Catherwood LibraryILR School

For the first time since the 401(k) retirement savings plan was created 20 years ago, the average 401(k) account lost money last year, and data indicates that the decline has continued into the current year. The plan has become popular because its existence largely coincided with the economic boom. The recent news that 401(k) accounts are losing money for the first time, however, exposes the problem that many employees do not know how to invest their money and casts doubt on President Bush’s plan to allow Americans to manage a portion of their Social Security benefits.