1981—The IRS issued proposed regulations on 401(k) plans that sanctioned the use of employee salary reductions as a source of retirement plan contributions, and several major firms, including Johnson & Johnson, quickly initiated plans, many of which officially began operation in January 1982. Many employers replaced older, after-tax thrift plans with 401(k)s and added 401(k) options to profit-sharing and stock bonus plans. Within two years, surveys showed that nearly half of all large firms were either already offering a 401(k) plan or considering one. Dow Jones Industrial Average at year-end: 875.00.
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Company stocks like AMGN, MSFT, RIMM awarded into 401k.