NEW YORK - J.P. Morgan and American Century Funds recently quizzed 401(k) participants, and the grades were far from excellent.

The 10-question quiz on the basics of 401(k) plans went to 750 people actively invested in them. Only 17% knew that the maximum annual contribution allowed under the law is $10,500; only half knew that employees make their own investment decisions, not their employer or plan administrator; and only 35% knew that investing too conservatively is one of the biggest mistakes 401(k) investors make.

Subscribe Now

Access to authoritative analysis and perspective and our data-driven report series.

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.