Well we had our 401K meeting with our Guru JP yesterday. The good news in my 401K grew at a decent 16+% last year, the bad news was there will not be a ROTH 401k available through my company any time soon.
JP indicated that due to the double record keeping requirements, additional education requirements for all employees so they could make informed decisions, etc ALL of his 401K client companies decided not to do the ROTH 401k.
He also noted that most of the people participating in the 401k would not gain much from the ROTH option as you can only put a combined $15,500 in the two accounts. He said it was a VERY good deal for younger workers, but they don't contribute much anyway.
I really didn't buy his explanation of this Old versus Young argument. I do think its double the paperwork for the companies, but the bigger problem is that you have to educate your workers so they can make an informed decision between a 401k and a ROTH 401k. There is a liability there if the workers make a bad decision, they can SUE the employer for not providing education.
So in the end the GOOD 401K is the enemy of the BETTER ROTH 401k.
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