You can change which funds your 401(k) money sits in through Fidelity NetBenefits in a few minutes

Log into your Fidelity NetBenefits account, go to the "Accounts" tab, find your 401(k) plan, and look for "Rebalance" or "Make Changes to Investments." From there you can move money that is already in your account from one fund to another, or change where new contributions go. The process is when ready — your money moves the same business day, though the actual trade settles overnight.

You have two separate choices to make: where your existing balance goes (called rebalancing) and where your paychecks will be invested going forward (called contribution allocation). Most people change both at the same time, but you can do them separately if you want.

Key Takeaways

  • Rebalancing moves money you already have from one fund to another and takes effect the same business day.
  • Contribution allocation tells Fidelity where to put your next paycheck, and you can change it anytime without affecting money already invested.
  • You can make both changes in the "Accounts" section of NetBenefits under your 401(k) plan name.
  • There are no fees or taxes when you move money between funds inside your 401(k), as long as you stay within the plan.

How to rebalance money already in your account

Start by logging into NetBenefits and clicking "Accounts" at the top. Find your 401(k) plan in the list — it will show your current balance. Click on the plan name to open it.

Look for a button or link that says "Rebalance," "Make Changes to Investments," or "Manage Investments." The exact wording changes depending on your plan, but it will be on the main plan page. Click it. You will see a list of all the funds currently in your account with the dollar amount in each one.

Next to each fund, you will see a field where you can enter a new dollar amount or a percentage. Decide how much you want to move out of each fund and into the others. For example, if you have $10,000 in a stock fund and $5,000 in a bond fund and you want to move $2,000 from stocks to bonds, you would change the stock fund to $8,000 and the bond fund to $7,000. The total must equal your current account balance.

Once you have entered the new amounts, click "Submit" or "Confirm." Fidelity will show you a summary of the changes. Review it, then click to confirm again. The trade executes the same business day, usually within a few hours.

How to change where your paychecks go

Contribution allocation is separate from rebalancing. Even if you do not move your existing money, you can tell Fidelity to put future contributions into different funds.

In the same "Accounts" section, look for "Change Contribution Allocation," "Manage Contributions," or "Investment Elections." Click it. You will see a form asking you to choose funds and enter a percentage for each one. Your percentages must add up to 100 percent.

For example, you might put 60 percent of new contributions into a stock index fund, 30 percent into an international fund, and 10 percent into a bond fund. From that point forward, every paycheck will be split that way. You can change this anytime without affecting money already invested.

Understanding the fund options in your plan

Your employer's 401(k) plan offers a specific menu of funds — you cannot invest in any fund you want, only the ones your company has chosen. Common options include target-date funds (which automatically shift from stocks to bonds as you near retirement), index funds (which track a market like the S&P 500), actively managed funds (where a manager picks individual stocks), and stable value or money market funds (which are very conservative).

Click on any fund name in NetBenefits to see its fact sheet. This shows you what the fund invests in, its expense ratio (the annual cost), and how it has performed over the past one, five, and ten years. Read this before moving large amounts of money.

What happens if you change funds right before the market closes

If you submit a rebalance or contribution change after the market closes (usually after 4 p.m. Eastern time on a business day), Fidelity will process it the next business day instead. The price you get is the closing price on the day the trade actually settles, not the day you submitted it. This is called forward pricing and is standard for all 401(k) plans.

You cannot time the market by waiting for a certain price. Once you submit, you get whatever price the fund has when the trade settles. This is why it is usually better to rebalance when you decide to, rather than waiting for a "better" market day.

Fees and tax consequences of moving money

Moving money between funds inside your 401(k) does not cost you anything and does not trigger taxes. This is one of the big advantages of a 401(k) — you can rebalance as often as you want without a tax bill. The money stays in the plan the whole time.

However, if you withdraw money from your 401(k) to your bank account, that is taxable and may have a 10 percent penalty if you are under 59½. That is a different transaction and not what rebalancing does. Rebalancing keeps the money inside the plan.

Undoing a change you just made

If you submitted a rebalance or contribution change and when ready regret it, call Fidelity's 401(k) customer service line (the number is on your statement or in NetBenefits under "Contact Us"). If the trade has not yet settled — usually within a few hours of submission — they may be able to cancel it. Once it settles, you cannot undo it, but you can submit a new rebalance to move the money back.

This is why it is worth double-checking your math before you click "Confirm." Take a moment to make sure your new percentages or dollar amounts add up and match what you actually want to do.

Frequently Asked Questions

Can I move money between my 401(k) and my Roth IRA through NetBenefits?

No. NetBenefits only manages your employer 401(k) plan. Moving money from a 401(k) to a Roth IRA is called a conversion and requires a separate process through your IRA provider. You would need to withdraw the money from your 401(k) first, which has tax consequences. Talk to a tax professional before doing this.

What if I cannot find the rebalance button in NetBenefits?

Some plans restrict how often you can rebalance or do not allow it at all. Check your plan documents or call Fidelity at the number on your statement. You can always change where future contributions go, even if you cannot move existing money.

Do I have to rebalance my 401(k) every year?

No, but many people do. Over time, the funds that perform well grow larger and throw off your original balance. Rebalancing once a year or when one fund gets much bigger than you planned keeps your risk level steady. It is optional, not required.

If I change my contribution allocation, does it affect my employer match?

No. Your employer match is a separate deposit and goes into whatever funds you have chosen. Changing where your contributions go does not change how much your employer contributes, only where that money is invested.

How long does it take to see the change in my account balance?

The trade settles overnight, so you will see the new balance in your account the next business day. On the day you submit, you may still see the old balance. By the following morning, the new amounts will show up.