National 401K Day
National 401(k) Day is an annual observance dedicated to promoting retirement savings education and encouraging employees to take control of their financial future through employer-sponsored retirement plans.
Quick Facts
When is it: Friday following Labor Day
Tagged as: Financial Awareness Day
What’s the hashtag: #National401kDay
When was it founded: 1996
Who founded it: Profit Sharing/401(k) Council of America (now Plan Sponsor Council of America)
History of National 401(k)
The 401(k) plan itself was created by accident through the Revenue Act of 1978. Ted Benna, known as the founding father of the 401(k), recognized an opportunity in Section 401(k) to create a tax-friendly retirement account. By 1981, the IRS allowed employees to contribute to these plans through salary deductions, revolutionizing retirement savings in America.
Timeline
- 1978: Revenue Act passes, including Section 401(k)
- 1981: IRS approves salary deductions for 401(k) contributions
- 1996: First National 401(k) Day celebration
- 2022: 401(k) plans reach $7.3 trillion in assets
Dates by Next Year
| Year | Month | Date | Day |
|---|---|---|---|
| 2025 | September | 5 | Friday |
| 2026 | September | 11 | Friday |
| 2027 | September | 10 | Friday |
| 2028 | September | 8 | Friday |
| 2029 | September | 7 | Friday |
| 2030 | September | 6 | Friday |
How It’s Observed
Companies use this day to educate employees about retirement planning through workshops, seminars, and informational sessions. The day promotes understanding of both traditional and Roth 401(k) options, encouraging workers to start or increase their retirement savings.
Fun Facts About 401(k)s
- Less than 40% of Americans can answer basic questions about their 401(k)
- Most employers offer matching contributions
- Two types exist: traditional and Roth
- Self-employed individuals can start their own 401(k) through financial institutions
Quiz
- When was the first National 401(k) Day celebrated?
- Who is considered the founding father of the 401(k)?
- What does PSCA stand for?
Answers: 1) 1996 2) Ted Benna 3) Plan Sponsor Council of America
FAQs
Q: Why is it celebrated after Labor Day?
A: To symbolically “start the week with Labor Day and end the week with Retirement”
Q: What’s the difference between traditional and Roth 401(k)?
A: Traditional uses pre-tax money, while Roth uses after-tax contributions
Related Observances
- Financial Planning Month
- Retirement Planning Week
- Employee Benefits Day
- Financial Literacy Month
- Savings Day