Go up to a group of your employees right now and ask them if they’re interested in a Roth rollover feature for their retirement account. Chances are, you’ll get a few confused glances and a lot of shrugged shoulders.

A recent Mercer survey shows that employees are pretty disinterested in Roth rollover options — and thus, so are employers.

According to the poll of some 300 DC plan sponsors, despite the recently enacted Small Business and Infrastructure Jobs Tax Act allowing for in-plan Roth conversions, more than half (54%) of respondents say that employees have not asked about the feature.

With such lukewarm interest, Mercer finds that fewer than one-third (31%) of sponsors plan to allow Roth conversions by the end of 2011, and close to one-quarter (24%) plan to add the feature at some undetermined time in the future.
Among employers who plan to wait, the majority say they will see what other plan sponsors do (23%) and whether plan participants express interest (37%).

They may be smart to wait — 79% of those currently allowing Roth contributions say that less than 10% of plan participants use the feature.

So, what about you? Is your team or your employees particularly raring to go on Roth rollovers, or are you taking the same steady-as-she-goes approach as the Mercer respondents? Share your thoughts in the comments.

Register or login for access to this item and much more

All Employee Benefit News content is archived after seven days.

Community members receive:
  • All recent and archived articles
  • Conference offers and updates
  • A full menu of enewsletter options
  • Web seminars, white papers, ebooks

Don't have an account? Register for Free Unlimited Access