Reply #2: You can't roll it into an IRA . . .

[scruffy]

if you are still employed by the company. Your only options are to stop contributing and let it sit or to choose different investments.

BUT - if this is your first 401(k) and if you have years to go before retirement, I would do some research into the funds available and choose a couple that are fairly aggressive. I say this on the assumption that you won't be needing this $ for many years . .. if that is the case, you have plenty of time to ride out whatever the stock market may throw at you. I would rather invest aggresively when young than be too conservative and regret it later.

When you say that of the 40 funds offered, less than 10 have returns in the double digits . .. what time frame are you looking at - and what kind of funds are they? Lots of funds last year were more or less flat, although international ones did pretty well. If you're young, you don't need to be looking at bonds, balanced, or even lifestyle funds.

All in all, I would say stick with the 401(k), put in as much as you can afford, and do some research to check out some equity funds that will give you a decent return.