401(k) Creator Ted Benna Launches Radish Savings Plan

Ted Benna, the man who created the 401(k), is now focused on a different financial challenge. He believes the retirement systems he helped establish serve high earners well but often fail those who struggle to meet basic living costs. Benna notes that many employees cannot afford to set aside money from their paychecks even when they have access to a retirement plan.

His new initiative is called Radish. It functions as an employer-funded incentive program designed for hourly workers and frontline staff. Instead of asking employees to contribute their own earnings, companies deposit money into accounts based on performance metrics such as safety, tenure, or delivery goals. These funds grow over time and provide a secondary benefit of reducing turnover for the employer.

Technically, the program operates as a 401(a) profit-sharing plan. Because the contributions come from the employer rather than through payroll, companies avoid certain payroll taxes on the reward amounts. Benna believes this structure creates a necessary savings habit for workers who are currently excluded from traditional wealth-building vehicles.

While the plan has garnered interest from trucking firms and educational institutions, wider adoption remains a hurdle. Skeptics point out that incentive rewards do not count toward taxable earnings, which impacts future Social Security calculations. Others suggest that employers might prioritize direct wage increases over secondary benefit structures. Despite these concerns, Benna remains focused on his goal of providing financial security to workers who were left behind by the current retirement system.

Benna acknowledges that shifting employer behavior is difficult. He likens the current resistance to the early days of the 401(k) when many questioned its legality and long-term viability. As he looks toward the future, he views Radish as a tool to improve the immediate financial stability of lower-income workers, even if he does not see its full impact within his own lifetime.