Meet the Architect of the 401(k) Plan

Ted Benna, a benefits consultant, is widely credited with creating the 401(k) plan most companies use today. While a provision added to the Internal Revenue Code in 1978 is the basis for 401(k) plans, it was initially used primarily by senior executives who wanted to supplement their pensions. Benna came up with the idea of using matching contributions to encourage contributions from lower-paid employees. More recently, Benna has developed an alternative savings plan forKiplinger’s401(k)s and IRAs for Dummies,