2012 Hot Topics in Retirement - Aon

22 Aon Hewitt
Requirements Needed to O�er Roth
Requirements
It must be clear that general Roth participant
usage will be significant enough to justify
adding it to the plan
Nothing—not interested in o�ering a Roth at
this time
The administrative complexity and/or cost of
o�ering a Roth must be reduced
Employees must ask for it
There must be access to better tools and
resources to e�ectively manage the complexity
of Roth communication
Interested in o�ering a Roth in the future,
but it is not a priority in 2012
Other
(n=159; multiple responses)
Percentage of Plans
40%
40%
30%
25%
23%
18%
New rules now allow the conversion from a qualified plan or a traditional IRA
to a Roth IRA without any income limits. Nearly half of employers (48%) with
the Roth feature allow for in-plan rollovers or conversions of before-tax and
after-tax balances into the Roth account.
In-Plan Rollovers/Conversions of Roth Contributions
Plans to adopt in the next year
10%
No plans to adopt
42%
Adopted
48%
(n=156)
4%