Rolling an ESOP and or 401K Into Investible Cash?

[Josh Eckelbarger]

Need an experts advise here...I have recently left a W2 income and began working as a Sole Proprietor. I had a 401K (25K) and ESOP (75K) (Employee Stock Ownership Plan) through my previous employment. The ESOP is being held in a Money Market account until 5 years after my employment was terminated and the 401k is currently available to be rolled over ect...

My question is...is there a way to access these funds without being taxed out the wazzoo? My financial advisor has recommended a self managed IRA...I would like to avoid this as I understand there is a considerable amount of hassle to satisfy the requirements. Ideally, I would love to be able to pull out this cash to use to invest in RE as I would be able to control my return much more than I'm able to now. Any thoughts or suggestions are very appreciated.