As title. Since the market is a bit volatile now, wondering if I can keep the 401k contributions as cash and invest them later. Or does it necessarily need to be invested in one of the options that the brokerage provides? Thanks!


1 Answer 1


401(k) accounts are required to have a number of choices. There will be a fund that's low low risk, likely made up of T-Bills of very short duration. Not quite a money market fund. It may have a zero return if rates shoot up quickly, but a tiny risk of less than zero in a given year.

  • Despite it not having anything to do with the actual question I would have liked you to add that timing the market is a bad idea, especially for a retirement account.
    – xyious
    Mar 20, 2020 at 19:20
  • A number of congressmen who sold while the market was still above 3000 on the S&P would beg to differ with you. Mar 20, 2020 at 20:14
  • Agreed.... I was assuming we don't have inside information and/or it's illegal for us to trade based on inside information :)
    – xyious
    Mar 20, 2020 at 20:54

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