Start The Week With Labor Day And End The Week With Retirement

Labor Day is right around the corner. We all look forward to that holiday on the first Monday in September that heralds the end of summer and the imminent arrival of fall. But the real purpose of the holiday is to pay tribute to the contributions and achievements of American workers. It became a Federal Holiday in 1894.


Back in 1996, another holiday was designated as a bookend to Labor Day. It’s National 401(K) Day. It was initiated by the Plan Sponsor Council of America (PSCA) (previously known as the Profit-Sharing Council of America). It falls on the Friday after Labor Day for the purpose of promoting “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 information about their 401(K) in fun, easy-to-understand ways. I’m all for the greater awareness of National 401(K) Day. Employer sponsored retirement plans are one of the greatest ways to begin a solid road to a financially sound retirement. If you are employed and your company offers a 401(K) plan, do yourself a solid and get in on it. If you have children and grandchildren in jobs where their employers offer a 401(K) plan, encourage them to participate in that plan.


If you are ready to take yet another step toward retirement security and would like to find out how we can help you make your retirement dreams a reality, give our office a call and set up a consultation. Why not make it for the Friday after Labor Day?


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.


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