The Father of 401(k) Has A New Retirement Plan

Ted Benna, the 'Father of 401(k)', discusses his new employer-funded retirement plan called Radish, designed to help middle and low-income employees who cannot afford paycheck deductions. He explains the tax advantages and flexibility of the plan, and suggests adoption among trucking companies to improve performance and reduce turnover. The conversation also reflects on the 401(k)'s long-term success and its limitations for today's financially stressed workers. - Ted Benna co-created Radish, an employer-funded retirement plan that allows employees to access funds for immediate needs without paycheck deductions. - Many middle and low-income workers cannot afford to contribute to a 401(k) due to high living costs. - Radish contributions are made pretax, avoiding FICA taxes; withdrawals may incur a 10% penalty but states may exempt them. - The 401(k) has helped workers accumulate about $15 trillion and turned many into savers, but its reach is now limited for those with no spare income. - Employers, especially in trucking, can use Radish incentives to reward performance and improve retention. - Younger workers need not fear that 401(k) plans might disappear; money already saved is safe.