Press Release
Despite Dow, Plenty to Celebrate on 401k Day
CHICAGO, IL, August 2, 2002 -- September 3 is 401k Day and despite recent fluctuations in the stock market, American employees have a lot to celebrate. Over 20 years since 401k legislation finds millions of Americans preparing today for tomorrow’s dream in their company-provided retirement plans. More people than ever before are taking control of their financial futures by saving and investing in company-sponsored retirement plans like 401k and profit-sharing plans, according to recent Department of Labor data.
"American employees are increasingly smart retirement investors," said David L. Wray, president of PSCA, the non-profit association instrumental for the inclusion of Section 401k in the federal tax code and sponsor of 401k Day. "They're realizing the importance of saving now and saving enough for the future. Recent data indicates that employees understand that retirement investing is a long-term endeavor and is not overly affected by daily stock market fluctuations."
Smart about long-term savings
"American workers today are very concerned about their long-term financial futures as revealed in the recent Principal Financial Well-Being Index. In this environment, the critical role employers play in helping Americans save for retirement through strong benefits like a 401k cannot be underestimated," said Daniel J. Houston, senior vice president at the Principal Financial Group, the nation’s 401k leader. "The 401k plan is perhaps the single-most effective retirement savings tool this nation has ever seen. National 401k Day is a great reminder for all savers to revisit their retirement savings strategies and plan for the future."
Recent legislation provides additional savings opportunities.
In addition to hundreds of changes in the existing laws regulating pensions, two brand new concepts were created in the Economic Growth and Tax Relief Reconciliation Act of 2001 (EGTRRA) that are sure to capture the attention of participants and plan sponsors alike. PSCA, instrumental in the passage of EGTRRA, is working with thousands of employers to assist in their efforts to revamp their plans to incorporate the new laws. Savers age fifty and over will be able to make additional contributions to their retirement plans and lower-income savers will be eligible to receive a matching tax credit from Uncle Sam when they contribute to a plan.
How to participate in 401k Day
PSCA's free 401k Day tools make designing your company's 401k Day program easy. Participant communication materials to help companies conduct their 401k Day program can be easily downloaded from PSCA’s website at www.psca.org. The 2002 401k Day materials include a 401k day flyer, participant brochures, an action plan and payroll envelope inserts.
Why participate?
Celebrating 401k day is a great way to applaud Americans already investing for retirement and a time to encourage employees not in a plan to start saving now.
"Just as retirement follows work, 401k Day follows Labor Day to show how employees can ensure their future is secure," Wray said. "The employer/employee partnership of 401k plans is the best way to do that. You have the option to save what you want and invest it where and how you want. This allows you to make the best decisions for your life and tailor your investments to suit your needs, whether you are 25 or 55."
According to Wray, 401k Day is the perfect time to picture your retirement and take action to makes your dreams a reality. Here's how:
- If your company doesn't have a plan, ask them to start one.
- If your company has a plan, sign up now.
- If you're already signed up, increase your savings as much as possible.
Established in 1947, PSCA is a national, non-profit association of 1,200 companies and their 3 million employees. PSCA represents its members' interests to federal policymakers and offers practical, cost-effective assistance with profit sharing and 401k plan design, administration, investment, compliance and communication.
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