abstract:A stable value fund is a type of investment available in 401(k) plans and other defined contribution plans as well as some 529 or tuition assistance plans. Stable value funds are often made available in these plans under a name that intends to describe the nature of the fund (such as capital preservation fund, fixed-interest fund, capital accumulation fund, principal protection fund, guaranteed fund, preservation fund, or income fund among others).
Instead, you have to move your money first to, say, a stock fund, for 90 days or so. (Cash withdrawals have no waiting periods.) And in the rare case that your employer ends its participation in a stablevaluefund, your money might be held for up to 12 months (still earning a return) as the fund unwinds.
In most 401(k) plans, to move money from a stable-value account into a money-market fund or short-term bond fund, plan participants have to be invested in a riskier option for at least 90 days.