401(k) Plan: 20 Years of Building Retirements
Investor's Business Daily (10/27/00) Vol. 104, No. 42 p.B1; McKenna, Peter

Twenty years ago, Ted Benna invented the 401(k) plan in an effort to help middle- and lower-income workers save for retirement; now, over 78 percent of U.S. employees are enrolled in 401(k)s, and the plans' total assets hit $1.7 trillion this year. Employee Benefit Research Institute research analyst Ken McDonnell notes that the 401(k) has been an effective savings tool and has changed the investment landscape, giving employers a less-expensive benefit option and making employees think about retirement. However, Benna says he intended the plans to be self-directed and contends that the choices workers are given are too narrow, and he hopes that litigation will make employers and plan providers offer a wider investment selection.

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