Estate Planning

How to Self-Direct Your 401(k): Take Control of Your Retirement

How-to-Self-Direct-Your-401k

Nash Riggins

Sep 12, 2023

Most employers offer a simple pathway to invest for the future via the traditional 401(k), but the truth is that your average 401(k) can be pretty rigid in terms of investment options, so it’s worth exploring the benefits of setting up a self-directed 401(k).

This complete guide explains what a self-directed 401(k) plan is, the pros and cons of self-directing your 401(k), and how to set one up.

Key Takeaways

  • A self-directed 401(k) is a retirement account that lets you invest in a wider range of asset classes to diversify your portfolio and “future-proof” your retirement fund.


  • Self-directed 401(k) plans generally require more time and market knowledge to make sure your portfolio is balanced and optimized.


  • Self-Directed 401(k) rollovers and withdrawals are subject to the same rules as traditional 401(k) plans.

What is a Self-Directed 401(k)?

what-is-a-selfdirected-401k

A self-directed 401(k) is a retirement account that gives you the flexibility to invest your income in a wider range of assets than a traditional 401(k) enabling you to have more control over your retirement.

With a traditional 401(k), your employer will often give you a limited choice of investment vehicles to grow your nest egg for the future. These options are usually limited to slow-growth mutual funds and index funds.

A self-directed 401(k) gives you more freedom with your investments by enabling you to invest portions (or all) of your monthly contributions in the funds or asset classes of your choice.

Jon Morgan, CEO of consultancy firm Venture Smarter, explains:

“With a self-directed 401(k), participants can invest in a broader range of assets beyond the typical options offered in regular 401(k) plans, such as stocks, bonds, and mutual funds” 

“They can also invest in alternative assets like real estate, private equity, precious metals, and even cryptocurrencies.”

Other, less conventional investment vehicles you can invest in using a self-directed 401(k) include:

  • Tax liens

  • Private placements

  • Energy investments

  • Equipment leasing

  • Foreign currency

Despite the freedoms offered by self-directing your 401(k), it’s important to note there are a couple of limitations surrounding potential retirement investments

For example, you can’t use a self-directed 401(k) to hold artwork, antiques, or insurance policies.

But generally speaking, a self-directed 401(k) is an option worth exploring for individuals who are keen to gain better control over their investments for retirement.

Why Would You Set Up a Self-Directed 401(k)?

what-is-a-selfdirected-401k

With a self-directed retirement plan, you get a wider range of options in terms of asset classes and more flexibility to invest different amounts of cash in different places, which may be the key to combating inflation.

According to ​​Spencer Hilligoss, CEO of Madison Investing, this flexibility empowers individuals to diversify their portfolios and future-proof their retirement funds. He states:

“In today’s economic climate, the recession resiliency of an investor’s portfolio is more important than ever. The ability to spread retirement funds outside of the stock market and into alternative assets such as real estate, precious metals, and more provides effective downside protection from inflation”

“Traditional investment vehicles such as stocks, often lack an adequate hedge against inflation, given their greater correlation with market performance vs. inflation rates.”

Utilizing a self-directed 401(k) can help you protect your nest egg from external forces, while also providing the same benefits that you could expect with a traditional 401(k) plan.

Both self-directed and traditional 401(k) plans offer pre-tax savings thanks to automatic payroll deductions, and both have rules when it comes to contribution limits, withdrawals, and rollovers.

If your employer offers a self-directed 401(k) plan as part of its wider range of retirement contribution options, you’ll probably be looking at the same annual contribution limits you’d expect to see with traditional 401(k).

But if you’re self-employed or take on a 401(k) plan outside of your employer’s offerings, the IRS will class that plan as a solo 401(k), which means you’ll benefit from higher contribution limits.

In 2023, the IRS limit for aggregate contributions to a solo 401(k) was $66,000 for those under 50 years old and $73,500 for those over 50. That’s almost three times the IRS contribution limit for traditional IRAs.

That means you can invest more aggressively when you self-direct a solo 401(k). By doing so, you should hopefully be able to generate bigger returns in a shorter amount of time, although it’s important to remember that with investments comes a bit of risk.

What Are the Risks of Setting Up a Self-Directed 401(k)?

One of the key risks of a self-directed 401 (k) is that you’re not going to get as much support from plan administrators.

Michael Hammelburger, CEO of the Bottom Line Group, a cost segregation firm based in Baltimore states:

“The possibility of making poor investment decisions or falling victim to fraudulent schemes is a significant risk. The account owner is solely responsible for conducting thorough due diligence and adhering to IRS regulations.”

“Furthermore, certain investments may be more risky and illiquid, making it critical to assess risk tolerance and maintain a well-balanced portfolio.”

In addition to risk, self-directed 401(k) plans also tend to generate higher maintenance and transaction fees. 

This is because when you’re in charge of your own portfolio, you’ll end up trading more often and each trade needs to be done through a broker and costs money; therefore, your trading fees could end up eating into your returns.

Self-directed 401(k) plans are also more high-maintenance. 

Unless you’re investing cash in an index fund or a professionally managed mutual fund, you’ll need to check in on your portfolio more frequently to see how it’s performing and make necessary adjustments. That takes time and some market knowledge that some people simply don’t have.

How Do You Set Up a Self-Directed 401(k)?

how-do-you-set-up-a-selfdirected-401k

If you’re comfortable with the risks of setting up a self-directed 401(k), the process of self-directing your 401(k) is pretty simple as they are available through most banks and financial institutions.

To get started, you need to be generating taxable income either on a self-employed basis or through an employer. Some employers offer a self-directed 401(k) alongside the more traditional plans, which will be managed by the same plan administrator.

If your employer doesn’t offer a self-directed option or you’re self-employed, you’ll need to find your own plan administrator or custodian to handle your plan’s administrative aspects.

Venture Smarter’s Jon Morgan explains:

“The process of setting up a self-directed 401(k) typically involves completing the necessary paperwork and complying with IRS regulations and reporting requirements.”

“Once the account is set up, you'll need to fund it by making contributions, either through employer contributions, employee salary deferrals, or both”.

Unfortunately, keeping up with all the right documentation and making sure it’s accessible by the right parties takes a lot of organization. That’s where a Family Operating System® like Trustworthy can offer vital support.

Trustworthy is a digital ecosystem that gives you a bird’s eye view of all of your essential family documents via one, intuitive dashboard. With Trustworthy, you can upload and create digital copies of all your financial information, insurance policies, identification, investment documentation, and everything in between.

You’re then able to share those essential documents with your financial planner or accountant securely to ensure you’re abiding by all the necessary IRS regulations.

Want to learn more? Explore the benefits of Trustworthy now.

What Are the Rules on Self-Directed 401(k) Rollovers and Withdrawals?

“Self-Directed 401(k) rollovers and withdrawals are subject to the same rules as traditional 401(k) plans,” says the Bottom Line Group’s Michael Hammelburger.

“When changing jobs or consolidating retirement accounts, rollovers allow funds to be transferred without incurring taxes or penalties. However, unless an exception applies, early withdrawals before the age of 59-and-a-half may be subject to income tax and a 10% early withdrawal penalty” he explains.

To make informed decisions about rollovers and withdrawals from a Self-Directed 401(k), you must stay up-to-date on all the relevant IRS guidelines. I also recommend you consult with a financial planner, accountant, or tax advisor.

It’s also worth noting that the IRS does prohibit some types of transactions when you’re using a self-directed 401(k). Prohibited transactions involve using your plan to benefit a disqualified person like a family member or plan fiduciary (which is somebody who services the plan).

Examples include:

  • Selling, exchanging, or leasing property to a disqualified person

  • Lending money from your plan to a disqualified person

  • Extending credit to a disqualified person

  • Buying goods, services, or facilities for a disqualified person

If you use a self-directed 401(k) to make a prohibited transaction, you’ll lose the tax advantages of your account investments, resulting in a big tax bill.

Frequently Asked Questions

What is the Difference Between a 401(k) and a Self-Directed 401(k)?

A self-directed 401(k) lets you choose how to invest your pre-tax retirement contributions. A traditional 401(k) plan limits your investment options to a choice of pre-approved funds.

What is the Difference Between a Self-Directed IRA and a Self-Directed 401(k)?

The key difference between a self-directed 401(k) and a self-directed IRA is that an employer will generally sponsor a 401(k) plan. You’re responsible for establishing and maintaining your own account when using an IRA.

How Much Can You Put Into a Self-Directed 401(k)?

The IRS contribution limit for employer-sponsored self-directed 401(k) plans is $22,500 in 2023 if you’re under 50 or $30,000 if you’re over 50. If you’re self-employed, the IRS limit is $66,000 if you’re under 50 years old and $73,500 if you’re over 50.

Estate Planning

How to Self-Direct Your 401(k): Take Control of Your Retirement

How-to-Self-Direct-Your-401k

Nash Riggins

Sep 12, 2023

Most employers offer a simple pathway to invest for the future via the traditional 401(k), but the truth is that your average 401(k) can be pretty rigid in terms of investment options, so it’s worth exploring the benefits of setting up a self-directed 401(k).

This complete guide explains what a self-directed 401(k) plan is, the pros and cons of self-directing your 401(k), and how to set one up.

Key Takeaways

  • A self-directed 401(k) is a retirement account that lets you invest in a wider range of asset classes to diversify your portfolio and “future-proof” your retirement fund.


  • Self-directed 401(k) plans generally require more time and market knowledge to make sure your portfolio is balanced and optimized.


  • Self-Directed 401(k) rollovers and withdrawals are subject to the same rules as traditional 401(k) plans.

What is a Self-Directed 401(k)?

what-is-a-selfdirected-401k

A self-directed 401(k) is a retirement account that gives you the flexibility to invest your income in a wider range of assets than a traditional 401(k) enabling you to have more control over your retirement.

With a traditional 401(k), your employer will often give you a limited choice of investment vehicles to grow your nest egg for the future. These options are usually limited to slow-growth mutual funds and index funds.

A self-directed 401(k) gives you more freedom with your investments by enabling you to invest portions (or all) of your monthly contributions in the funds or asset classes of your choice.

Jon Morgan, CEO of consultancy firm Venture Smarter, explains:

“With a self-directed 401(k), participants can invest in a broader range of assets beyond the typical options offered in regular 401(k) plans, such as stocks, bonds, and mutual funds” 

“They can also invest in alternative assets like real estate, private equity, precious metals, and even cryptocurrencies.”

Other, less conventional investment vehicles you can invest in using a self-directed 401(k) include:

  • Tax liens

  • Private placements

  • Energy investments

  • Equipment leasing

  • Foreign currency

Despite the freedoms offered by self-directing your 401(k), it’s important to note there are a couple of limitations surrounding potential retirement investments

For example, you can’t use a self-directed 401(k) to hold artwork, antiques, or insurance policies.

But generally speaking, a self-directed 401(k) is an option worth exploring for individuals who are keen to gain better control over their investments for retirement.

Why Would You Set Up a Self-Directed 401(k)?

what-is-a-selfdirected-401k

With a self-directed retirement plan, you get a wider range of options in terms of asset classes and more flexibility to invest different amounts of cash in different places, which may be the key to combating inflation.

According to ​​Spencer Hilligoss, CEO of Madison Investing, this flexibility empowers individuals to diversify their portfolios and future-proof their retirement funds. He states:

“In today’s economic climate, the recession resiliency of an investor’s portfolio is more important than ever. The ability to spread retirement funds outside of the stock market and into alternative assets such as real estate, precious metals, and more provides effective downside protection from inflation”

“Traditional investment vehicles such as stocks, often lack an adequate hedge against inflation, given their greater correlation with market performance vs. inflation rates.”

Utilizing a self-directed 401(k) can help you protect your nest egg from external forces, while also providing the same benefits that you could expect with a traditional 401(k) plan.

Both self-directed and traditional 401(k) plans offer pre-tax savings thanks to automatic payroll deductions, and both have rules when it comes to contribution limits, withdrawals, and rollovers.

If your employer offers a self-directed 401(k) plan as part of its wider range of retirement contribution options, you’ll probably be looking at the same annual contribution limits you’d expect to see with traditional 401(k).

But if you’re self-employed or take on a 401(k) plan outside of your employer’s offerings, the IRS will class that plan as a solo 401(k), which means you’ll benefit from higher contribution limits.

In 2023, the IRS limit for aggregate contributions to a solo 401(k) was $66,000 for those under 50 years old and $73,500 for those over 50. That’s almost three times the IRS contribution limit for traditional IRAs.

That means you can invest more aggressively when you self-direct a solo 401(k). By doing so, you should hopefully be able to generate bigger returns in a shorter amount of time, although it’s important to remember that with investments comes a bit of risk.

What Are the Risks of Setting Up a Self-Directed 401(k)?

One of the key risks of a self-directed 401 (k) is that you’re not going to get as much support from plan administrators.

Michael Hammelburger, CEO of the Bottom Line Group, a cost segregation firm based in Baltimore states:

“The possibility of making poor investment decisions or falling victim to fraudulent schemes is a significant risk. The account owner is solely responsible for conducting thorough due diligence and adhering to IRS regulations.”

“Furthermore, certain investments may be more risky and illiquid, making it critical to assess risk tolerance and maintain a well-balanced portfolio.”

In addition to risk, self-directed 401(k) plans also tend to generate higher maintenance and transaction fees. 

This is because when you’re in charge of your own portfolio, you’ll end up trading more often and each trade needs to be done through a broker and costs money; therefore, your trading fees could end up eating into your returns.

Self-directed 401(k) plans are also more high-maintenance. 

Unless you’re investing cash in an index fund or a professionally managed mutual fund, you’ll need to check in on your portfolio more frequently to see how it’s performing and make necessary adjustments. That takes time and some market knowledge that some people simply don’t have.

How Do You Set Up a Self-Directed 401(k)?

how-do-you-set-up-a-selfdirected-401k

If you’re comfortable with the risks of setting up a self-directed 401(k), the process of self-directing your 401(k) is pretty simple as they are available through most banks and financial institutions.

To get started, you need to be generating taxable income either on a self-employed basis or through an employer. Some employers offer a self-directed 401(k) alongside the more traditional plans, which will be managed by the same plan administrator.

If your employer doesn’t offer a self-directed option or you’re self-employed, you’ll need to find your own plan administrator or custodian to handle your plan’s administrative aspects.

Venture Smarter’s Jon Morgan explains:

“The process of setting up a self-directed 401(k) typically involves completing the necessary paperwork and complying with IRS regulations and reporting requirements.”

“Once the account is set up, you'll need to fund it by making contributions, either through employer contributions, employee salary deferrals, or both”.

Unfortunately, keeping up with all the right documentation and making sure it’s accessible by the right parties takes a lot of organization. That’s where a Family Operating System® like Trustworthy can offer vital support.

Trustworthy is a digital ecosystem that gives you a bird’s eye view of all of your essential family documents via one, intuitive dashboard. With Trustworthy, you can upload and create digital copies of all your financial information, insurance policies, identification, investment documentation, and everything in between.

You’re then able to share those essential documents with your financial planner or accountant securely to ensure you’re abiding by all the necessary IRS regulations.

Want to learn more? Explore the benefits of Trustworthy now.

What Are the Rules on Self-Directed 401(k) Rollovers and Withdrawals?

“Self-Directed 401(k) rollovers and withdrawals are subject to the same rules as traditional 401(k) plans,” says the Bottom Line Group’s Michael Hammelburger.

“When changing jobs or consolidating retirement accounts, rollovers allow funds to be transferred without incurring taxes or penalties. However, unless an exception applies, early withdrawals before the age of 59-and-a-half may be subject to income tax and a 10% early withdrawal penalty” he explains.

To make informed decisions about rollovers and withdrawals from a Self-Directed 401(k), you must stay up-to-date on all the relevant IRS guidelines. I also recommend you consult with a financial planner, accountant, or tax advisor.

It’s also worth noting that the IRS does prohibit some types of transactions when you’re using a self-directed 401(k). Prohibited transactions involve using your plan to benefit a disqualified person like a family member or plan fiduciary (which is somebody who services the plan).

Examples include:

  • Selling, exchanging, or leasing property to a disqualified person

  • Lending money from your plan to a disqualified person

  • Extending credit to a disqualified person

  • Buying goods, services, or facilities for a disqualified person

If you use a self-directed 401(k) to make a prohibited transaction, you’ll lose the tax advantages of your account investments, resulting in a big tax bill.

Frequently Asked Questions

What is the Difference Between a 401(k) and a Self-Directed 401(k)?

A self-directed 401(k) lets you choose how to invest your pre-tax retirement contributions. A traditional 401(k) plan limits your investment options to a choice of pre-approved funds.

What is the Difference Between a Self-Directed IRA and a Self-Directed 401(k)?

The key difference between a self-directed 401(k) and a self-directed IRA is that an employer will generally sponsor a 401(k) plan. You’re responsible for establishing and maintaining your own account when using an IRA.

How Much Can You Put Into a Self-Directed 401(k)?

The IRS contribution limit for employer-sponsored self-directed 401(k) plans is $22,500 in 2023 if you’re under 50 or $30,000 if you’re over 50. If you’re self-employed, the IRS limit is $66,000 if you’re under 50 years old and $73,500 if you’re over 50.

Estate Planning

How to Self-Direct Your 401(k): Take Control of Your Retirement

How-to-Self-Direct-Your-401k

Nash Riggins

Sep 12, 2023

Most employers offer a simple pathway to invest for the future via the traditional 401(k), but the truth is that your average 401(k) can be pretty rigid in terms of investment options, so it’s worth exploring the benefits of setting up a self-directed 401(k).

This complete guide explains what a self-directed 401(k) plan is, the pros and cons of self-directing your 401(k), and how to set one up.

Key Takeaways

  • A self-directed 401(k) is a retirement account that lets you invest in a wider range of asset classes to diversify your portfolio and “future-proof” your retirement fund.


  • Self-directed 401(k) plans generally require more time and market knowledge to make sure your portfolio is balanced and optimized.


  • Self-Directed 401(k) rollovers and withdrawals are subject to the same rules as traditional 401(k) plans.

What is a Self-Directed 401(k)?

what-is-a-selfdirected-401k

A self-directed 401(k) is a retirement account that gives you the flexibility to invest your income in a wider range of assets than a traditional 401(k) enabling you to have more control over your retirement.

With a traditional 401(k), your employer will often give you a limited choice of investment vehicles to grow your nest egg for the future. These options are usually limited to slow-growth mutual funds and index funds.

A self-directed 401(k) gives you more freedom with your investments by enabling you to invest portions (or all) of your monthly contributions in the funds or asset classes of your choice.

Jon Morgan, CEO of consultancy firm Venture Smarter, explains:

“With a self-directed 401(k), participants can invest in a broader range of assets beyond the typical options offered in regular 401(k) plans, such as stocks, bonds, and mutual funds” 

“They can also invest in alternative assets like real estate, private equity, precious metals, and even cryptocurrencies.”

Other, less conventional investment vehicles you can invest in using a self-directed 401(k) include:

  • Tax liens

  • Private placements

  • Energy investments

  • Equipment leasing

  • Foreign currency

Despite the freedoms offered by self-directing your 401(k), it’s important to note there are a couple of limitations surrounding potential retirement investments

For example, you can’t use a self-directed 401(k) to hold artwork, antiques, or insurance policies.

But generally speaking, a self-directed 401(k) is an option worth exploring for individuals who are keen to gain better control over their investments for retirement.

Why Would You Set Up a Self-Directed 401(k)?

what-is-a-selfdirected-401k

With a self-directed retirement plan, you get a wider range of options in terms of asset classes and more flexibility to invest different amounts of cash in different places, which may be the key to combating inflation.

According to ​​Spencer Hilligoss, CEO of Madison Investing, this flexibility empowers individuals to diversify their portfolios and future-proof their retirement funds. He states:

“In today’s economic climate, the recession resiliency of an investor’s portfolio is more important than ever. The ability to spread retirement funds outside of the stock market and into alternative assets such as real estate, precious metals, and more provides effective downside protection from inflation”

“Traditional investment vehicles such as stocks, often lack an adequate hedge against inflation, given their greater correlation with market performance vs. inflation rates.”

Utilizing a self-directed 401(k) can help you protect your nest egg from external forces, while also providing the same benefits that you could expect with a traditional 401(k) plan.

Both self-directed and traditional 401(k) plans offer pre-tax savings thanks to automatic payroll deductions, and both have rules when it comes to contribution limits, withdrawals, and rollovers.

If your employer offers a self-directed 401(k) plan as part of its wider range of retirement contribution options, you’ll probably be looking at the same annual contribution limits you’d expect to see with traditional 401(k).

But if you’re self-employed or take on a 401(k) plan outside of your employer’s offerings, the IRS will class that plan as a solo 401(k), which means you’ll benefit from higher contribution limits.

In 2023, the IRS limit for aggregate contributions to a solo 401(k) was $66,000 for those under 50 years old and $73,500 for those over 50. That’s almost three times the IRS contribution limit for traditional IRAs.

That means you can invest more aggressively when you self-direct a solo 401(k). By doing so, you should hopefully be able to generate bigger returns in a shorter amount of time, although it’s important to remember that with investments comes a bit of risk.

What Are the Risks of Setting Up a Self-Directed 401(k)?

One of the key risks of a self-directed 401 (k) is that you’re not going to get as much support from plan administrators.

Michael Hammelburger, CEO of the Bottom Line Group, a cost segregation firm based in Baltimore states:

“The possibility of making poor investment decisions or falling victim to fraudulent schemes is a significant risk. The account owner is solely responsible for conducting thorough due diligence and adhering to IRS regulations.”

“Furthermore, certain investments may be more risky and illiquid, making it critical to assess risk tolerance and maintain a well-balanced portfolio.”

In addition to risk, self-directed 401(k) plans also tend to generate higher maintenance and transaction fees. 

This is because when you’re in charge of your own portfolio, you’ll end up trading more often and each trade needs to be done through a broker and costs money; therefore, your trading fees could end up eating into your returns.

Self-directed 401(k) plans are also more high-maintenance. 

Unless you’re investing cash in an index fund or a professionally managed mutual fund, you’ll need to check in on your portfolio more frequently to see how it’s performing and make necessary adjustments. That takes time and some market knowledge that some people simply don’t have.

How Do You Set Up a Self-Directed 401(k)?

how-do-you-set-up-a-selfdirected-401k

If you’re comfortable with the risks of setting up a self-directed 401(k), the process of self-directing your 401(k) is pretty simple as they are available through most banks and financial institutions.

To get started, you need to be generating taxable income either on a self-employed basis or through an employer. Some employers offer a self-directed 401(k) alongside the more traditional plans, which will be managed by the same plan administrator.

If your employer doesn’t offer a self-directed option or you’re self-employed, you’ll need to find your own plan administrator or custodian to handle your plan’s administrative aspects.

Venture Smarter’s Jon Morgan explains:

“The process of setting up a self-directed 401(k) typically involves completing the necessary paperwork and complying with IRS regulations and reporting requirements.”

“Once the account is set up, you'll need to fund it by making contributions, either through employer contributions, employee salary deferrals, or both”.

Unfortunately, keeping up with all the right documentation and making sure it’s accessible by the right parties takes a lot of organization. That’s where a Family Operating System® like Trustworthy can offer vital support.

Trustworthy is a digital ecosystem that gives you a bird’s eye view of all of your essential family documents via one, intuitive dashboard. With Trustworthy, you can upload and create digital copies of all your financial information, insurance policies, identification, investment documentation, and everything in between.

You’re then able to share those essential documents with your financial planner or accountant securely to ensure you’re abiding by all the necessary IRS regulations.

Want to learn more? Explore the benefits of Trustworthy now.

What Are the Rules on Self-Directed 401(k) Rollovers and Withdrawals?

“Self-Directed 401(k) rollovers and withdrawals are subject to the same rules as traditional 401(k) plans,” says the Bottom Line Group’s Michael Hammelburger.

“When changing jobs or consolidating retirement accounts, rollovers allow funds to be transferred without incurring taxes or penalties. However, unless an exception applies, early withdrawals before the age of 59-and-a-half may be subject to income tax and a 10% early withdrawal penalty” he explains.

To make informed decisions about rollovers and withdrawals from a Self-Directed 401(k), you must stay up-to-date on all the relevant IRS guidelines. I also recommend you consult with a financial planner, accountant, or tax advisor.

It’s also worth noting that the IRS does prohibit some types of transactions when you’re using a self-directed 401(k). Prohibited transactions involve using your plan to benefit a disqualified person like a family member or plan fiduciary (which is somebody who services the plan).

Examples include:

  • Selling, exchanging, or leasing property to a disqualified person

  • Lending money from your plan to a disqualified person

  • Extending credit to a disqualified person

  • Buying goods, services, or facilities for a disqualified person

If you use a self-directed 401(k) to make a prohibited transaction, you’ll lose the tax advantages of your account investments, resulting in a big tax bill.

Frequently Asked Questions

What is the Difference Between a 401(k) and a Self-Directed 401(k)?

A self-directed 401(k) lets you choose how to invest your pre-tax retirement contributions. A traditional 401(k) plan limits your investment options to a choice of pre-approved funds.

What is the Difference Between a Self-Directed IRA and a Self-Directed 401(k)?

The key difference between a self-directed 401(k) and a self-directed IRA is that an employer will generally sponsor a 401(k) plan. You’re responsible for establishing and maintaining your own account when using an IRA.

How Much Can You Put Into a Self-Directed 401(k)?

The IRS contribution limit for employer-sponsored self-directed 401(k) plans is $22,500 in 2023 if you’re under 50 or $30,000 if you’re over 50. If you’re self-employed, the IRS limit is $66,000 if you’re under 50 years old and $73,500 if you’re over 50.

Try Trustworthy today.

Try the Family Operating System® for yourself. You (and your family) will love it.

No credit card required.

Try Trustworthy today.

Try the Family Operating System® for yourself. You (and your family) will love it.

No credit card required.

Try Trustworthy today.

Try the Family Operating System® for yourself. You (and your family) will love it.

No credit card required.

Related Articles

funeral planning timeline
funeral planning timeline
funeral planning timeline

Feb 20, 2024

Funeral Planning Timeline: How Long Does it Really Take?

writing a heartfelt obituary for your husband
writing a heartfelt obituary for your husband
writing a heartfelt obituary for your husband

Feb 15, 2024

Writing a Heartfelt Obituary for Your Husband: Inspiring Examples

planning your funeral
planning your funeral
planning your funeral

Feb 14, 2024

Planning Your Funeral: The Best Age To Start

crafting a loving obituary for your son
crafting a loving obituary for your son
crafting a loving obituary for your son

Feb 14, 2024

Crafting a Loving Obituary For Your Son: Meaningful Examples

improving communication between caregivers and doctors
improving communication between caregivers and doctors
improving communication between caregivers and doctors

Jan 18, 2024

Improving Communication Between Caregivers and Doctors

copy of a death certificate
copy of a death certificate
copy of a death certificate

Nov 29, 2023

Can Anyone Get a Copy of a Death Certificate? Who Is Authorized?

original death certificate vs. certified copy
original death certificate vs. certified copy
original death certificate vs. certified copy

Nov 25, 2023

Original Death Certificate vs. Certified Copy: Key Differences And Why They Matter

handle negative aspects of the deceased's life in a eulogy
handle negative aspects of the deceased's life in a eulogy
handle negative aspects of the deceased's life in a eulogy

Nov 25, 2023

How Do You Handle Negative Aspects of the Deceased's Life in a Eulogy?

more then one eulogy at a funeral
more then one eulogy at a funeral
more then one eulogy at a funeral

Nov 25, 2023

Can There Be More Then One Eulogy at a Funeral? Etiquette Explained

parent retirement pension
parent retirement pension
parent retirement pension

Nov 24, 2023

My Dad Died, Can I Get His Retirement Pension?

death certificate copies
death certificate copies
death certificate copies

Nov 24, 2023

How Many Copies of a Death Certificate Should You Get?

can a eulogy be funny
can a eulogy be funny
can a eulogy be funny

Nov 24, 2023

Can a Eulogy Be Funny? Yes, Here Are 10 Respectful but Funny Examples

receive inheritance money without any issues
receive inheritance money without any issues
receive inheritance money without any issues

Nov 24, 2023

How Do You Receive Inheritance Money WITHOUT any issues?

tax refund of a deceased person
tax refund of a deceased person
tax refund of a deceased person

Nov 17, 2023

Who Gets The Tax Refund of A Deceased Person? An Accountant Answers

how to start a eulogy
how to start a eulogy
how to start a eulogy

Nov 17, 2023

How To Start a Eulogy: 15 Heartfelt Examples

son talking to elder parents seriously
son talking to elder parents seriously
son talking to elder parents seriously

Nov 14, 2023

How To Discuss End-of-Life Care With Parents (Simple Guide)

how to cancel a deceased person's subscriptions
how to cancel a deceased person's subscriptions
how to cancel a deceased person's subscriptions

Nov 14, 2023

How To Cancel a Deceased Person's Subscriptions the EASY Way

what should you not put in a eulogy
what should you not put in a eulogy
what should you not put in a eulogy

Nov 8, 2023

What Should You Not Put in a Eulogy (9 Things To Avoid)

how are estates distributed if there's no will
how are estates distributed if there's no will
how are estates distributed if there's no will

Nov 7, 2023

How Are Estates Distributed If There's No Will? A Lawyer Explains Intestate

microsoft word obituary template
microsoft word obituary template
microsoft word obituary template

Nov 6, 2023

Does Microsoft Word Have an Obituary Template?

how to post an obituary on facebook
how to post an obituary on facebook
how to post an obituary on facebook

Nov 6, 2023

How To Post an Obituary on Facebook: A Step-by-Step Guide

death certificate for estate & probate process
death certificate for estate & probate process
death certificate for estate & probate process

Nov 6, 2023

Why Do You Need A Death Certificate For Estate & Probate Process?

correct errors on a death certificate
correct errors on a death certificate
correct errors on a death certificate

Nov 2, 2023

How Do I Correct Errors on a Death Certificate? And, How Long Does It Take?

steps for writing a eulogy for mom
steps for writing a eulogy for mom
steps for writing a eulogy for mom

Nov 2, 2023

12 Steps For Writing a Eulogy For Mom

steps for writing a eulogy for dad
steps for writing a eulogy for dad
steps for writing a eulogy for dad

Nov 2, 2023

12 Steps for Writing a Eulogy for Dad

who does the obituary when someone dies
who does the obituary when someone dies
who does the obituary when someone dies

Nov 1, 2023

Who Does The Obituary When Someone Dies?

Nov 1, 2023

How Late Is Too Late For An Obituary? 6 Steps To Take Today

how-much-does-obituary-cost
how-much-does-obituary-cost
how-much-does-obituary-cost

Nov 1, 2023

How Much Does It Cost To Publish An Obituary? Breaking It Down

reasons you need an obituary
reasons you need an obituary
reasons you need an obituary

Nov 1, 2023

6 Reasons You Need an Obituary (Plus 6 Reasons You Don't)

where do you post an obituary
where do you post an obituary
where do you post an obituary

Oct 30, 2023

Where Do You Post an Obituary: A Step-By-Step Guide

obituary vs death note
obituary vs death note
obituary vs death note

Oct 30, 2023

Obituary vs Death Note: What Are the Key Differences?

buying a house with elderly parent
buying a house with elderly parent
buying a house with elderly parent

Oct 5, 2023

Buying A House With Elderly Parent: 10 Things To Know

trapped caring for elderly parents
trapped caring for elderly parents
trapped caring for elderly parents

Sep 14, 2023

I'm Trapped Caring for Elderly Parents

401k and minors
401k and minors
401k and minors

Oct 5, 2023

401(k) and Minors: Can a Minor be a Beneficiary?

How-to-Self-Direct-Your-401k
How-to-Self-Direct-Your-401k
How-to-Self-Direct-Your-401k

Sep 12, 2023

How to Self-Direct Your 401(k): Take Control of Your Retirement

grandparents
grandparents
grandparents

Aug 3, 2023

The Ultimate Guide to Decluttering and Simplifying Your Home as You Age

Aug 3, 2023

The Essential Guide to Preparing for Retirement

Estate Planning For Blended Families (Complete Guide)
Estate Planning For Blended Families (Complete Guide)
Estate Planning For Blended Families (Complete Guide)

Aug 3, 2023

Estate Planning For Blended Families (Complete Guide)

Estate Planning For Physicians (Complete Guide)
Estate Planning For Physicians (Complete Guide)
Estate Planning For Physicians (Complete Guide)

Aug 3, 2023

Estate Planning For Physicians (Complete Guide)

are you legally responsible for your elderly parents
are you legally responsible for your elderly parents
are you legally responsible for your elderly parents

Jul 14, 2023

Are You Legally Responsible For Your Elderly Parents?

Multi-generational family walking through a field
Multi-generational family walking through a field
Multi-generational family walking through a field

Jun 7, 2023

How To Travel With Elderly Parent: Here's How to Prepare

Retirement center
Retirement center
Retirement center

Jun 6, 2023

Checklist For Moving A Parent To Assisted Living

Elderly parents with son
Elderly parents with son
Elderly parents with son

Jun 6, 2023

How to Set Up A Trust For An Elderly Parent: 6 Easy Steps

Daughter helping her mom review paperwork
Daughter helping her mom review paperwork
Daughter helping her mom review paperwork

Jun 6, 2023

How To Stop Elderly Parents From Giving Money Away (9 Tips)

Elderly parents signing documents
Elderly parents signing documents
Elderly parents signing documents

Jun 6, 2023

Should Elderly Parents Sign Over Their House? Pros & Cons

A couple looking at their computer
A couple looking at their computer
A couple looking at their computer

May 17, 2023

Estate Planning: A Comprehensive Guide

Helping elderly parents - the complete guide
Helping elderly parents - the complete guide
Helping elderly parents - the complete guide

May 2, 2023

Helping Elderly Parents: The Complete Guide

Family seated on sofa having a discussion
Family seated on sofa having a discussion
Family seated on sofa having a discussion

May 1, 2023

Trustworthy guide: How to organize your digital information

Person signing a document
Person signing a document
Person signing a document

Apr 15, 2023

Can My Husband Make a Will Without My Knowledge?

Son on father's shoulders
Son on father's shoulders
Son on father's shoulders

Apr 15, 2023

What is a Last Will and Testament (also known as a Will)?

A couple looking at a document with a calculator
A couple looking at a document with a calculator
A couple looking at a document with a calculator

Apr 15, 2023

Can A Wife Sell Deceased Husband's Property (6 Rules)

Paper shredding
Paper shredding
Paper shredding

Apr 15, 2023

Should I Shred Documents Of A Deceased Person? (5 Tips)

Can I Change My Power of Attorney Without A Lawyer?
Can I Change My Power of Attorney Without A Lawyer?
Can I Change My Power of Attorney Without A Lawyer?

Apr 15, 2023

Can I Change My Power of Attorney Without A Lawyer?

Can You Have Two Power of Attorneys? (A Lawyer Answers)
Can You Have Two Power of Attorneys? (A Lawyer Answers)
Can You Have Two Power of Attorneys? (A Lawyer Answers)

Apr 15, 2023

Can You Have Two Power of Attorneys? (A Lawyer Answers)

Do Attorneys Keep Copies Of a Will? (4 Things To Know)
Do Attorneys Keep Copies Of a Will? (4 Things To Know)
Do Attorneys Keep Copies Of a Will? (4 Things To Know)

Apr 15, 2023

Do Attorneys Keep Copies Of a Will? (4 Things To Know)

Estate Planning for a Special Needs Child (Complete Guide)
Estate Planning for a Special Needs Child (Complete Guide)
Estate Planning for a Special Needs Child (Complete Guide)

Apr 15, 2023

Estate Planning for a Special Needs Child (Complete Guide)

Estate Planning For Childless Couples (Complete Guide)
Estate Planning For Childless Couples (Complete Guide)
Estate Planning For Childless Couples (Complete Guide)

Apr 15, 2023

Estate Planning For Childless Couples (Complete Guide)

Estate Planning For Elderly Parents
Estate Planning For Elderly Parents
Estate Planning For Elderly Parents

Apr 15, 2023

Estate Planning For Elderly Parents (Complete Guide)

Woman talking with an advisor in a house
Woman talking with an advisor in a house
Woman talking with an advisor in a house

Apr 15, 2023

Estate Planning For High Net Worth & Large Estates

Estate Planning For Irresponsible Children (Complete Guide)
Estate Planning For Irresponsible Children (Complete Guide)
Estate Planning For Irresponsible Children (Complete Guide)

Apr 15, 2023

Estate Planning For Irresponsible Children (Complete Guide)

How To Get Power of Attorney For Parent With Dementia?
How To Get Power of Attorney For Parent With Dementia?
How To Get Power of Attorney For Parent With Dementia?

Apr 15, 2023

How To Get Power of Attorney For Parent With Dementia?

I Lost My Power of Attorney Papers, Now What?
I Lost My Power of Attorney Papers, Now What?
I Lost My Power of Attorney Papers, Now What?

Apr 15, 2023

I Lost My Power of Attorney Papers, Now What?

White house
White house
White house

Apr 15, 2023

Is It Better To Sell or Rent An Inherited House? (Pros & Cons)

Is It Wrong To Move Away From Elderly Parents? My Advice
Is It Wrong To Move Away From Elderly Parents? My Advice
Is It Wrong To Move Away From Elderly Parents? My Advice

Apr 15, 2023

Is It Wrong To Move Away From Elderly Parents? My Advice

Moving An Elderly Parent Into Your Home: What To Know
Moving An Elderly Parent Into Your Home: What To Know
Moving An Elderly Parent Into Your Home: What To Know

Apr 15, 2023

Moving An Elderly Parent Into Your Home: What To Know

Moving An Elderly Parent to Another State: What To Know
Moving An Elderly Parent to Another State: What To Know
Moving An Elderly Parent to Another State: What To Know

Apr 15, 2023

Moving An Elderly Parent to Another State: What To Know

What If Witnesses To A Will Cannot Be Found? A Lawyer Answers
What If Witnesses To A Will Cannot Be Found? A Lawyer Answers
What If Witnesses To A Will Cannot Be Found? A Lawyer Answers

Apr 15, 2023

What If Witnesses To A Will Cannot Be Found? A Lawyer Answers

A couple reviewing documents and signing them
A couple reviewing documents and signing them
A couple reviewing documents and signing them

Apr 15, 2023

What To Bring To Estate Planning Meeting (Checklist)

A couple in a meeting with a professional
A couple in a meeting with a professional
A couple in a meeting with a professional

Apr 15, 2023

When Should You Get An Estate Plan? (According To A Lawyer)

Which Sibling Should Take Care of Elderly Parents?
Which Sibling Should Take Care of Elderly Parents?
Which Sibling Should Take Care of Elderly Parents?

Apr 15, 2023

Which Sibling Should Take Care of Elderly Parents?

Who Can Override A Power of Attorney? (A Lawyer Answers)
Who Can Override A Power of Attorney? (A Lawyer Answers)
Who Can Override A Power of Attorney? (A Lawyer Answers)

Apr 15, 2023

Who Can Override A Power of Attorney? (A Lawyer Answers)

Can Power of Attorney Sell Property Before Death?
Can Power of Attorney Sell Property Before Death?
Can Power of Attorney Sell Property Before Death?

Apr 15, 2023

Can Power of Attorney Sell Property Before Death?

Person at a coffee shop using their laptop with a credit card in hand
Person at a coffee shop using their laptop with a credit card in hand
Person at a coffee shop using their laptop with a credit card in hand

Apr 15, 2023

Can The Executor Of A Will Access Bank Accounts? (Yes, Here's How)

Elderly parents working with a professional
Elderly parents working with a professional
Elderly parents working with a professional

Apr 15, 2023

Complete List of Things To Do For Elderly Parents (Checklist)

Reviewing paperwork with lawyer
Reviewing paperwork with lawyer
Reviewing paperwork with lawyer

Apr 15, 2023

How To Get Power of Attorney For A Deceased Person?

Apr 15, 2023

How To Help Elderly Parents From A Distance? 7 Tips

Woman talking with her parents
Woman talking with her parents
Woman talking with her parents

Apr 15, 2023

Legal Documents For Elderly Parents: Checklist

House
House
House

Apr 15, 2023

Selling Elderly Parents Home: How To Do It + Mistakes To Avoid

Elderly woman who looks like she has a headache
Elderly woman who looks like she has a headache
Elderly woman who looks like she has a headache

Apr 15, 2023

What To Do When A Sibling Is Manipulating Elderly Parents

Two men reviewing paperwork
Two men reviewing paperwork
Two men reviewing paperwork

Apr 6, 2023

Can An Out of State Attorney Write My Will? (A Lawyer Answers)

People working at a computer, working on a stack of bills
People working at a computer, working on a stack of bills
People working at a computer, working on a stack of bills

Mar 15, 2023

Settling an Estate: A Step-by-Step Guide

Check on the table
Check on the table
Check on the table

Feb 10, 2023

My Deceased Husband Received A Check In The Mail (4 Steps To Take)

The Benefits of Working With an Experienced Estate Planning Attorney
The Benefits of Working With an Experienced Estate Planning Attorney
The Benefits of Working With an Experienced Estate Planning Attorney

Feb 7, 2023

The Benefits of Working With an Experienced Estate Planning Attorney

How To Track Elderly Parents' Phone (2 Options)
How To Track Elderly Parents' Phone (2 Options)
How To Track Elderly Parents' Phone (2 Options)

Feb 6, 2023

How To Track Elderly Parents' Phone (2 Options)

Someone filling out a social security benefits application form
Someone filling out a social security benefits application form
Someone filling out a social security benefits application form

Feb 1, 2023

Can You Collect Your Parents' Social Security When They Die?

Veteran Benefits book
Veteran Benefits book
Veteran Benefits book

Feb 1, 2023

How Do I Stop VA Benefits When Someone Dies (Simple Guide)

Person typing on a laptop with a credit card in hand
Person typing on a laptop with a credit card in hand
Person typing on a laptop with a credit card in hand

Feb 1, 2023

Can You Pay Money Into A Deceased Person's Bank Account?

Deleting A Facebook Account When Someone Dies (Step by Step)
Deleting A Facebook Account When Someone Dies (Step by Step)
Deleting A Facebook Account When Someone Dies (Step by Step)

Feb 1, 2023

Deleting A Facebook Account When Someone Dies (Step by Step)

Two people sitting across a desk speaking to each other with papers on desk.
Two people sitting across a desk speaking to each other with papers on desk.
Two people sitting across a desk speaking to each other with papers on desk.

Feb 1, 2023

Does The DMV Know When Someone Dies?

Gavel
Gavel
Gavel

Feb 1, 2023

How To Find A Deceased Person's Lawyer (5 Ways)

How To Plan A Celebration Of Life (10 Steps With Examples)
How To Plan A Celebration Of Life (10 Steps With Examples)
How To Plan A Celebration Of Life (10 Steps With Examples)

Feb 1, 2023

How To Plan A Celebration Of Life (10 Steps With Examples)

How To Stop Mail Of A Deceased Person? A Simple Guide
How To Stop Mail Of A Deceased Person? A Simple Guide
How To Stop Mail Of A Deceased Person? A Simple Guide

Feb 1, 2023

How To Stop Mail Of A Deceased Person? A Simple Guide

Social security card, 1040 form
Social security card, 1040 form
Social security card, 1040 form

Feb 1, 2023

How to Stop Social Security Direct Deposit After Death

Firearm
Firearm
Firearm

Feb 1, 2023

How To Transfer Firearms From A Deceased Person (3 Steps)

How To Write An Obituary (5 Steps With Examples)
How To Write An Obituary (5 Steps With Examples)
How To Write An Obituary (5 Steps With Examples)

Feb 1, 2023

How To Write An Obituary (5 Steps With Examples)

Unlock iPhone When Someone Dies (5 Things To Try)
Unlock iPhone When Someone Dies (5 Things To Try)
Unlock iPhone When Someone Dies (5 Things To Try)

Feb 1, 2023

Unlock iPhone When Someone Dies (5 Things To Try)

Close-up of a tire on silver car on a road
Close-up of a tire on silver car on a road
Close-up of a tire on silver car on a road

Feb 1, 2023

What Happens To A Leased Vehicle When Someone Dies?

Do Wills Expire? 6 Things To Know
Do Wills Expire? 6 Things To Know
Do Wills Expire? 6 Things To Know

Jan 31, 2023

Do Wills Expire? 6 Things To Know

Person typing on a laptop
Person typing on a laptop
Person typing on a laptop

Jan 31, 2023

How To Get Into a Deceased Person's Computer (Microsoft & Apple)

Fingerprint documentation
Fingerprint documentation
Fingerprint documentation

Jan 31, 2023

Why Do Funeral Homes Take Fingerprints of the Deceased?

Foreclosure in front of a home
Foreclosure in front of a home
Foreclosure in front of a home

Jan 31, 2023

What To Do If Your Deceased Parents' Home Is In Foreclosure

Questions To Ask An Estate Attorney After Death (Checklist)
Questions To Ask An Estate Attorney After Death (Checklist)
Questions To Ask An Estate Attorney After Death (Checklist)

Jan 31, 2023

Questions To Ask An Estate Attorney After Death (Checklist)

Woman looking stressed while holding a document at her computer
Woman looking stressed while holding a document at her computer
Woman looking stressed while holding a document at her computer

Jan 31, 2023

What Happens If a Deceased Individual Owes Taxes?

Elderly people talking with professional
Elderly people talking with professional
Elderly people talking with professional

Jan 31, 2023

Components of Estate Planning: 6 Things To Consider

What To Do If Insurance Check Is Made Out To A Deceased Person
What To Do If Insurance Check Is Made Out To A Deceased Person
What To Do If Insurance Check Is Made Out To A Deceased Person

Jan 22, 2023

What To Do If Insurance Check Is Made Out To A Deceased Person

Scattered photograph negatives
Scattered photograph negatives
Scattered photograph negatives

Jan 8, 2023

What Does a Typical Estate Plan Include?

Can I Do A Video Will? (Is It Legitimate & What To Consider)
Can I Do A Video Will? (Is It Legitimate & What To Consider)
Can I Do A Video Will? (Is It Legitimate & What To Consider)

Apr 15, 2022

Can I Do A Video Will? (Is It Legitimate & What To Consider)

Estate Planning For Green Card Holders (Complete Guide)
Estate Planning For Green Card Holders (Complete Guide)
Estate Planning For Green Card Holders (Complete Guide)

Apr 15, 2022

Estate Planning For Green Card Holders (Complete Guide)

Chair in a bedroom
Chair in a bedroom
Chair in a bedroom

Mar 2, 2022

What Does Your “Property” Mean?

Gavel
Gavel
Gavel

Mar 2, 2022

What is the Uniform Trust Code? What is the Uniform Probate Code?

Female statue balancing scales
Female statue balancing scales
Female statue balancing scales

Mar 2, 2022

Do You Need to Avoid Probate?

Person signing document
Person signing document
Person signing document

Mar 2, 2022

How is a Trust Created?

stethoscope
stethoscope
stethoscope

Mar 2, 2022

What Are Advance Directives?

Couple standing on the beach
Couple standing on the beach
Couple standing on the beach

Mar 2, 2022

What does a Trustee Do?

Large house exterior
Large house exterior
Large house exterior

Mar 2, 2022

What is an Estate Plan? (And why you need one)

Gavel
Gavel
Gavel

Mar 2, 2022

What is Probate?

United States Map
United States Map
United States Map

Mar 2, 2022

What Is Your Domicile & Why It Matters

Man organizing paperwork
Man organizing paperwork
Man organizing paperwork

Mar 2, 2022

What Is a Power of Attorney for Finances?

A baby and toddler lying on a bed
A baby and toddler lying on a bed
A baby and toddler lying on a bed

Mar 1, 2022

Should your family consider an umbrella insurance policy?

Woman typing on laptop on a table with tea, plant, notebooks
Woman typing on laptop on a table with tea, plant, notebooks
Woman typing on laptop on a table with tea, plant, notebooks

Mar 1, 2022

Do I need a digital power of attorney?

Person signing documents
Person signing documents
Person signing documents

Apr 6, 2020

What Exactly is a Trust?