The advantages of a 401(k) have disappeared

Bloomberg Opinion Today

401(k) Plans No Longer Make Much Sense for Savers — Aaron Brown

The 401(k) retirement plan was authorized by the Revenue Act of 1978, which took effect in 1980, but its real genesis is the 1974 Employee Retirement Income Security Act, which fixed the problem of underfunded defined-benefit plans so thoroughly that private employers stopped offering them. Benefits consultant Ted Benna came up with a way to use the 1978 Act for a tax-deferred, defined-contribution plan and the rest is history.

The tax advantage of a 401(k) depends on four factors, all of which have changed dramatically since 1980 to the detriment of 401(k)s.

Read the whole thing.

I Was Wrong About Florida's Response to Covid-19 — Joe Nocera

The U.K.'s Response to Covid-19 Has Been World-Class — Tyler Cowen

AOC's Powerful and Historic Floor Speech — Francis Wilkinson

The Virus Will Make Everything Bad About Flying Worse — David Fickling

Trump Did Nothing to Help the Economic Boom — Noah Smith

Undermining the CDC Puts Lives at Risk — Michael R. Bloomberg

China Is Nearing Its Lehman Moment — Anjani Trivedi and Shuli Ren

The U.S. Is on the Verge of Lockdown 2.0 — Noah Smith

The Pandemic May Very Well Last Another Year or More — Peter R. Orszag, David Gluckman and Stephen H. Sands

This is the Weekend Edition of Bloomberg Opinion Today, a roundup of the 10 most popular stories Bloomberg Opinion published this week based on web readership.


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