401(k) plans were created a little more than 40 years ago, when Congress passed the Revenue Act of 1978. Included in the Act was a new section in the Internal Revenue Code – Section 401(k) – that allowed employees to avoid paying taxes on contributions to their retirement savings from salaries, bonuses, and other forms of compensation.
401(k) plans were intended to help Americans to save more money for retirement. But can they also help more Americans actually retire early? We believe they can.