FYI: Forty years ago, Congress passed the Revenue Act of 1978 and added a single paragraph marked (k) to Section 401 of the Internal Revenue Code. The primary intention was to put more parameters around pretax contributions made to cash-deferred plans. Yet, in fewer than 900 words, Congress inadvertently created what is now a major part of the backbone of retirement in America.
Today, 55 million people are active 401(k) plan participants, according to the Investment Company Institute. More than $5 trillion sits in these accounts—and at least as much has moved through these plans if you include funds rolled over to individual retirement accounts or annuities, or cashed out for retirement.
Regards,
Ted
https://www.barrons.com/articles/the-401-k-turns-40-and-like-all-birthdays-theres-good-and-bad-1542404775
