Typcially 401k plans allow for participants to make their own investment choices. Perhaps these are always referred to as self directed 401k plans.

Can the employer invest the assets of a 401k plan (say it only has elective deferrals and matches)? I don't think I have ever seen th is, but I iimagine it exists.

Thanks.

Under ERISA, the trustee of the plan has the legal responsibility for prudently investing all of the plan's assets on behalf of the participants. Plans are permitted (but not required) to allow participants to direct their own investments.

To be precise, it is the trustee, not the employer (often the same party) but yes, absolutely. We call them trustee-directed or pooled. Not so uncommon in small plans, especially if they started out as employer-only profit sharing, and added the (k) feature later.

Participant direction of investment of accounts is the not a good idea; the asset should be managed by a fiduciary. The prevailing practice of participant direction is misguided.

I'm with you QRDOphile. Professional management and decent returns for all.