Company-stock sales were 33% of 401(k) outflows in October

Transfers across 401(k) accounts came to 0.06% of starting balances in October, unchanged from September, according to Alight Solutions' October 2026 401(k) index, as reported by PLANADVISER.

Alight's index showed company stock accounted for 33% of all trading outflows, and the selling clustered at the end of the month. The only above-normal trading days were Oct. 29 and Oct. 30, at 1.95 and 2.10 times Alight's 12-month average daily activity. Alight classes a day above twice the 12-month average as "high" relative transfer activity. The rest of October stayed inside its normal band of 0.3 to 1.5 times average.

For advisers preparing participant-account reviews, Alight's index put equity allocations at 74% of balances even as company stock made up a third of outflows.

The remaining outflows came from premixed funds at 18% and self-directed windows at 17%. Inflows went to stable value funds at 50%, money market funds at 20% and large-cap U.S. equity funds at 19%. Target-date funds and large-cap U.S. funds kept taking roughly three-quarters of contributions.

"The contrast suggests that while some participants used strong gains in select holdings to rebalance and capture profits, long-term saving and investment behavior remained largely unchanged," the update said.

Adam Vredeveld, an Alight senior client manager for defined contribution, said October's low volume fits a "relatively calm" 2026. The March downturn, which followed the start of the global conflict in Iran, drew a more muted market response than a similar downturn in early 2025, he said.