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Ted Benna was among the first to establish a 401(k) plan, creating it at his own employer, the Johnson Companies (today doing business as Johnson Kendall & Johnson). [ 7 ] [ 8 ] Benna was trying to reduce the taxes due on an deferred-compensation bonus plan for bank executives, at a time when the top marginal income tax rate was 70%. [ 9 ]
But that investment vehicle, beloved by employers across the U.S., is still a relatively new invention and a political “fluke,” according to Ted Benna, and he should know—he invented it ...
Ted Benna has been called the “father of the 401(k)” after he proposed a reinterpretation of a 1978 tax law and implemented it within his own company. The IRS picked up on his trailblazing ...
Ted Benna is considered the “father of the 401(k),” thanks to his redesign of the popular investment vehicle back in 1978 — a design that’s still used today.
Remember that just because the employer's individual 401k plan can include contributions that depend on profits, that doesn't make a 401k a profit-sharing plan, just as the fact that your 401k could involve investments in bonds, does not mean you can say "A 401(k) is a bond investment account."
The "401(k)", the most popular retirement savings plan in American history, was created by the signing into law of the Revenue Act of 1978, an amendment of the U.S. Internal Revenue Code. Three weeks later, an enterprising lawyer, Ted Benna, outlined the first plan to take advantage of the provisions of 26 U.S. Code § 401 [ 7 ] , which ...
But a few years after the law was passed, Ted Benna, a retirement benefit consultant at a small Pennsylvania-based firm, began advocating for the 401(k) as a retirement savings vehicle.
The Roth 401 (k) is a type of retirement savings plan. It was authorized by the United States Congress under the Internal Revenue Code, section 402A, [1] and represents a unique combination of features of the Roth IRA and a traditional 401 (k) plan. Since January 1, 2006, U.S. employers have been allowed to amend their 401 (k) plan document to ...