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MSC18-EX0: Applications such as password managers may need to retrieve the original password in order to enter it into a third-party application. This is permitted, even though it violates the rule. The password manager is accessed by a single user and always has the user's permission to store their passwords and to display those passwords on command. ThereforeAs a result, provided the user is competent, the program's operation will be safe. 

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http://www.javapractices.com/topic/TopicAction.do?Id=216

Passwords never in clear text

http://en.wikipedia.org/wiki/Salt_(cryptography) 

Salt (cryptography)

http://en.wikipedia.org/wiki/Cryptographic_hash_function 

Cryptographic hash function

http://nsa.gov/

 

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