Trading using 401K

Yes, too.

I have called Schwab. They said it's true that I could buy and sell stock in my account

 

Through my employer I'm permitted to move as much of my 401k as I like into a "Self-Directed Brokerage Account" with Ameritrade. This account does not allow short sales, margin trading, futures, options or commodities.

 

Can it be transferred to an account that does allow futures trading?

 

almost right on example 1....you would be receiving a 1099R for the full 50k, meaning it is all taxable, AND THEN you would also have the 10pct penalty...

J

 

So I would have to pay 5K which is the penalty plus tax on the 50K? It hurts!

 

Just roll your 401K into an IRA, and problem gone. Why is this hard?

 

I trade the crap out of Direxion 2.5x funds in my Schwab 401k. My employer has it set up so its 100% self directed. I can buy any stock/ETF/CEF or mutual fund. No short selling, options, or futures, but I use Direxion and Ultra Pro funds for shorting and leverage.

 

You only have to quit your job to do it so finding a new job should be no problem, right?

 

It seems that trading 401K without converting it to IRA is the trick to master. Also, for some reason, futures trading using 401K is not allowed, (featured?) by most firms. Wonder why?

 

Only if you like to get double taxed on the money you pay back.