National 401(k) Day

Categories:: Special Interest
Tags:: Elderly Financial
Where:: United States
Date change rule:: First Friday after Labor Day
Holiday emoji:: 💰

National 401(k) Day arrives every year on the first Friday after Labor Day, serving as a crucial reminder to prioritize retirement savings. With many Americans unprepared for their golden years, this day prompts us to assess our financial health and take proactive steps. Take advantage of employer-sponsored plans, understand your investment options, and consult a financial advisor to build a robust retirement strategy.

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Expected National 401(k) Day Deals

While direct ‘deals’ are less common for National 401(k) Day, financial institutions and employers often roll out educational campaigns and incentives. Look for special webinars from firms like Fidelity Investments and Vanguard offering free advice on maximizing contributions. Many companies, including Charles Schwab and T. Rowe Price, may host internal seminars or provide enhanced access to financial planners. Expect platforms like Empower Retirement and Principal Financial Group to share valuable insights on market trends and investment strategies. Some employers might offer limited-time incentives for increasing contributions or reviewing beneficiaries. We will update this page with confirmed live educational events and employer programs as September 11 approaches.

Platform Guide for National 401(k) Day

Tag National Today (linkedin.com/company/nationaltoday) and use #National401kDay. Share insights on retirement planning, financial literacy, and employee benefits.

X/Twitter

Mention @NatlToday and use #National401kDay. Post quick tips, infographics, or links to valuable resources for retirement savers.

Facebook

Mention National Today (facebook.com/nationaltoday) and use #National401kDay. Host a live Q&A with a financial expert or share personal stories of retirement planning success.

National 401(k) Day Hero

Bill Gross

Often referred to as the 'Bond King,' Bill Gross co-founded Pacific Investment Management Company (PIMCO) in 1971. While not directly inventing the 401(k), his work in fixed-income investing and asset management significantly influenced the landscape of retirement savings. PIMCO grew into one of the world's largest investment managers, providing strategies that many 401(k) plans utilize to help individuals grow their retirement nest eggs.

History of National 401(k) Day

National 401(k) Day began in 1996 by the Profit Sharing/401(k) Council of America (PSCA), known today as the Plan Sponsor Council of America. The Friday following Labor Day (Monday) was chosen so employees can “start the week with Labor Day and end the week with Retirement”.

This holiday promotes retirement savings education and PSCA encourages companies to give their employees the 411 about their 401(K) in fun, easy-to-understand ways. Retirement planning is a complex topic – rules change as quickly as the market changes. Less than 40% of Americans can answer basic questions about their 401(K) so it’s a good thing we have a holiday dedicated to learning about them.

Because of this complexity and our increased focus on financial health and wellness over the years, many companies now campaign for retirement savings education year-round. And, now more than ever, retirement savings education isn’t only about 401(k) plans. Since not everyone has access to them and people prefer investment diversification, we aren’t putting all of our nest eggs in one 401(k) basket.

If your employer provides a 401 (k) plan, you can use that resource to start your retirement plan. However, if you’re self-employed, you can start your 401 (k) through a financial institution. There are two different types of 401 (k) – traditional and Roth. The traditional route takes a percentage of your paycheck – approved by you, of course – whereas through the Roth 401 (k), contributions are made with money you’ve already paid on taxes, meaning your money grows tax-free.

National 401(k) Day timeline

January 1, 1980

The 401(k) goes from dream to reality

On this day, a new provision in the Revenue Act of 1978 took effect allowing for tax- deferred compensation for bonuses and stock options, clearing the way for 401(k) retirement plans.

1981

Salary deductions allowed for the first time

The IRS created new rules allowing employees to make tax-deferred salary deductions.

1996

401(k) plans hit $1 trillion

For the first time in its 15-year history, assets held in 401(k) plans hit $1 trillion.

1996

National 401(k) Day debuts

The Profit Sharing/401(k) Council of America launches National 401(k) Day to promote the importance of these plans.

2006

Congress makes automatic enrollments easier

The Pension Protection Act of 2006 made it easier for companies to enroll employees into a 401(k) plan automatically, encouraging more saving.

How Businesses Can Celebrate National 401(k) Day

Local businesses and employers can use National 401(k) Day to promote financial literacy and encourage retirement planning among their staff. Consider hosting a ‘Lunch & Learn’ session with a financial advisor to discuss the benefits of 401(k) contributions and matching programs. Companies can also provide personalized statements or offer one-on-one consultations to help employees understand their current retirement projections and explore ways to optimize their savings. Highlight the long-term value of these benefits to foster a financially secure workforce.

National 401(k) Day FAQs

When is National 401(k) Day?

National 401(k) Day 2026 falls on Friday, September 11. This annual observance is a prime opportunity to review your retirement savings strategy and ensure you’re on track for your future.

How many Americans participate in 401(k) plans?

It is estimated that around 79% of Americans work for a company that offers a 401(k) plan. However, only about 41% of eligible employees actually take advantage of this benefit, highlighting a significant opportunity for increased participation.

What is the average 401(k) balance in the U.S.?

The average 401(k) balance can vary widely based on age, income, and contribution history. Recent reports indicate that the average balance for participants in their 40s is often around $100,000, growing significantly for those closer to retirement age.

What is the difference between a 401(k) and an IRA?

A 401(k) is an employer-sponsored retirement plan, typically offering higher contribution limits and often including employer matching contributions. An IRA (Individual Retirement Arrangement) is an individual retirement account not tied to an employer, providing more investment flexibility and suitable for those without a 401(k) or who want to supplement their employer plan.

National 401(k) Day Activities

Find a Retirement Calculator
Many financial groups offer a Retirement Calculator Tool on their website, typically free for anyone to use. Fill in your personal information to get an estimate on how much money you will need to live on each year in retirement and whether or not your current savings plan is on track to provide that amount.
Know Your Numbers
Use this holiday as a reminder to check in on your assets. Is your savings plan panning out as you had hoped? Are you reaching your annual savings goals? What adjustments need to be made. This is something you should track periodically so mark your calendar for National 401(k) Day to do just that!
Learn over Lunch
Your bank, credit union or even your employer may be planning a learning event you could attend. If not, go online or get a book on retirement preparation at the library. With just a little bit of effort, you can begin your research to get on track for a more enjoyable retirement.

5 Tips For Maximizing Your 401(K)

Start contributions early
It’s never too late to start saving for retirement but the key to maximizing retirement savings is by starting early. If you or someone you love is in their 20s, start saving today whether through a 401(k) or IRA.
Take advantage of matching contributions
Most employers match their employees’ contributions by a certain amount – for example, they may match 50% of your contribution up to 6%, which means if you contribute 6% into your 401(k) account, they will contribute 3%.
Select personally compatible investments
The typical 401(k) plan also allows you to select from a variety of investments that fit your investment preferences.
Avoid early withdrawals
Withdrawals result in penalty fees as well as tax payments which you likely avoided when initially saving the money.
Check in periodically
These long-term investments are easy to forget about but you should monitor as you go in order to make adjustments as needed.

Why We Love National 401(k) Day

It simplifies a complicated subject
A lack of financial literacy is an on-going problem among Americans of all ages. National 401(k) Day promotes effective communication between plan sponsors and consumers needing help making the best retirement savings choices.
Saving for retirement is a must
Unless you're the type who wants to work until age 90, everyone needs a plan for their retirement years. The days of company pensions are long gone and Social Security will only get you so far. 401(k)s are among the best ways to save and National 401(k) Day promotes this important task.
It connects consumers with providers
The more you understand about your future retirement needs and the ways to reach those goals, the better prepared you will be. National 401(k) Day facilitates conversations between consumers and providers making a connection that will ultimately pay off for both parties.