There are lots of reasons why employees are confused by their 401(k) plans. Two primary reasons are most people have never taken any investment courses and financial service firms have a vested interest in the public not being educated about investments.
Every company 401(k) plan includes some sort of education for the employees. What exactly does this education accomplish? Most of this education leaves out a very important topic - the detailed information and terminology of Mutual Funds. Employees don't get taught the details of Mutual Fund investing.