Get July 2010 Monthly 401(k) Newsletter - Raymond James

In 1981, the IRS issued new rules that allowed employees to fund their 401(k) through payroll deductions, which kickstarted the 401(k)'s popularity.

401(K) LOSSES FROM THE ECONOMIC CRISIS: During 2008, major U.S. equity indexes were sharply negative, with the S&P 500 Index losing 37.0 percent for the year, which translated into corresponding losses in 401(k) retirement plan assets.

Starting in the 1980s, pensions rapidly began disappearing, as the defined contribution 401(k) plan dominated. Unlike with pensions, 401(k) plans don't offer guaranteed retirement payouts, which are instead determined by the performance of the 401(k) investments.

Our plan offers two kinds of accounts: A traditional 401(k), where you can make pre-tax contributions. A Roth 401(k), where you can make post-tax contributions.

Before the mighty 401(k) there were Cash or Deferred Arrangements, commonly known as CODAs. These arrangements between companies and workers allowed employees to defer some of their income and the taxes they paid on it for a period of time.

General requirements The annual notice requirement is satisfied if each employee eligible to participate is given, within a reasonable period before the beginning of the plan year, written notice of the employee's rights and obligations under the plan, and the notice meets certain content and timing requirements.

SHRM 401(k) Solutions by Raymond James helps make it possible for your employees to save and prepare for retirement – all while helping you meet your fiduciary responsibilities. Get the help and guidance you need to optimize your employee benefits.

But, when Social Security was instituted in 1935, men became eligible for benefits at age sixty-five. The use of sixty-five as a retirement age for Social Security also led to its adoption as a retirement age, often mandatory, by many private pension plans.