Most 401(k) plans offer a money market fund which may be the most popular fund in the plan. Traditionally a place to seek refuge when the markets become stormy, money market funds may be altered significantly as a result of Securities and Exchange Commission reforms. Reform proposals have included some of the following potential changes:
- Moving to a variable Net Asset Value (NAV). This would be revolutionary since money market funds are currently viewed as capital preservation vehicles where plan participants can’t lose any of their initial investment.
