The Revenue Act of 1978, specifically Section 401(k) of the Internal Revenue Code, is the foundation for 401(k) plans. This law, signed into effect in 1978, introduced a way for employees to defer compensation on a tax-advantaged basis. While the law itself was enacted in 1978, the regulations and IRS rules that allowed employees to contribute to 401(k) plans through salary deductions were not finalized until 1981.
Yes, 1 in 5 Americans aged 65 and older are still working, according to data from the Pew Research Center, LendingTree, and other sources. This trend has been on the rise, with the share of older adults in the workforce nearly doubling since the mid-1980s. Reasons for this increase include factors like better health, increased education, and the desire for financial security or social interaction.
Is the 401K a failed experiment? Is work the new retirement and who is to blame? The 401(k) has proven to be a failed experiment. It’s time to recognize that work has become the new retirement, and we must confront those responsible for this shift.
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