How Are 401(k) Plan Participants Investing Their Money?
Created in 1996, National 401(k) Day has historically been celebrated on the Friday following Labor Day to shine a spotlight on this important employee benefit. Since the late 1990s, plans have evolved substantially, and most participants can now choose from a diverse variety of investments. The chart below shows how 401(k) and profit-sharing funds were invested in 2020.
![Total plan assets by fund type: Target date/lifecycle: 23.9%; Indexed equity: 21.7%; Actively managed equity: 20.8%; Stable value: 9.0%; Company stock: 6.8%; Indexed domestic bond: 5.0%; Actively managed domestic bond: 4.1%; Other: 3.7%; Balanced/asset allocation: 2.7%; Self-directed brokerage window: 2.3%.](
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Source: Plan Sponsor Council of America, 2021