There's a lot of confusion about how retirement savings accounts work, even among those who are more well-prepared for retirement.
That's what TD Ameritrade concluded after a 2019 survey that The Harris Poll conducted for them asked U.S. adults with at least $10,000 in investable assets to answer questions about 401(k) plans and individual retirement accounts (IRAs).
These three questions were particularly tricky and stumped at least half of all respondents:
1. What's the contribution limit for employees who participate in a 401(k) in 2019 (excluding catch-up contributions)?
Just 19 percent of respondents selected the correct answer: $19,000.