Broker Check

Are You Making the Most of Your 401(k)?

In this ebook, we outline your 401(k) choices and explore critical mistakes to avoid. Download it today

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Do I Have Control Over My 401(k) Choices?

Do I Have Control Over My 401(k) Choices?

June 25, 2023

When it comes to 401(k) plans, there are a few options that allow employees to have more control over their investments:


Brokerage Windows: Some 401(k) plans offer a feature called a brokerage window, which allows you to invest in a wider range of securities beyond the funds offered by the plan. With a brokerage window, you can buy individual stocks, bonds, and other securities, and manage your own portfolio. You also have the ability to have a local advisor help manage this account as well if you want more help.


Self-Directed Accounts: Self-directed accounts are similar to brokerage windows, but typically allow for even greater investment flexibility. With a self-directed account, you can invest in a wider range of assets, including real estate, precious metals, and private equity. Sometimes, this option also allows for a local advisor to help manage the account.


Company Stock: Some 401(k) plans allow employees to invest in their company's stock. While this can be a good way to show support for your employer and potentially benefit from its growth, it's important to be cautious about over-investing in any one stock. Be aware of tax treatment of this stock before rolling it over. There are special net unrealized appreciation (NUA) tax benefits related to company stock.


It's important to note that not all 401(k) plans offer these options, and those that do may have restrictions or fees associated with them. It's also important to carefully consider the risks and benefits of any investment before making a decision.


If you're interested in exploring your 401(k) investment options or have questions about how to get started, it's a good idea to speak with a financial advisor who can help guide you through the process.