Ted Benna immediately knew he had discovered something of valuewhen he finished reviewing the IRS regulations that fateful weekendin 1980. And, although the client he was doing the analysis forrejected the idea, his own firm, The Johnson Companies, didn't andthe first 401(k) savings plan with matching employer contributionsand employee deferrals became effective January 1, 1981.
Thus began one of the greatest real-life “they laughed when Isat down at the piano” moments. And like the famous andoft-repeated 1926 ad by John Caples, the concept of the 401(k) not only had staying power, but it hasproven to be quite successful in its intended purpose. How strongis the concept? Benna's simple idea has been repeated 640,000 timessince he convinced his company to start the first 401(k) plan. Howsuccessful is the concept? The 401(k) has allowed 60 millionemployees to accumulate more than $7.8 trillion in assets.
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