Employee Benefits Systems Give Rise to the 401k

Employee benefits systems gave rise to the standard 401k, then the Roth 401k. A brief history and topical list follow.

History of Employee Benefits Systems and the Birth of the 401k

Contemporary employee benefits systems have given rise to the 401k, a relatively new kid on the pension block.

The Revenue Act of 1978 included a provision that became Internal Revenue Code (IRC) Sec. 401k, for which the plan is named. The 401k is a defined contribution plan offered by an employer to its employees.

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This section of retire2enjoy.com covers the following topics pertinent to the 401k species within employee benefits systems.

How the 401k Differs from the Defined Benefits Pension Plan

The Road from Defined Benefit to Defined Contribution Employee Benefits Systems

The Employee’s Plight as a Retirement Income Planner

401k Contributions 2011 and Their Limits

The Standard 401k vs. the Roth 401k

Taxes on the Standard 401k vs. the Roth

Which Is Better for You? The Standard 401k or the Roth?

The SEP IRA, for the Self Employed, and the 403b Rules for Withdrawals from 401k

Early 401k Withdrawals not Subject to Penalty

What To Do with a 401k after Leaving a Job: IRA Rollover from 401k

Withdrawing from 401k Accounts upon Retirement

Good vs. Bad Employee Benefits Systems

What Is 401k Failure All About?

The 401k and Employee Benefits Systems at British Petroleum

New Focus on What Is Retirement Income

Typical Retirement Savings

Average Savings for Retirement

Fraud in Employee Benefits Systems

History of the 401k Continued

Employees are allowed to set aside tax-deferred income for retirement purposes. In some cases employers will match their contribution, either fully or fractionally. In the standard 401k, employees are not taxed on the portion of income they elect to contribute.

The law went into effect on Jan. 1, 1980. By the time full regulations were issued in November of 1981, nearly half of all large American firms were either offering a 401k plan to their employees or had such plans under consideration. Since then, the 401k has been the fastest growing type of retirement plan in the United States.

Topic: The 401k

Subtopics: Defined Benefits vs. 401k • From Defined Benefit to Defined Contribution • Not Retirement Income Planners • 401k Contributions 2011 • Standard 401k vs. Roth • 401k Taxes • Which Is Better for You? • SEP & 403b • Rules for Withdrawals from 401k • Penalty Exceptions • IRA Rollover from 401k • Withdrawing from 401k Accounts at Retirement • Good Employee Benefits Systems • Company Pension in the News • BP Employee Benefits Systems • Process vs. What Is Retirement Income • 401k: A Boon for Typical Retirement Savings • Average Savings • Pension Fraud