401 (k) Plan I 702s Plan
"Let's review the differences between the two."
Benefits I Features of the plans 401(k) Plan I 702s Plan
Lifetime Tax-Free Distribution
Unlimited Contributions
Protection from Stock Market Declines
Access to Distribution
Living Benefits
Estate Benefit
Income tax due upon distribution
Loans must be paid back within 5 years
Early Distribution penalty
Annual gains locked in
Provides Safety of Principal
Wealth Transfer to heirs tax-free
The plan is portable take it whereever you go
Employer Contributions Allowed
No
No
No
Age 59.5
No
No
Yes
Yes
Yes
Yes
No
No
No
No
Yes
Yes
Yes
Yes
After 12 Months
Yes
Yes
Yes
No
No
No
Yes
yes
Yes
Yes
Yes
The 401(k) plan was introduced in 1978 as part of the U.S. Revenue Act, providing a way for employees to contribute pre-tax income toward retirement savings, often with employer matching.
In contrast, the 702s Plan was introduced in 2023 by William H. Steiner. This plan modernizes previous versions of similar insurance-based strategies, which have been in existence since the early 1900s, offering tax advantages and wealth-building opportunities within a life insurance framework.
While the 401(k) is widely known as a retirement savings vehicle, the 702s Plan combines elements of insurance and investment, providing a broader wealth management strategy.