How to convert 401k to self directed?

3 Replies

I'm looking for an IRA/401k Custodian that can help, I have some 401k money with Fidelity...they don't have any option to allow me to self-direct and invest it, nor could they tell me what custodian could help with that (of course they don't want me to move my $ away). I'm looking to move it to a self-directed account/custodian. Any recommendations/contacts? I'm still employed and contributing to this 401k, so I'm limited on taking a draw or withdrawing on it. I've been told I could move it to a self-directed but not finding any good leads yet. Appreciate the help!

@John Strock

Be sure to double-check with your current 401(k) that you can rollover funds to another IRA of your choosing using what is called an in-service distribution. In most cases, you cannot move funds from a current employer 401(k) unless you are still working with the company beyond age 59 1/2. There are exceptions that allow for in-service distributions on other criteria, but they are rare. Why would Wall St. give you the opportunity to move funds if they don't have to?

You can take a loan or take a taxable distribution in some cases, but neither of those options would allow you to rollover to another retirement plan.

If you can do an in-service distribution, there are several quality providers of self-directed retirement plans active here on BP and a lot of good info on the topic. Depending on your investment goals, you could work with a custodian (singular, static, low dollar) or a specialty provider that offers checkbook control IRA and Solo 401(k) plans (more assets, transactions, dollars).