NAPA Net - Polling Places 072222

How About a Roth Option for Employer Contributions?

One of the revenue-raising provisions currently in the EARN (Enhancing American Retirement Now) Act is a provision that would permit an employee to elect to treat employer matching and other employer contributions as after-tax Roth contributions. This week we’d like to know if you think it will catch on?

Now, being in that legislation now – and making it into the final (not to mention the inevitable reconciliation with the version passed by the U.S. House of Representatives) – isn’t a sure bet. But it IS projected to raise some $12 billion in revenue for the government (people opting to pay taxes now with the embrace of a Roth alternative) – and so…well, you just never know.

That said, and with concerns about inflation and future tax rates high, this week we’d like to know if you think (a) plans will offer this and (b) if participants will take advantage.

Question Title

* 1. Generally speaking, would your plan sponsor clients allow/encourage participants to do this?

Some would.

Yes, I think they all would.

I don't see any interest for this kind of thing.

Yes, most would.

A few might - but vast majority wouldn't.

care to expand on that?

Question Title

* 2. Assuming it was offered, do you think there would be participant interest in treating employer matching contributions as after-tax Roth contributions?

None at all

Little

Lots

Some

Other thoughts?

Question Title

* 3. Assuming it was offered, would YOU take advantage?

No way.

Probably not.

Oh, for sure.

Not sure.

Other thoughts?

Question Title

* 4. Other comments about Roth, converting pre-tax contributions to Roth, the complications in providing tax options to participants, the benefits of providing tax options to participants, government accounting on the take up rates of providing tax options to participants, or life in general?

Question Title

* 5. What is your role working with retirement plans?

Advisor

Provider

TPA

Plan sponsor

Recordkeeper

Other (please specify)

Question Title

* 6. What size plans do you PRIMARILY work with?

Under $10 million in assets

$10-$20 million

$20-$50 million

$50-100 million

$100 million - $250 million

$250 million - $500 million

Above $500 million

Other (please specify)

Question Title

* 7. Suggestions for future survey questions?

Question Title

* 8. All responses are anonymous and confidential, of course - but if you'd like me to know who you are, or allow for a response, you can leave your email below...