how is a regular money market account different from a 401 k 
a regular money market account is similar to a savings account in that the money is liquid and offers a specific rate of interest a 401 k is a tax deferred account that acts as a vehicle for a wide range of investments to save for retirement contributions to a 401 k are made with pre tax money and you must pay taxes on your withdrawals 7 a regular money market account is funded with after tax dollars and there are no tax benefits associated with these accounts money market accounts come with an interest rate that guarantees returns but it can change over time a 401 k account invests money in funds stocks and bonds and returns are not guaranteed the bottom linea retirement money market account is a money market account that s part of a retirement account like an ira or 401 k in a retirement money market account your money is placed in lower risk fairly liquid accounts and investments like cds treasury bills and short term commercial paper this type of money market account is meant to be a temporary place for your cash before you move it into the account before it s invested in securities with greater potential for returns money market deposits are invested in low risk options that may pay only slightly better than a savings account but the benefit is that the funds are stable and liquid however the return on such an account tends to be lower than equity investments or fixed income investments so it s important to not wait move your money into investments where you can potentially earn better returns to maximize your retirement savings 