People close to retirement age who want control over their investments beyond their traditional 401(k) accounts tend to believe their options are limited. The conventional reasoning goes that they must either qualify for limited in-service distribution options (such as hardship withdrawals), be eligible for the rule of 55, or simply wait until they’re age 59½ to move the assets in their retirement account.
Thankfully, there’s another option: self-directed brokerage accounts (SDBAs), also known as brokerage sleeves in 401(k) plans. Yet research suggests that while many U.S. employers offer brokerage sleeves in their 401(k) accounts, few employees actually use them.
