Did you know that of the 79% of working Americans whose companies offer a 401(k) plan, only 41% take advantage of these plans? That is why in 1996 the Plan Sponsor Council of America (PSCA) created National 401(k) Day. National 401(k) Day falls every year on the Friday after Labor Day. This day is chosen so that workers can “start the week with Labor Day and end the week with retirement”. Let’s learn more about National 401(k) Day and what you can do to get involved this September 10th!
Stay Compliant with our Fiduciary and Plan Sponsor Checklist
National 401(k) Day History and Timeline
- It was in 1980 that 401(k)s came to be after a provision in the Revenue Act of 1978 allowed tax-deferred compensation for bonuses and stock options.
- In 1981 the IRS created new rules to allow employees to make tax-deferred salary deductions.
- National 401(k) officially debuted in 1996.
- In 2006 Congress passed the Pension Protection Act of 2006 which made it easier for businesses to enroll their employees in 401(k) plans.
- PSCA sets a theme every year for National 401(k), this year’s theme is Refocus, Revive, and Reset
- September 10th is National 401(k) Day for 2021!
Activities You Can Do
Check With Your Employer for Events
- Some employers may be offering learning events for their employees
- If you are an employer, you can find a local retirement plan advisor to speak with your employees
Find a Retirement Calculator
- Look online for a retirement calculator to see how much money you will need each year you are retired and if your current savings are on track to meet these goals.
Take an Opportunity to Learn About Retirement Plans
- Use some of your time throughout the day to learn about what retirement plans your company may offer
- Even if your company doesn’t offer retirement plans, you can still use this time to further your knowledge of the plans that might be available to you in the future.
Check in on Your Current Retirement Plan
- Check to see if you are on track with your goals and see if you need to make any changes to your plan
From now until November 15, receive 30% off start-up fees with new retirement plans! Learn more by contacting California Pensions today!
Benefits of National 401(k) Day
- It helps simplify a complicated, but important subject
- 401(k) Day helps connect the consumer with the provider
- The day shows the importance of saving and planning for retirement
- It reminds people to check in on their retirement plans
- 401(k) Day encourages people to start a retirement plan sooner
Retirement may seem like a far-off thing for many, but it is never too early to start planning and saving. National 401(k) Day is a great opportunity for you to learn more about retirement planning, 401(k) plans, and check on your current savings plans. Want to learn more about 401(k) plans and National 401(k) Day? Visit us online to learn what California Pensions has to offer.
