401K Control

Is it a good idea to have a self-directed 401k?

Take Control of Your 401(k) with a Self-Directed Brokerage Account (SDBA)

If you're looking for more control over your 401(k), a Self-Directed Brokerage Account (SDBA) may be the solution. Many workplace retirement plans offer an SDBA option, but few employees know how to use it. This page explains what an SDBA is, how it works, and how we help you make informed decisions about your 401(k).

Who can help with your 401(k)?

Exploring an SDBA (Self-Directed Brokerage Account) can potentially provide access to third-party management services for your retirement plan investments.

What Is an SDBA?

Self-Directed Brokerage Account (SDBA) is a window within your 401(k) that lets you invest in a broader selection of options beyond the standard plan menu. This can include ETFs, mutual funds, and in some cases, individual stocks and bonds.

Unlike the limited fund lineup offered by many employer-sponsored plans, the SDBA gives you greater flexibility and investment control—while keeping your account within your 401(k).

Who Can Use an SDBA?

Not all plans offer an SDBA, but for those that do, eligibility often depends on maintaining a minimum balance in the core 401(k) account. We can help you contact your plan provider or review the plan summary to confirm availability.

Common Questions About the SDBA

What are the benefits of an SDBA?

  • Wider investment options

  • Access to professional management

  • Potential for better diversification

What should I watch out for?

  • Additional fees may apply

  • More responsibility for monitoring investments

  • Not suitable for all investors

How We Help

At J. Martin Wealth, we help you:

  • Confirm if your 401(k) plan offers an SDBA

  • Understand any minimum core balance requirements

  • Review your investment options

  • Create a strategy that aligns with your goals

  • Determine if paperwork or approvals are needed

Need help understanding your 401(k) options?

If you're looking for 401(k) help or want to explore if an SDBA is right for you, we’re here to guide you—step by step.

"In a 2014 Financial Engines/AON Hewitt study, the annual median performance gap return between participants that had help and participants that did not have help was 3.32%, net of fees over the period 2006–2012. This difference can have a meaningful impact on wealth accumulation over time. For a 45-year old participant that seeks the help of a financial professional it could translate to 79% more wealth at age 65.3."

— FINANCIAL ENGINES & AON HEWITT

Is a Self-Directed 401(k) Right for You?

BEFORE GETTING STARTED WITH A SELF-DIRECTED BROKERAGE ACCOUNT (SDBA) - IDENTIFY THE OPPORTUNITY – CONTACT US TO FIND OUT IF YOU HAVE AN ELIGIBLE PLAN.

We will call your 401(k) plan custodian together or refer to the plan summary to determine the following:

  • Determine if third-party management is available.
  • Determine the minimum core balance requirement and other important factors.
  • Determine if there is any paperwork that requires the plan administrator's signature.