Can you put your 401k in a regular savings account?

Can you put your 401(k) towards a plain savings account until you decide where to allocate the funds?

Explantion: I’m planning on opening a 401(k) account with my employer, and they said I can invest my 401(k) contributions in stocks or whatever investment that I want, but until I decide which investment to put my 401(k) contributions into, can you put your 401(k) towards a regular savings account until you decide where you would like to invest?


Most companies will put any money into a money market account until the contributions are invested in mutual funds, stocks, or other investments.

3 Responses to Can you put your 401k in a regular savings account?

  1. bigbadwolf says:

    Money from your check will have to go directly into one of the choices of stocks/programs/bonds/small caps/large caps ect…that is available thru your 401k program (they are all different). The money is taken out pre-tax, so you won’t have to pay taxes on it until you take it out. You usually take it out at a later date when you are old and earn less and so there-fore you won’t have to pay as much in taxes. So to answer your question, no. It cannot go into your own personal saving account until you decide.
    Well I take that back. You can take money from you’re check and put it into your own IRA, or roth IRA, until you decide what particular option to go with in your 401k, but you won’t be able to take the money from the IRA, and move it over once you decide.

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  3. Net Advisor says:

    You can put the 401(k) contributions into the 401(k)’s money market fund account. It can sit there forever it you want. You don’t have to put it into stocks or bonds or other funds until you feel ready.

    Keep in mind that historically one of the best retirement strategies is Dollar Cost Averaging into index funds such as the S&P 500 Index, Mid Cap 400 Index.

    Dollar Cost Averaging

    S&P 500 Index

    Mid Cap 400 Index

    You don’t have to think about it, as long as you are looking 10-15 years out for retirement.

    Seek a professional advisor’s to help you with your 401(k) who has at least 10+ years experience in retirement planning and the financial markets.

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