The father of the 401(k)
CBS America · New
CBS America
New
In 1981, Ted Benna created the first 401(k) plan, which allowed corporations to contribute, tax-free, to workers' retirement accounts. That allowed companies to get out of the pension business, but gave employees more responsibility over their retirement funds.
Breakdown
- Ted Benna is credited with creating the first 401(k) plan in 1981. 52s
- The 401(k) originated from a 1978 tax code revision allowing tax-free corporate contributions to retirement accounts. 1m 16s
- The 401(k) has largely replaced traditional pensions, shifting retirement planning responsibility to employees. 1m 34s
- Recent legislation has introduced auto-enrollment and automatic contribution increases to make 401(k) participation easier. 2m 37s
- Despite his role, Benna rolled his own 401(k) into an IRA and continues to work beyond typical retirement age. 3m 36s