How to change your 401(k) fund allocation in Fidelity NetBenefits

Log into your Fidelity NetBenefits account, go to the "Accounts" tab, and select your 401(k) plan. Click "Make a Trade" or "Rebalance" (the exact label depends on your plan). Choose the fund you want to sell, enter the dollar amount or percentage you want to move, then select the fund you want to buy. Review the transaction and confirm. The change takes effect at the next trading day's close, usually within 24 hours.

Your employer's plan may limit how often you can move money — some allow daily changes, others restrict you to once per quarter. Check your plan documents or call the plan administrator's number on the back of your statement to confirm your plan's rules before you start.

If you cannot find the "Make a Trade" button or if your plan shows "trading restricted," your employer may have frozen exchanges temporarily (common during market volatility or plan changes). Contact Fidelity at the number on your statement or your employer's benefits team to ask when trading will reopen.

Key Takeaways

  • You move money between 401(k) funds through the "Make a Trade" or "Rebalance" section of your NetBenefits account, not through a separate form.
  • The transaction settles at the next market close, usually within one business day.
  • Your employer's plan sets limits on how often you can trade — read your plan documents or call the plan administrator to learn your specific rules.
  • If the trade button is missing or disabled, your plan may have a temporary trading freeze; contact Fidelity or your employer's benefits team to confirm.
  • You can move money as a dollar amount or as a percentage of your account balance.

Step-by-step walkthrough of the trade screen

After you click "Make a Trade," you will see two sections: "Sell" and "Buy." In the Sell section, a dropdown menu shows all the funds currently in your account. Select the fund you want to move money out of. Next to it, enter either a dollar amount (for example, $5,000) or a percentage (for example, 25%) of that fund's current balance.

In the Buy section, select the fund you want to move the money into from another dropdown. The system will show you the fund's name, ticker symbol, and current price per share. Once you have entered both sides of the trade, click "Preview" or "Review Order." Fidelity will show you a summary: the fund you are selling, the amount, the fund you are buying, and the estimated number of shares you will receive. If everything looks correct, click "Confirm" or "Submit."

After you confirm, you will see a confirmation number on screen and receive an email with the same number. Keep that number in case you need to contact Fidelity later about the trade. The money will not move immediately — it settles at the market close that day or the next trading day, depending on when you submitted the trade.

Understanding settlement timing and trading windows

A trade you submit during market hours (9:30 a.m. to 4 p.m. Eastern Time on a business day) settles at that day's market close. A trade submitted after market close or on a weekend settles at the next market close. You cannot trade on weekends, holidays, or days the stock market is closed.

Once a trade settles, your old fund balance decreases and your new fund balance increases. You will see the updated amounts in your account the next business day. During the settlement period, your money is still invested in the old fund — it has not been held in cash.

Some plans impose a "trading window" — a specific period each month or quarter when you are allowed to move money. Outside that window, the trade button will be grayed out or unavailable. Your plan documents or the NetBenefits website will show your trading window dates. If you miss the window, you will have to wait until the next one opens.

What happens if you want to move all your money to one fund

If you want to consolidate everything into a single fund, you can do this through rebalancing. Instead of making multiple individual trades, look for a "Rebalance" or "Target Allocation" tool in NetBenefits. This tool lets you enter the percentage you want in each fund (for example, 100% in one fund, 0% in all others) and submit all the changes at once.

Rebalancing is often faster than making separate trades and may count as a single transaction against your plan's trading limits. However, not all plans offer this feature. If you do not see a rebalance option, you can make individual trades instead — sell each fund one at a time and buy the target fund with the proceeds.

Restrictions and limits on fund changes

Your employer's plan sets the rules for how often you can trade. Common limits are: once per day, once per month, once per quarter, or only during open enrollment. Some plans allow unlimited trades; others allow only a few per year. These limits exist to discourage frequent trading and reduce administrative costs for the plan.

In addition, some plans restrict which funds you can trade into or out of. For example, a plan might allow you to move money out of a company stock fund only once per year, or it might not allow you to buy certain funds at all. Check your plan's investment policy or call your employer's benefits team to learn what restrictions apply to you.

If you hit your trading limit and need to make an urgent change, contact your employer's benefits team or Fidelity to ask if an exception can be made. Some plans allow exceptions for life events like retirement, job loss, or a significant change in income.

Fees and tax consequences of moving money

Fidelity does not charge a fee to move money between funds within your 401(k) plan. The trade is free. However, some funds charge an internal expense ratio — a small annual percentage that comes out of the fund's returns. When you switch funds, you are not charged a transaction fee, but you will start paying the expense ratio of the new fund instead of the old one.

Moving money between 401(k) funds is not a taxable event. You do not owe income tax on the money you move, and you do not have to report it on your tax return. The money stays in the plan and continues to grow tax-deferred until you withdraw it in retirement.

If you sell a fund at a loss and buy another, you cannot claim that loss on your taxes — 401(k) losses do not generate tax deductions. Conversely, if you sell a fund at a gain, you do not owe tax on the gain as long as the money stays in the plan.

Troubleshooting common problems

The "Make a Trade" button is missing or grayed out. This usually means your plan's trading window is closed, or your plan does not allow self-directed trading. Check your plan documents for trading window dates. If the window is open and the button is still missing, log out and log back in, or try a different browser. If that does not work, contact Fidelity or your employer's benefits team.

You submitted a trade but do not see it in your account. Trades take time to settle. If you submitted the trade during market hours, it will settle at today's close. If you submitted it after hours or on a weekend, it will settle at the next market close. Check back the next business day. If more than two business days have passed and the trade still has not settled, contact Fidelity with your confirmation number.

You want to undo a trade you just submitted. If the trade has not yet settled, you may be able to cancel it. Log back into NetBenefits, go to your trade history or pending orders, and look for a "Cancel" button. If the trade has already settled, you cannot undo it, but you can make a new trade to move the money back to the original fund.

The fund you want to buy is not showing up in the dropdown. Your plan may not offer that fund, or it may be restricted. Check your plan's investment menu on NetBenefits or in your plan documents to see which funds are available. If the fund is listed but not appearing in the dropdown, contact Fidelity to ask why.

Frequently Asked Questions

Can I change my 401(k) funds as often as I want?

No. Your employer's plan sets a limit on how often you can trade — common limits are once per day, once per month, or once per quarter. Some plans allow unlimited trades, but many do not. Check your plan documents or call your employer's benefits team to learn your specific limit.

If I move money from one fund to another, do I owe taxes?

No. Moving money between funds inside your 401(k) is not a taxable event. The money stays in the plan and continues to grow tax-deferred. You will not owe income tax until you withdraw the money in retirement.

How long does it take for a fund change to show up in my account?

The trade settles at the market close on the day you submit it (if submitted during market hours) or the next market close (if submitted after hours or on a weekend). You will see the updated balances in your account the next business day.

What if I want to move money but the trading window is closed?

You will have to wait until the next trading window opens. Some plans allow exceptions for life events like retirement or job loss — contact your employer's benefits team to ask if an exception applies to you.

Does Fidelity charge a fee to move money between funds?

No. Fidelity does not charge a transaction fee to move money between 401(k) funds. However, the new fund may have an internal expense ratio that comes out of the fund's returns each year.