12.10.18
After 40 Years, Some Say 401(k) is Due for a Facelift
by: Margarida Correia
In the 40 years since the 401(k) retirement savings plan was created, it has grown and flourished. Yet while many say it has aged well, even its supporters suggest that it is time for a few tweaks. By 1984, there were 17,303 401(k) plans holding $92 billion in assets, according to the Investment Company Institute. Currently, 55 million Americans are active participants in some 555,000 401(k) plans, which held $5.3 trillion in assets as of June 30. The retirement industry is pushing for ways to improve access to 401(k) plans. Ted Benna, the architect of the 401(k), would like to see legislation requiring employers to automatically enroll employees and bump up their contributions by 1 percent of pay annually until they reach 6 percent. The Department of Labor has proposed giving small businesses a greater ability to band together to offer their employees 401(k)s through open multiple employer plans.
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