James J. Choi|David Laibson|Brigitte Madrian
$100 Bills on the Sidewalk: Suboptimal Investment in 401(k) Plans
Yale University|Harvard University|Harvard University
identify employees seven companies whose 401k investment choices dominated contributing less employer matching contribution threshold despite vested match able make penaltyfree 401k withdrawals reason older 59 average firm 36 matcheligible employees 59 forego arbitrage profits average 16 annual pay 507 survey educating employees free lunch foregoing raised contribution rates statistically insignificant 067 percent income among completing survey