Dollar Signs Dollar Signs Dollar Signs Dollar Signs

Rainbow

HISTORY OF THE 401-K PLAN

Dollar Signs
The whole thing started when congress passed the Revenue Act of 1978. They added a section to the tax Code - Section 401, Paragraph (k). The idea was to try to level the playing field of tax benefits in profit-sharing plans between various levels of pay within a company.

Dollar Signs
In 1980, a guy named Ted Benna, who was a pension benefits consultant, found the then-obscure 401-k language when he was working up a revision to a bonus system for one of his clients. He realized that this language could let a company allow its employees to shelter money from federal taxes by contributing it to a plan governed by this part of the Tax Code. Further, it was clear that the employer could offer to put in money on behalf of ONLY THOSE employees who made contributions of their own first, thus the so-called employer match.

Dollar Signs
Mr. Hanna's client didn't buy it!! The client's lawyers were afraid of an untried idea and were not willing to let their client be a test case. Eventually, though, the Internal Revenue Service approved this type of plan, and as they say, the rest is history. Millions of employees, thousands of employers and nearly a TRILLION dollars are now wrapped up in these plans.

Rainbow

| HOME | Opening Bell | Train Wrecks | Gurus - Fallacies | Leaky Faucets | Four Oh One Kays | IRAs - The Grapes of Roth |
| Dollar Cost Averaging | My Portfolio | Opinions - Yours, Mine and Ours | Surgeon General's Warnings | Mutual Funds |
| Plastic Surgery | Infernal Revenue Service | Financial Planners - Our View | Investment Scams | Closing Bell |
| Disclaimers | Monthly Payment Calculator | Links - General | Links - Kids, Teens and Young Adults | On the Lighter Side |

We belong to all the following
Paid To Click programs!!!
We have received a LOT of payments from them!!
We are recommending only these as we have tried others
but they had problems of one kind or another...
We invite you to join..some have signup bonuses!!!

MardiGrasCash

BIRD CRAZY MAIL

DRIVING CASH

TOTALLY-DUH GET PAID

Play this game EVERY DAY !!!
Try aLottery.com It's FREE

PLAY LOTTA FUN LOTTO!!
A 6/35 Weekly Lotto Game - FREE

Click Here!





Page Hit Counter

14-11102005