As a participant in the 401(k) Savings Plan, there are generally three instances when you may be making investment decisions. These include:

You elect how your contributions are invested among the plan's investment funds. In general, contributions purchase units in the investment funds available under the plan at their net asset value (NAV) per unit. This investment normally occurs using the NAV for each investment fund determined as of 4 p.m. Eastern Time or the close of the New York Stock Exchange, whichever is earlier. No participant-initiated transaction of any kind will be processed on a day that the New York Stock Exchange is closed.

If you are eligible for JPMorgan Chase matching contributions, you will have full investment discretion over how your matching contributions are invested in the plan. You may choose to invest JPMorgan Chase's matching contributions in the same manner as your own contributions or in the JPMorgan Chase Common Stock Fund. However, future matching contributions will be invested in the plan's JPMorgan Chase Common Stock Fund unless you elect otherwise.

To change the way your future contributions are invested, you can use the 401(k) Savings Plan Web Center or Call Center. Just follow the instructions online or on the automated telephone system. Your elections will become effective in accordance with administrative practices.

An investment fund reallocation affects your entire existing vested plan balance (subject to the restrictions noted in this section). It allows you to direct how you would like your entire vested balance to be invested among the plan's investment funds in whole percentages that must equal 100%. You can request an investment fund reallocation through the 401(k) Savings Plan Web Center or Call Center.

An investment fund transfer allows you to transfer all or part of your vested balance from one investment fund to another investment fund or funds in either whole percentages or whole dollar amounts (subject to the restrictions noted in this section). You can request an investment fund transfer through the 401(k) Savings Plan Web Center or Call Center at any time.

Unless the plan administrator provides for the contrary, or due to events outside of JPMorgan Chase's control, investment changes associated with reallocating and/or transferring your existing vested account balance are generally processed the same business day that the New York Stock Exchange is open if your request for a change is made before 4 p.m. Eastern Time or by the close of the New York Stock Exchange, whichever is earlier. Transactions will be reflected in your account through the 401(k) Savings Plan Call Center and Web Center the following business day. Please see "Daily Plan Processing" for more information.

You will be able to transfer and/or reallocate the portion of your account balance attributable to JPMorgan Chase non-matching contributions any time following the date that such contributions vest. Until the contributions are vested, the contribution will be invested in such investment funds as JPMorgan Chase designates.

If you transfer and/or reallocate balances to and from the JPMorgan Chase Common Stock Fund, you should be aware of the impact on the net unrealized appreciation (i.e., its increase in value while held by the plan) should you decide at a later date to take a distribution in the form of JPMorgan Chase common stock. You also may wish to consult a professional tax advisor. Please see "JPMorgan Chase Common Stock" for more information on net unrealized appreciation.

For your convenience, most 401(k) Savings Plan transactions — including investment fund reallocations, transfers, and distribution requests — are processed on a daily basis using the net asset value (NAV) per unit for the various investment funds. However, under certain circumstances your ability to engage in daily reallocations, transfers, and distribution requests among the investment funds at those prices may be affected.

In the case of all investment funds, daily transactions may be suspended in the event of market disruptions. This could occur if the New York Stock Exchange is closed or trading is restricted. Certain other events, such as system failure or acts of nature, may preclude daily processing.

Additionally, in the event that appropriate pricing for the securities in one or more investment funds cannot be determined, the plan may use the most recent NAVs to effectuate transactions, but may make subsequent adjustments to account balances to reflect the proper NAV, or the plan may suspend all transactions for that day and use NAVs for the investment funds on the next day that appropriate valuations exist.

If you transfer and/or reallocate balances out of any of the investment funds that hold shares of a mutual fund or any of the international funds (see chart below), you will be restricted from transferring any assets back into that same fund for 30 calendar days from the initial transfer/reallocation transaction.

Please Note: Other transactions, such as contributions and loan repayments, will not subject you to the 30-day restriction period. The plan reserves the right to impose similar restrictions on other funds.

Reallocating or transferring investments from the Stable Value Fund to the Short-Term Fixed Income Fund may be limited under certain circumstances. A reallocation or transfer is allowed only when the one-month rate of return (annualized) of the Stable Value Fund is at least one-half of 1% (i.e., 50 basis points) more than the one-month rate of return (annualized) of the Short-Term Fixed Income Fund as of the applicable valuation date. If the difference is less than 50 basis points, you can reallocate or transfer amounts from the Stable Value Fund to one of the plan's other investment funds — but not to the Short-Term Fixed Income Fund. After a 30-day waiting period, you can then reallocate or transfer money from one of those other investment funds to the Short-Term Fixed Income Fund.

Because the JPMorgan Chase Common Stock Fund consists of a single security, the 401(k) Savings Plan will adjust the account balances of certain participants who engage in a transaction — such as a reallocation, transfer, contribution, loan, withdrawal, or distribution request — on days of excessive activity in the fund. On any day that the net of all transactions exceeds a specified percentage (currently 3%) of the value of the fund, provided that the net transactions result in a purchase of stock by the fund, the account balances of only those participants who increased their interest in the investment fund by a transaction will be subject to an adjustment. Similarly, if the net transactions result in a sale of stock from the fund, then the account balances of only those participants who decreased their interest in the investment fund by a transaction will be subject to an adjustment. The adjustment will be based on the difference between the average sale or purchase price with respect to the net transactions and the price used to compute the initial net asset value (NAV) per unit for the transaction. Adjustments will only be made if the differences in these prices are deemed to be material to the fund. Such upward or downward adjustment(s), including related recordkeeping expenses, would generally be reflected in account balances within one or two days following the transaction.