Скачать или смотреть Defining Retirement Plans

Retirement plans defer income until after employment ends. The first U.S. pension plan was established in 1759 for Presbyterian ministers’ families, and American Express introduced a formal plan in 1875. Pension growth accelerated after the 1921 Revenue Act gave favorable tax treatment, and WWII wage controls further encouraged benefit-based compensation.

Today, qualified retirement plans continue to offer tax incentives to both employers and employees, with taxes paid only upon distribution. Participation in retirement plans has declined slightly over time, with a notable shift from defined benefit to defined contribution plans. Qualified plans also allow tax-free investment growth and deferred taxation on retirement benefits until they are distributed.