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Funding a Self Directed IRA
I recently left an employer where I had a significant 401K balance. Is it possible to roll a portion of the old 401k into a Self Directed IRA and roll the rest into my new employers 401K program?
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Yes, you can absolutely do that, or send the other portion to a conventional IRA of your choosing.
The self-directed IRA is at most levels an IRA like any other. It can accept contributions and rollovers from other plans in the same fashion as any other IRA, either during the initial setup or in the future.
The one thing I would be sure to check on is whether your new 401(k) would let you roll out any of the funds you are rolling in. Most will allow that, but some may not. You may not want to have that capital trapped in that plan until such time as you change jobs or reach age 59 1/2.