Savings and Investments

Investing For Retirement

When did 401k plans start?

They began in 1978, when Congress revised a section of the Internal Revenue Code by adding a section called 401(k), whereby employees would not be taxed on income that they direct as deferred, but only on their direct income they receive today. In effect, we could set aside a portion of our income and not pay any taxes on it until we retire. The law went into effect in 1980.


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