The employer is supposed to make a good-faith effort to provide you with retirement savings options. They usually do so by contracting with a firm, be it bank or brokerage, who then provides a limited number of investment options. The government does not require them to provide any specific safety factor or rate of return.

If you don't like the investment choices, drop your 401(k) contributions to zero and look into a Roth or Traditional IRA.

Your money MUST be invested in the market.. though it does not have to be in risky funds... a 401k cannot have money outside the market. Most employers allow you to choose between several funds they and the administrator have chosen. A money market account is usually one of the options. this will bear a small amount of interest earned and the risk as other funds have... Have you spoken to the administrator to see how and if you can move the money to a safer fund. Most administrators automatically put it into a certain portfolio based on your age.. the younger you are the riskier the investment portfolio.. They are required by to provide a BALANCED and VARIED choice of investments, they must have some risky and some safe.

You employer should provide several options. You should talk to the brokerage handling the fund to see if you can invest in safer funds.

Thank you — you have all been so helpful!

The money is currently in a "TAP" money market account right now, but in over 6 months sitting there, has failed to earn a penny — zero, nada, zip, so far — EXCEPT what is put in every 2 weeks from my paycheck! They do state this is their "safest" option and I do have access and authorization to move the money around to other options offered by the investment company (IF I pay them quite a bit to do it!) through the investment management company's web site, but a simple interest earning account is not an option — now I know why. I did not realize a 401K cannot be in a savings account...? Since the money is totally mine, yet never comes to me directly and is instead "invested on my behalf" by my employer through their subsidiary investment company, I don't seem to have any other choice.

My employer company is notorious for squeezing every cent it can out of their employees as a way to make extra money on their contracts (which are often bid to the bone since the government tends to choose the lowest bidder) so I am concerned that they are using my money in their own risky investments and that I will lose all or some of it. Seriously, this company has taken away pay scale raises, made employees pay back vacation time the employee had already had approved and taken, held onto 401K account funds when employees left for another job, as well cutting all sick leave and other benefits that the old contracting company provided — and they have cut corners on public safety — so I feel my concerns are justified. I just didn't know if I had any recourse or not. But now I guess I realize I don't and am stuck with their choice of investment accounts — although the previous employer, also a contract company for this job, allowed me to choose to put that money (which is a required part of my wages and benefits) into a secure and insured simple interest savings account, which worked out great for me since I did actually earn some interest on it. I am already retired from public service but still working to help make ends meet so I really need that money to stay safe in there.

As a former federal employee with fairly good options for retirement and a nice little secure thrift savings account, I have found working for this private company has certainly been a learning experience! Thanks again for all your input.

So, not only is your money invested in an account that is making you nothing, you do not prefer the account in which your employer has invested it.

Money Market Accounts are risky to you and you would prefer a more secure environment for it to settle.

The option that you can look into where you can roll your 401K over into an account that is safe and has both a guarantee on your principle investment and a minimum earnings interest rate as well would be an annuity. They would simply behave like a pension in your case, the retirement years. There are several options to choose from regarding annuities. I discuss these same concerns with clients who are uneasy about the markets and banks going under these days. I have more information if you're interested.

I hope this helps.