Making the Case Against the 401(k)
The Investopedia Express with Caleb Silver
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Unintended Consequences of the 401k Law
The 401k law, which came into effect on January 1, 1980, was initially seen as an opportunity for employers to create tax-advantaged accounts for their employees. Ted Benna, a benefits consultant, initiated the idea of putting employees into this plan. However, it unexpectedly became the primary way people save for retirement. The IRS issued rules in 1981 that allowed employees to contribute to their 401k plans through salary deductions, leading to the rapid adoption of 401k plans in the early 1980s.
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