Beginning March 29: To help insurance agents and financial advisors like you guide clients in making critical wealth, health and life decisions we will be moving our coverage from to

Our comprehensive coverage will help you expand your knowledge base and adapt a new client-centric approach that incorporates both insurance and investment solutions.

ThinkAdvisor’s new Life/Health channel is your roadmap to thriving in a disrupted environment.


Filed Under:Life Insurance, Life Planning Strategies

NAGDCA: Few gov’t plan participants contribute to a Roth

Nearly one in three government-sponsored defined contribution plans feature a Roth individual retirement account and 10 percent boast in-service Roth conversions, but less than 5 percent of plan participants contribute to a Roth account, new research shows.

The National Association of Government Defined Contribution Administrators, discloses this finding in a survey of 136 government defined contribution plans covering 1.9 million active participants. Most of the plans examined are 457 plans, but they also include 401(k) plans, 401(a) plans and 403(b) plans.

The report reveals that, as of December 31, 2012, 89 responding governmental 457 plans had assets valued at more than $103.3 billion. The state 457 plans with the largest asset bases are New York ($14.1 billion) and Ohio ($9.1 billion). The largest local plans responding to the survey are New York City ($10.4 billion) and Los Angeles ($3.6 billion).

The report adds that 12 responding governmental 401(k) plans had assets valued at more than $18 billion at year-end 2012. Of the total, 9 of the plans held $16 billion in assets. The largest state 401(k) plan is the California Savings Plan, with $4 billion in assets. And the largest local 401(k) plans is Los Angeles County, which has $1.8 billion in assets.

When asked if their plan was considering adding a guaranteed retirement income solution within the next year, more than half (56 percent) of the survey respondents answered no. More than a quarter (26 percent) answered they already have one, 11 percent answered that they were, but not in the coming year, and 7 percent said yes.

However, most of the responding plans that offer a guaranteed retirement income product report that less than one percent of participants use it. Retirees use the guaranteed retirement income solution more than active participants.

Of the responding plans, the survey adds, the following types of plans are offered:

Target-date funds (offered by 82 percent of plans)

● balanced funds (55 percent)

● Target-risk funds (24 percent)

● Funds of funds (17 percent)

● No default fund requiring active investment allocation at enrollment (28 percent)

Featured Video

Most Recent Videos

Behind the scenes with Vicki Gunvalson [VIDEO]


In this exclusive interview, Vicki Gunvalson shares how she built a $15 million a year annuity business by planning for...

Regulator: Market may need to reinvent LTCI


Cioppa says Maine's governor wants to spur the creation of better products.

Dementia: It's more than Alzheimer's


An association calls for policymakers to remember lesser-known neurodegenerative conditions.

Protesters Disrupt WellPoint Annual Meeting


Hecklers call for more disclosures of information about political contributions.

Related resources

More Resources


Power your business with up-to-the-minute insurance news, analysis, and best practices from LifeHealthPro Daily eNewsletter – FREE.

Power your business with LifeHealthPro Daily eNewsletter – FREE.

Enter a valid email address.
Nichole Morford

Nichole Morford
Managing Editor

Thank you for subscribing to LifeHealthPro Daily!

Check Out More eNewsletters Now! Close

Advertisement. Closing in 15 seconds.