CHICAGO (August 8, 2001) – September 4 is 401(k) Day and despite recent fluctuations in the stock market, American employees have a lot to celebrate. The 20th Anniversary of 401(k) 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 401(k) and profit-sharing plans, according to a recent survey by the Profit-Sharing/401(k) Council of America (PSCA). "American employees are increasingly smart retirement investors," said David L. Wray, president of PSCA, the non-profit association instrumental for the inclusion of Section 401(k) in the federal tax code and sponsor of 401(k) 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
"During the past several months, our participants have been seeking information and making changes that reflect a long-term focus rather than just making knee-jerk changes to a market downturn," said E. Thomas Johnson, Jr., senior vice president of marketing for institutional retirement plans for MassMutual Financial Group. Recent legislation provides additional savings opportunities
In addition to many 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: (1) Savers age fifty and over will be able to make additional contributions to their retirement plans and (2) Lower income savers will be eligible to receive a matching tax credit from Uncle Sam when they contribute to their plan. PSCA, instrumental in the passage of EGTRRA, is working with thousands of employers to assist in their efforts to revamp their plan designs and communication programs. These brand new provisions could be important tools for employers in increasing participation and deferral rates and further maximizing the many improved upon provisions within EGTRRA. How to participate in 401(k) Day
PSCA's free 401(k) Day tools make designing your company's 401(k) Day program easy. Several files are available for download. PSCA members are also encouraged to order the complete 401(k) Day kit by mail. English materials can be easily downloaded from PSCA’s website. PSCA members may download or order the complete 401(k) Day kit via mail. This member kit includes a printed hard copy of each 401(k) Day item, including all posters, labels and envelope inserts, and copies of all related files on CD ROM (English and Spanish). The kit also contains an educational video in English. Why participate?
Celebrating 401(k) 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, 401(k) Day follows Labor Day to show how employees can ensure their future is secure," Wray said. "The employer/employee partnership of 401(k) plans are 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, 401(k) 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.
PSCA thanks their corporate 401(k) Day.2001 sponsors.
Corporate sponsors for 2001, include: ADP Retirement Services; American Express Financial Advisors; Aon Consulting, Inc.; BISYS Plan Services; Dreyfus Retirement Services; Fidelity Investments; Hewitt Services LLC; Manulife Financial; MassMutual Life Insurance Company; Massachusetts Financial Services; Metlife Retirement & Savings; Morningstar, Inc.; Neuberger & Berman Management, Inc.; Northern Trust Company; Oppenheimer & Co. Inc.; Putnam Investments Inc.; SunTrust Bank; T. Rowe Price Associates, Inc.; Trustmark, Inc.; The Vanguard Group of Investment Companies; William M. Mercer, Inc. and to DailyAccess.Com for their creative contributions to 401(k) Day.2001. |