History of Retirement Plans, planning,
History of Retirement Plans
History of Retirement Plans
The history of retirement plans date back to 1875. The American Express Company set up the first employer-sponsored pension plans in the United States. The plan was created for employees that had at least 20 years of service at the age of 60. The history of retirement plans have grown to cover more than 45 million participants through over 700,000 private retirement plans.
As the history of retirement plans developed, the Revenue Act of 1926 allowed employers contributions to the retirement plans to be tax deductible. This act made establishing retirement accounts for employees a valuable benefit for employers to offer employees.
In 1935, Congress passed the Social Security Act, which today is a still a hot topic in the history of retirement plans. The Social Security Act was a great supplement to employer established retirement plans; as well as for individuals who did not have employer retirement plans to build their retirement account. Today, the Social Security Act is under great scrutiny as to whether this is still a viable option.
Through the history of retirement plans, we see acts that have been passed to protect both businesses and individuals in matters of retirement accounts. 1942 s Revenue Act prohibited employers from giving richer benefits to higher paid officers and employees. Self-employed people were able to setup their own tax deferred retirements plans, thanks to The Self-Employed Individuals Tax Retirement Act in 1962.
During the last thirty years, history of retirement plans include the Employee Retirement Income Security act of 1974, The Revenue Act of 1978 and in 1986 Congress eliminated the tax deduction for IRA contributions by higher-paid workers.
As our economy evolves, the history of retirement plans is altered. One constant in the history of retirement plans is the benefit of using a retirement plan to plan for your retirement.
Current Date and Time:
Sat Jul 05th, 2008 02:11 pm
