Who invented the 401 K?
Ted Benna
Ted Benna, a benefits consultant, is widely credited with creating the 401(k) plan most companies use today. While a provision added to the Internal Revenue Code in 1978 is the basis for 401(k) plans, it was initially used primarily by senior executives who wanted to supplement their pensions.
Where does Ted Benna live?
Now 76, Benna lives on a small farm in rural Pennsylvania, where he and his wife moved 20 years ago to be closer to family and, in the process, “reduce our expenses by probably 50% by relocating from a big house in Philadelphia to a modest ranch-style home,” says Benna, who credits saving in a 401(k) that he …
Where does the inventor of 401k put his money?
It caused quite a stir when the man who is credited with being the “father of the 401(k),” Ted Benna, recently announced that he’s put a substantial part of his own money – “probably the biggest part of my wealth” – into what is most commonly known as a Bank On Yourself plan.
How much money does the average 30 year old have in their 401K?
Ages 20-29 Median 401(k) balance: $4,300. Many of the participants in this age group are new to working and new to saving for retirement. Yet even at this young age, it’s important to prioritize contributing to your workplace retirement plan, especially if your employer matches a portion of your contributions.
Where does the inventor of the 401K keep his money?
Is 401K meant to retire?
Where does that leave future retirees? 401k plans were never intended to be a substitute for a pension. Retirement accounts, specifically 401(k) plans, were never intended to be a substitute for a pension. But, the reality is, most people, if they have a retirement account at all, it’s a 401(k).
What is better than a 401k?
Some alternatives for retirement savers include IRAs and qualified investment accounts. IRAs, like 401(k)s, offer tax advantages for retirement savers. If you qualify for the Roth option, consider your current and future tax situation to decide between a traditional IRA and a Roth.