The 401(k) is a result of the 1978 congress trying to provide a tax break to those higher wage earners (in a large Rochester company) on deferred income. The code was two years old when an employee benefits consultant, Ted Benna, thought it could be used to build a great retirement plan, replacing sections of their existing profit-sharing plan.

The client didn’t bite, but Ted talked and now millions of people use a 401(k). This tax loophole for deferred incomers is widely touted now by the Right To Wealth Elites as the salvation for their masses.