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What is a self-directed brokerage account in a 401(k)?
A self-directed brokerage account is an option inside some 401(k)s. It lets you invest beyond the funds your company picked, and the money stays in your 401(k).
Last reviewed: November 2026
The same thing goes by many names
Schwab calls its version the Personal Choice Retirement Account, or PCRA. Fidelity calls its version BrokerageLink. Empower offers Empower Brokerage.
Some 401(k) documents call it a "brokerage window." Others say "brokerage option" or "SDBA." They all mean the same thing. Here is the Schwab PCRA, explained.
How it works inside your 401(k)
Your 401(k) has a regular fund list that your company picked. A self-directed brokerage account sits next to that list, inside the same 401(k).
You choose how much to move into it. Schwab puts it this way: "You decide how much money to transfer from your retirement plan into your PCRA."
You move money from your regular funds into the brokerage option on your 401(k) website. Then you buy investments with that cash.
You can move it back. Sell to cash inside the brokerage option, then transfer back to your regular funds, whenever your 401(k) allows.
Each 401(k) sets the timing. Utah's state 401(k), for example, allows one transfer in or out every seven calendar days.
Withdrawals and loans come from your regular funds. Utah's state 401(k) says money must move back to its regular funds first. Minnesota's state plan says you cannot withdraw directly from the brokerage account.
Same tax treatment
It is still your 401(k). Schwab says its PCRA "resides within your employer-sponsored retirement plan." Fidelity says BrokerageLink accounts are "subject to plan rules."
Because it is part of your 401(k), the money in it keeps the same tax treatment. Some 401(k)s keep pre-tax and Roth money in separate brokerage accounts.
What you can typically invest in
It depends on your 401(k)'s rules. Your company decides what the brokerage option allows, and it can switch off whole types of investments.
A fully open Schwab PCRA can hold individual stocks, ETFs, bonds and mutual funds. Chevron's filing says its Fidelity brokerage option offers about 10,000 mutual funds.
Gold and commodity funds are often allowed, because they trade as funds or ETFs. Physical gold is not.
Some allow funds only. Minnesota's state plan offers mutual funds and ETFs, and says you cannot buy individual stocks, bonds or options.
Some things are never allowed in a Schwab PCRA. These include margin, short sales, futures, collectibles, private placements and physical precious metals.
How common it is
In Utah and Texas, only about 1 in 8 401(k)s offer one. Nationally, it's closer to one in four. A 2025 industry survey by PSCA put it at 25% of plans. Vanguard's 2026 report put it at 23% of its plans.
Where a 401(k) offers it, about 1 in 100 people use it. That figure is from Vanguard's How America Saves, for the end of 2025.
Who offers one
Many well-known employers include one. Each name below comes from the employer's own filing or its published 401(k) materials.
| Employer or plan | Provider named in the source | Share of 401(k) money invested in it |
|---|---|---|
| State of Utah (Utah Retirement Systems 401(k)) | Schwab PCRA | Not published |
| Texa$aver (Texas state employees) | Not named | About 5 cents of every dollar (ERS, 2023) |
| Southwest Airlines pilots' plan | Schwab PCRA | About 21 cents of every dollar |
| Adobe | Charles Schwab | Not published |
| Intermountain Health | Schwab self-directed accounts | About 6 cents of every dollar |
| Microsoft | Fidelity BrokerageLink | About 8 cents of every dollar |
| Intel | Not named | About 12 cents of every dollar |
| AT&T | Fidelity BrokerageLink | About 7.5 cents of every dollar |
| Chevron | Fidelity BrokerageLink | Almost 3 cents of every dollar |
Shares are of 401(k) money, not of people. Figures come from each plan's 2024 audited financial statements unless marked. Utah's and Texas's plans are governmental and file no Form 5500.
Southwest Airlines' main employee 401(k) has one too. Your 401(k) may have one as well. Here is how to check.
Questions people ask
Is it still my 401(k)?
Yes. The brokerage option sits inside your 401(k), not outside it. Schwab says its PCRA "resides within your employer-sponsored retirement plan." Your 401(k)'s rules still apply.
Is it as tax-sheltered as the retirement account?
Yes. The money never leaves your 401(k), so it keeps the same tax treatment. Moving money between your regular funds and the brokerage option is a move inside the 401(k).
Any additional fees?
Sometimes. Schwab doesn't charge a fee for the account itself. Your 401(k) may charge an administrative fee, and some trades cost money. Utah's state 401(k) charges $12 a quarter. Fidelity says there is no annual fee for a BrokerageLink account.
Can I have ALL my money in the brokerage link?
Usually not all of it. Many 401(k)s require some money to stay in the regular funds. Utah's state 401(k) requires $1,000 to stay there. Texas Instruments requires 10% of your balance to stay in its regular funds when you transfer. Some 401(k)s also cap how much you can move.
Does money go in automatically or do I do it manually?
In many 401(k)s you move it yourself. You transfer money from your regular funds on your 401(k) website. Some people say new paychecks still land in the regular funds first. Your 401(k)'s rules decide.
Is it worth it?
That's a question for an advisor, and we'll help you find one if you'd like. Your employer can't give investment advice, so nobody at work can walk you through it. It depends on your balance, your time and what you want from your 401(k). Most people stick with the funds their company picked. That's fine.
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Education only, not investment advice. Your 401(k)'s own documents govern. If anything here differs from your 401(k)'s rules, your 401(k) is right.