Self directed 401k questions. PLEASE HELP!!

[Ken Scarbrough]

Hello everyone,

I have a question that been bothering me for quite some time. I’m hoping some of you with more experience can help spread some light on the situation. I’ll try to be to the point.

For years I’ve been reading about a strategy in which someone can use there 401k account to invest in real estate without the penalties by turning it into a Self Directed 401k. I’ve seen this in many articles and heard about it through podcasts.

However, when I try to do this I hit a wall. I’ve called the company that directs my 401k (Charles Schwab) and they tell me this is not something you can do. I’ve also called Empower Retirement when they took over managing the 401k and was told something similar.  My 401k I provided through work and I live in the state Indiana.   

Is there something I’m missing?? Thank you for any assistance that you can provide.