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Home 401(k) Resource Center Background on 401(k) Topics

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November 10, 2006 marks the 25th anniversary of the 401(k) plan. A tax code provision--Section 401(k)--added in 1978 permitted cash or deferred arrangements (CODAs), but it was not until November 10, 1981 that the IRS formally described the rules for these plans.

Originally viewed as a supplement to traditional workplace pension plans, 401(k) plans now serve 47 million active participants, or more than twice the 21 million who participate in private sector defined benefit pensions. 401(k) plans held $2.4 trillion in assets in 2005, compared with $1.9 trillion in assets in all private-sector defined benefit pensions.

25th Anniversary Resources

  • 401(k) Plans: A 25-Year Retrospective (Research)
  • Appendix: Additional Information for a 25-Year 401(k) Retrospective (Research)
  • 401(k) Is Now the U.S.’s Leading Private Retirement Plan (News Release)
  • About 401(k) Plans: History & 25th Anniversary (FAQs)
  • Retirement Savings: Big Picture, Big Opportunity (Speech)
  • Looking Back on 25 Years of Retirement Savings (opinion-editorial)

Selected ICI Publications on 401(k) Plans or Plan Participants

  • 401(k) Plan Asset Allocation, Account Balances, and Loan Activity in 2005 (Research)
  • The U.S. Retirement Market, 2005 (Research)
  • The Influence of Automatic Enrollment, Catch-Up, and IRA Contributions on 401(k) Accumulations at Retirement (Research)
  • The Expenses of Defined Benefit Pension Plans and Mutual Funds (Research)
  • Can 401(k) Accumulations Generate Significant Income for Future Retirees? (Research)
  • Contribution Behavior of 401(k) Plan Participants (Research)
  • Defined Contribution Plan Distribution Choices at Retirement (Research)
  • Financial Decisions at Retirement (Research)
  • 401(k) Plan Participants: Characteristics, Contributions, and Account Activity (Research)
  • Retirement Plan Holdings of Mutual Funds (Research)
  • Shareholders with 401(k) Plans Invested in Mutual Funds (Research)
  • 401(k) Plans: How Plan Sponsors See the Marketplace (Research)

Related Links

  • More Frequently Asked Questions About 401(k) Plans (FAQs)
  • Looking Forward to a Bright Future with Your 401(k) Plan (Message to Investors)