Education and health care retirement plans are using more target date funds and Roth features in their plans, according to the latest 403(b) plan sponsor survey from the Plan Sponsor Council of America (PSCA).
Specifically, the survey found that nearly three fourths (72.5%) of plan sponsors offer target date funds as an investment option last year, an increase from 69.1% in 2010. The survey also revealed that the number of 403(b) plans permitting Roth after-tax contributions has doubled in the past four years. In 2011, 21.7% of 403(b) plans allowed Roth contributions, up from 16.9% in 2010 and 10.9% in 2007.
