The aim of making 401k is for the benefits of the employers after they retire later. It is created to in order to give some kind of guarantee for the employee’s life after they do not work anymore.
When launching 401k in 1978, the government thought that if they gave people a way to save for retirement while at the same time lowering their state and federal taxes, people can just take advantage of it easily. Finally the Tax Reform Act was passed and part of it authorized the creation of a tax-deferred savings plan for employees.
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