately following the passage of the American Tax Payer Relief Act of 2012—or so-called 'fiscal cliff' deal—Aon Hewitt conducted a pulse survey of more than 300 individuals representing large U.S. employers to determine the prevalence of Roth accounts and employers' likely actions with respect to their plans over the next 12 months. According to Aon Hewitt's findings, while almost half (49 percent) of respondents currently offer no Roth provisions, 29 percent of those that don't offer Roth are very or somewhat likely to add this feature in the next 12 months. Of those new adopters, more than three-quarters (76 percent) will add both Roth contribution and in-plan conversion features.

"While employers have steadily been adopting Roth features in recent years, the new law, along with a better understanding of Roth by both participants and companies, will encourage more plan sponsors to add these options in the near-term," said Patti Balthazor Bjork, director of Retirement Research at Aon Hewitt.

Aon Hewitt's survey also found that employers that already have a Roth contribution option are likely to allow employees to make in-plan conversions to Roth accounts. Of those respondents that currently allow Roth contributions but do not offer in-plan conversions, more than half (53 percent) are very or somewhat likely to add this feature in the next 12 months.

1 2 Next › Last »