Self-Directed 401(k) — Investing Beyond Mutual Funds
Some 401(k) plans offer a 'brokerage window' (or are solo 401(k)s) that lets you buy individual stocks, ETFs, even real estate inside the plan.
Three flavors
1) Self-directed BROKERAGE WINDOW inside a regular 401(k) — adds individual stocks/ETFs to the menu. 2) SOLO 401(k) for self-employed with no employees — full custody control. 3) Self-directed IRA — for alternative assets like real estate, private debt, or precious metals.
What you can usually do
Buy individual stocks, ETFs, sometimes options. Brokerage windows from Fidelity, Schwab, Empower are common. Trade fees and 'core menu allocation' rules vary by plan.
What to avoid
Self-dealing (using IRA dollars to benefit yourself, family, or your business directly) is a 'prohibited transaction' that can disqualify the entire account.
Educational only — not tax, legal, or investment advice. Talk through your specific situation with a qualified advisor.