Converting Roth 401k to Self Directed for REI

[Brynn R.]

I am potentially interested in converting an existing Roth 401K to a self-directed account that allows for real estate investing. What is the cost/ benefit in your experience with making this sort of move? Currently the account is with Paychex and I would need to roll it over to Fidelity. I am unsure of the penalty to do so, I am planning to call Fidelity today but just curious about this approach.

Any positive experiences? Negative ones?

Thanks, in advance, for the input!

[Mike S.]

@Brynn Raber

I am not sure that Fidelity offers self directed 401k that let you invest in anything else than the stocks and mutual funds available through their platform.

If you have your own side business I would look at creating a self directed solo 401k where you would be the trustee.