Blackout Period

Written By
Paul Tracy
Updated June 17, 2021

What is a Blackout Period?

A blackout period is a time period of roughly 60 days during which a company's employees are unable to make changes to their savings or retirement plans.

How Does a Blackout Period Work?

Nearly every organization offers employees non-taxable retirement savings option. Depending on factors such as risk preferences, financial goals and pre-tax contributions, there are a variety of controls in place that allow employees to make frequent changes to their portfolio composition or their financial contribution.

In most cases, such accounts are centrally-administered from within a company. As a result, a company may designate a blackout period for periodic accounting or review.

Why Does a Blackout Period Matter?

Savings and retirement accounts play an important role in financial planning and security. Plans often change due to personal preferences or significant life events, people may need to adjust their savings accounts, accordingly.

Without the ability to make changes to or access funds from these accounts, a blackout period can represent a risk for the holders of these accounts. But a blackout period is necessary for the company to perform accounting, maintenance and other various activities.

Activate your free account to unlock our most valuable savings and money-making tips
  • 100% FREE
  • Exclusive money-making tips before we post them to the live site
  • Weekly insights and analysis from our financial experts
  • Free Report - 25 Ways to Save Hundreds on Your Monthly Expenses
  • Free Report - Eliminate Credit Card Debt with these 10 Simple Tricks
Ask an Expert
All of our content is verified for accuracy by Paul Tracy and our team of certified financial experts. We pride ourselves on quality, research, and transparency, and we value your feedback. Below you'll find answers to some of the most common reader questions about Blackout Period.
Be the first to ask a question

If you have a question about Blackout Period, then please ask Paul.

Ask a question

Paul has been a respected figure in the financial markets for more than two decades. Prior to starting InvestingAnswers, Paul founded and managed one of the most influential investment research firms in America, with more than 3 million monthly readers.

If you have a question about Blackout Period, then please ask Paul.

Ask a question Read more from Paul
Paul Tracy - profile
Ask an Expert about Blackout Period

By submitting this form you agree with our Privacy Policy

Don't Know a Financial Term?
Search our library of 4,000+ terms