401(k) Contributions Not All They Could Be
New York Times (03/16/03) p.A3; Whitehouse, Kaja

Findings from a new study commissioned by Cigna Retirement and Investment Services show that most workers are under the false impression that they contribute the legal maximum to their 401(k) plans. Some 47 percent of the 401(k) investors polled said they contribute as much as they are permitted, but the Employee Benefit Research Institute, which conducted the survey, found that only 11 percent of participants contribute the legal maximum. The survey found that 76 percent of respondents trust their employer to manage their accounts; however, only 19 percent gave their employers a grade of A on "the quality of education and communication they provide," 37 percent gave a B, and 41 percent gave their employers a C or below.


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