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!


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 '20 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 '20 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 '20 at 20:54

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