The 50-Year History of 401(k)s, IRAs & SECURE Act 2.0
Mike Milligan outlines the key legislative milestones that shaped U.S. retirement savings tax law over the past five decades. He begins with the 1978 Revenue Act’s addition of Section 401, which took effect in 1980 and was clarified by regulations in 1981, establishing the legal basis for 401(k) plans. He then notes the 1986 Tax Reform Act’s restriction on deductible IRA contributions for taxpayers covered by workplace retirement plans, marking a rollback in tax benefits. The narrative moves to the 1997 creation of the Roth IRA (available in 1998), which introduced after‑tax contributions with tax‑free qualified withdrawals. Finally, he explains that legislation passed in 2001 enabled Roth 401(k) contributions, which became available to workers in 2006, giving employees another option to choose the tax treatment of their retirement savings.
