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Writer's pictureSteve Martin

Roth 401ks Catch on With Young, Less Wealthy

Whether it is better for you to use a Roth or Traditional 401k or IRA depends on many factors.  It is worth having a discussion with your financial planner about this.

Steve

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As Roth 401k plans continue to spread, young workers increasingly are voting to go Roth. In the first quarter of 2013, 10% of all participants in Wells Fargo-administered defined contribution plans contributed to a Roth 401k, when available, up from 8.9% a year earlier. Leading the way were employees under age 30: 16.9% chose the Roth route, a jump from 15.2% participation in last year’s first quarter. Only 4% of participants in their 60s chose the Roth version this year.

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