an investment to flow directly to the investor, thereby avoiding double taxation" (Goldberg, 1984, p. 69).
Qualified income deferral plans, profit sharing plans, individual retirement arrangements (IRAs), and Keogh Plans are tax shelters of a sort. These vehicles are devices that permit federal income tax liabilities to be deferred (Goldberg, 1984, p. 69). These tax deferral devices are created by Congress, as a means of encouraging the channeling of investment funds to targeted sectors of the economy.
Prior to the Second World War, pension plans in the United States were largely limited to the public sector, and to executives in private industry (Mayers, 1992, p. 25). In the 1940s, labor unions began to negotiate pension arrangements into their collective agreements. Subsequently, favorable federal income tax legislation provided strong incentives for the establishment and maintenance of employee pension plans by employers.
In 1974, Congress enacted the Employees' Retirement Income Security A
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