A:

Generally, the permissible investments for qualified plans include publicly-traded securities, real estate, mutual funds and money market funds. Some plans even allow investment of options. To be sure, always refer to the plan document which will provide a description of the investment options under the plan and a description of any restrictions.



For more insight, see the 401(k) and Qualified Plans tutorial.



This question was answered by Denise Appleby
(Contact Denise)



RELATED FAQS

  1. What does it mean to roll a derivative contract?

    Find out more about derivative securities, how to roll forward a derivative contract and what it means when a derivative ...
  2. How can derivatives be used for risk management?

    Find out more about derivative securities, risk management and how derivatives could be used to hedge a position and protect ...
  3. How can I profit from monitoring open interest?

    Find out more about open interest, what the open interest indicates about an option and its underlying asset and how to profit ...
  4. Why would a company issue a rights offering?

    Understand more about a rights offering, and learn the most common reasons a company might have to issue a rights offering, ...
RELATED TERMS
  1. Exchange Traded Derivative

    A financial instrument whose value is based on the value of another ...
  2. Current Service Benefit

    The amount of pension benefit accrued by an employee who had ...
  3. Catastrophe Equity Put (CatEPut)

    Catastrophe equity puts are used to ensure that insurance companies ...
  4. Open Trade Equity (OTE)

    Open trade equity (OTE) is the equity in an open futures contract.
  5. Self Invested Personal Pension (SIPP)

    A tax-efficient retirement savings account available in Great ...
  6. Senior Move Manager

    Senior move managers (SMMs) help seniors downsize and relocate ...

You May Also Like

Related Articles
  1. Professionals

    5 Signs That You Have a Lousy 401(k) ...

  2. Entrepreneurship

    Why Small Business Owners Need Financial ...

  3. Professionals

    How the Robo-Advisors Differ (& How ...

  4. Professionals

    Target Date Funds: More Popular, Cheaper ...

  5. Mutual Funds & ETFs

    This Gold ETF is Fine for Traders, Not ...

Trading Center