How to convert 401k to self directed?

Question

I have some money in a Fidelity 401k (and still adding to it)...how can I convert to a self-directed account?  Any recommendations on brokers that can help?  I've called Fidelity customer support and was told they couldn't help me/didn't know (as they don't do/have self-directed accounts).  I'm still employed and contributing, so I can't withdrawal.  I can't loan enough from it to invest, but if I can move it, there's enough.

Bill Exeter · Answer

Hi @Taylor L.,

You are still employed and most employer plans, especially larger employer plans, will not allow you to take distributions.  However, some 401(k) Plans do allow an "in service" distribution.  You will find that most HR departments do not know if their plans allow this and probably do not even know what it is.  You will likely have to obtain a copy of your 401(k) Plan documents and review to see if an "in service" distribution is allows.

John Strock · Answer

That's the term I was looking for but couldn't think of...I'm looking for a IRA custodian, I'm told it's possible, just need to find one then I should be able to transfer (from my understanding).

Taylor L. · Answer

If you have a 401(k) with an employer you probably won't be able to move it away from them. There are CARES act related options for taking money from your 401(k) but there are some pretty big strings attached. Fidelity sure isn't going to help you with that, either way. They want your money to stay put. If you are able to convert to a self directed IRA then a self directed IRA custodian can help you with it.