401(k)

In the United States, a 401(k) plan is the tax-qualified, defined-contribution pension account defined in subsection 401(k) of the Internal Revenue Code. Under the plan, retirement savings contributions are provided (and sometimes proportionately matched) by an employer, deducted from the employee's paycheck before taxation (therefore tax-deferred until withdrawn after retirement or as otherwise permitted by applicable law), and limited to a maximum pre-tax annual contribution of $18,000 (as of 2015).

Other employer-provided defined-contribution plans include 403(b) plans, for nonprofit institutions, and 457(b) plans for governmental employers. These plans are all established under section 401(a) of the Internal Revenue Code. 401(a) plans may provide total annual addition of $53,000 (as of 2015) per plan participant, including both employee and employer contributions.

History

The section of the Internal Revenue Code that made 401(k) plans possible was enacted into law in 1978. It was intended to allow taxpayers a break on taxes on deferred income. In 1980, a benefits consultant named Ted Benna took note of the previously obscure provision and figured out that it could be used to create a simple, tax-advantaged way to save for retirement. The client he was working for at the time chose not to create a 401(k) plan. He later went on to install the first 401(k) plan at his own employer, The Johnson Companies (today doing business as Johnson Kendall & Johnson). At the time, employees could contribute twenty-five percent of their salary, up to $30,000 per year, to their employer's 401(k) plan.

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Latest News for: 401k

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401(k) retirement saving hits a milestone. Has it finally caught on?

Usatoday 19 Apr 2025
How are tariffs and your 401(k) retirement savings intertwined?. Experts say a rise in tariffs can lead to several factors that impact your retirement savings ... Between that year and 2024, however, the participation rate tiptoed up to 50% ...
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Trump’s 'showdown' with the Fed is bad news for anyone with a 401k — here’s ...

Alternet 18 Apr 2025
President Donald Trump is calling for Federal Reserve Chairman Jerome Powell to be fired. In a Thursday, April 17 post on his Truth Social platform, Trump wrote, "Powell's termination cannot come fast enough!" ... READ MORE. 'Bullied into submission' ... Mr ... .
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I retired 24 years ago with $1.3 million saved. Joy in retirement isn't a given ...

Business Insider 17 Apr 2025
This as-told-to essay is based on a conversation with Bill Bengel, 84, a Michigan retiree who stopped working 24 years ago ... His words have been edited for length and clarity. I tell my grandchildren that joy in retirement isn't a given ... Bill Bengel ... ....
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401(k) woes: Market fluctuations and retirement concerns for many

The Cincinnati Herald 16 Apr 2025
By Ronald Premuroso, Western Governors University School of Business. With stock market charts resembling the contours of a roller-coaster ride in recent days, many Americans could be forgiven for eyeing their 401(k)s with a little concern ... ... .
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401(k) plans and stock market volatility: What you need to know

Phys Dot Org 14 Apr 2025
What is a 401(k)? ... Many employers match some or all of an employee's contributions, making the plan even more attractive ... What you need to know (2025, April 14) retrieved 14 April 2025 from https.//phys.org/news/2025-04-401k-stock-volatility.html ... ....
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401K To Gold IRA Rollover Guide Explained Step By Step

MENA FN 11 Apr 2025
(MENAFN - ACCESSWIRE) DALLAS, TX / ACCESS Newswire / April 10, 2025 / The ongoing uncertainty surrounding U.S. tariff policies and an unprecedented stock market crash has contributed to a surge in ... .
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Q\u0026A: Worried about your 401k, investments after Trump's tariffs? Here's some expert advice

Akron Beacon Journal 08 Apr 2025
President Trump calls tariffs 'medicine' as stock market plunges ... Have you checked your 401k balance since President Donald Trump announced widespread tariffs last week on what he called “Liberation Day”?. Chances are, it’s down — maybe way down.
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A wealth manager’s advice amid drops in the stock market

Wtop 08 Apr 2025
The immediate impact of recent tariffs by President Donald Trump’s administration on a list of countries has resulted in turbulent times for Wall Street ... Related stories. Wall Street could be headed for a bear market ... Md. Gov ... Source .
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Amid Trump tariffs market dive, how to handle your 401(k) retirement fund

app 08 Apr 2025
President Trump calls tariffs 'medicine' as stock market plunges. President Donald Trump spent the weekend at a golf tournament in Florida as the stock market continued to plunge ... Stocks have dropped precipitously. There is talk of a looming recession.
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Take these steps to protect your 401(k) amid stock market turbulence

recordonline.com 08 Apr 2025
People on Wall Street react to sinking stocks from tariffs. People on Wall Street reacted to the stock market downturn from Trump's tariffs announcement with a mix of worry and optimism ... What the Trump administration means for your wallet.
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Pro-MAGA host left stunned after Trump's tariff action crashed his 401k: 'I gasped' | Daily ...

The Daily Mail 07 Apr 2025
Newsmax host Jon Glasgow expressed his shock at the effects that President Donald Trump's tariffs were having on his retirement investment savings, in a discussion on tariffs on Sunday ... U.S ... 'Countries from all over the World are talking to us ... ... .
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The 12-year-old investor — How FIRE parents are teaching their kids to be financially savvy

Business Insider 07 Apr 2025
FIRE parents are teaching their children how to get ahead financially, even before they hit double digits ... Oyetunji is one of many parents who have embraced the Financial Independence, Retirement Early (FIRE) movement over the last decade ... ....
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Recession-proof your 401(k): How to secure your retirement accounts as the market drops

The Pueblo Chieftain 07 Apr 2025
People on Wall Street react to sinking stocks from tariffs. People on Wall Street reacted to the stock market downturn from Trump's tariffs announcement with a mix of worry and optimism. Stock markets in the U.S ... Is my 401(k) safe? ... After the U.S.
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