Go beyond a basic 401(k)

Go beyond a basic 401(k)

Give your employees more than just a 401(k), join the movement.

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401(k) fun facts

March 15, 2017
1 min read
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One of our clients recently asked us for some “fun facts” about the 401(k) that he could share in his company’s employee newsletter. We thought that was such a fun exercise that we are sharing some of these facts here!

The following is not intended to represent any financial or tax advice, it is merely for fun:

  • The 401(k) is named after the section of the tax code that first(and some would say accidently) created them, the Revenue Act of 1978. At least it’s not the full name of the legal code, which is something like: Title 26 › Subtitle A › Chapter 1 › Subchapter D › Part I › Subpart A › § 401.
  • 401(k)’s were “accidentally” discovered by a benefits consultant in 1980; before that, no one really knew the tax code could be used in the way it is today!
  • In 1981 the IRS issued guidance that allowed the funding of 401(k) plans through employee salary reductions, and helped make them what they are today.
  • The 401(k) is the most popular defined contribution retirement plan in the US, followed by the 403(b) (which is used by some non-profits).
  • 401(k) withdrawals become mandatory when you reach 70 and 1/2 years old, so if you are there, maybe it’s time to take the grandkids to Disney World! (Just an idea, you should probably consult with a financial advisor before spending a lot of your retirement account on a vacation.)

Did we miss any good ones?

Go beyond a basic 401(k)
Go beyond a basic 401(k)

Give your employees more than just a 401(k), join the movement.

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David Ramirez - CEO at ForUsAll
Healy Jones

Go beyond a basic 401(k)

Give your employees more than just a 401(k), join the movement.

Happy employees with a 401(k) they deserve offering more choice more growth.
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This material has been prepared for informational and educational purposes only and should not be construed as a recommendation by ForUsAll, Inc., its affiliates or employees (collectively, “ForUsAll”)  to activate a cryptocurrency window or invest in crypto.  Investing in crypto can be risky and investors must be able to afford to lose their entire investment.  You should consult with your own advisers before activating a cryptocurrency window or investing in crypto.  ForUsAll does not provide legal, tax, or accounting advice. Please refer to your Plan's fee disclosure for more details.© 2023 ForUsAll, Inc. All rights reserved.
1 Schwab 2022 401(k) Participant Study - Gen Z/Millenial Focus, October 2022.
2 As of 12/31/2022. Employees include both current employees and terminated participants with a balance.
3 "Morgan Stanley At Work: The Value of a Financial Advisor" Morgan Stanley, March 2022.
4 Sarah Britton was a client when she provided this testimonial through an independent third party review website. She received no compensation for her remarks. There are no known conflicts of interest in the provision of her comments related to the services provided.