For many investors, workplace retirement plans build long-term savings via automatic paycheck deferrals. But most employees don’t make Roth contributions, which can grow tax-free.
Some 86% of retirement plans, such as 401(k)s, offered Roth contributions in 2024, but only 18% of investors with the option participated, according to Vanguard’s 2025 analysis of more than 1,400 qualified plans and nearly 5 million participants.
That’s up slightly from 17% who made a Roth 401(k) contribution in 2023.
One reason for low adoption is that plans typically default to pre-tax contributions, meaning investors must switch to the Roth option, experts say.
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