Utilizing 401k Rollover to fund a Self Directed IRA

[Tom Voss]

So here's my issue... I'm open to any suggestions or ideas.

I've made an offer on a property that I would be purchasing with cash via a self directed IRA. The IRA is a little short for the purchase and repairs that would be needed afterwards, so my plan was to roll over some funds from my 401k to make up the difference. All was good until I received notice from the 401k provider today that they only allow you to roll funds out while you are still employed if they were rolled in. This puts up a big road block. As an added note here: I'm the company owner, and (don't laugh) 401k Administrator, so I should have known this before hatching this big plan.

Here are the options I see for myself:

1) Fire myself... roll out the entire 401k and then magically rehire myself a month or two down the road.  This sounds fun to me, but I'm not sure how the 401k provider handles rehires and eligibility.

2) Find a new 401k provider that is more flexible and move everyone over.  I only have a few employees that contribute so it wouldn't be a big deal, but I'm not sure about how much time it would take.

The amount that I needed to roll over is about $50k. Way more than I could contribute to the IRA in a year.

Any suggestions are appreciated.  Thanks!