401(k) plans are retirement savings accounts that employers offer to their employees to help them save for retirement. The plan is set up and run by the employer, who decides what investment options will be made available to the employees. The more options the plan offers, the more expensive the plan can be for the company, so investment options may be limited. At times, you may want to move money from one investment, such as a company stock, stock mutual funds or bond mutual funds, to a money market account to consolidate your holdings or seek a more stable investment.
Contact your human resources department to find out what money market options, if any, your 401(k) plan offers. If your plan does not offer a money market option, you cannot transfer it to a money market account while the money remains in the 401(k) (see tips).
Decide how much money you want to move to the money market account. Because you are moving money within your 401(k), there are no limits from the IRS as to how much money you can move or how often you can move it.
Contact the financial institution that handles your 401(k) plan to inform them of your decision to move the money. The money will be automatically transferred to the money market account.