Unleash the Power of Your 401(k) Plan

retirement 401k speedometer illustration design over a black background

In 1980, Ted Benna, a Philadelphia benefits consultant, noticed that a law passed in 1975 could help employers unburden themselves from the responsibility of providing a lifetime of income to their retirees through qualified defined benefit pension plans. He noticed that paragraph “k” of Section 401 on the Internal Revenue Code could be used by employers to allow their employees to take a salary reduction as a tax-deferred contribution to their retirement plans. That was the beginning of the qualified defined contribution 401(k) retirement plans which shifted the burden of providing for retirement from the employer to the employee. [Read more…]