Self-Directed 401(k)

Self-Directed 401(k)

What is a 401(k)?

The 401(k) is an employer-sponsored retirement plan under section 401(k) of the Internal Revenue Code. A 401(k) plan allows a worker to save for retirement while deferring income taxes on the saved money and earnings until withdrawal.

What is a Self-Directed 401(k)?

A self-directed 401(k) is technically no different than any other 401(k) or IRA. It’s unique because of the available investment options.

Most custodians only allow approved stocks, bonds, mutual funds and CDs. A truly self directed IRA/401(k) account, such as uDirect IRA Services offers, allows those types of investments PLUS real estate, notes, private placements, tax lien certificates and much more.

What Types of Investments are Allowed?

The IRS dictates what a 401(k) cannot invest in, instead of what they can invest in. For more information regarding allowable investments, please see IRA Investment Options.

What Investments are Not Allowed?

For more information regarding the rules governing allowable investments, please see IRA Rules.