Plugging 401k Plan Leakage

Self-Directed Brokerage Accounts In 401k Plans — Generally A Bad Idea

A number of 401k plans offer a self-directed brokerage account window option for plan participants. In order to be legal, the brokerage account window option has to be offered to all participants within the plan on a nondiscriminatory basis. In practice, few participants (less than 1% in most plans) tend to use the brokerage account window option. Is offering a brokerage window option a good idea? Most of the time, probably not. Find out why in this post.