The 401(k) began as a technical adjustment to the tax code, one meant to mostly impact high-earning executives using profit-sharing plans. People like Benna, a benefits consultant, convinced the Reagan administration that the language of the statute allowed for all employees to put aside a portion of their salaries on a tax-deferred basis. It was supposed to supplement corporate pensions. Instead, in something almost no one foresaw, the 401(k) replaced them.
Original WSJ Article - Paywall
I'm starting to feel like a lot of these scary articles are mostly scary for folks who fall in the "average" or "below average" bucket. For example, those who can't come up with $400 cash if they're in a pinch.
The beauty of this subbreddit is the endeavor to make more folks rise above those ranks and become decidedly above average. Spending less, saving more and being financially prepared for those unexpected incidents.
While they're getting quotes from the pioneers of the 401(k), it seems clear those pioneers underestimated what they needed to squirrel away in order to really make the instrument work.
Submitted January 05, 2017 at 01:09AM by yobroshot http://ift.tt/2iDc4bw
