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401K

Self Directed 401K Plans

Usually Through Your Employer

A 401K retirement plan is a special type of account funded through pre-tax payroll deductions. The funds in the account can be invested in a number of different stocks, bonds, mutual funds or other assets and are not taxed on any capital gains, dividends or interest until they are withdrawn.

In order to self-direct a 401K portfolio, the plan must allow for all or a portion of the investment to be self-directed. This may not be the case for many employer-sponsored 401K programs. If you want to self-direct, you will need to contact your plan administrator to verify accessibility for the self-direct process.

What if you are no longer employed?

If you participated in a 401K plan and have terminated your employment, you have several options:

  • You can leave your 401K in place
  • You can roll over your 401K to another 401K
  • You can roll over your 401K to an IRA
    • By rolling over to an IRA, you gain the advantage of self-directing your retirement portfolio.Â