Why can’t you manage my current employer 401(k)?

There are two primary reasons that FutureAdvisor cannot manage or trade directly in active employer 401(k)s:

  1. Active employer 401(k)s are regulated under ERISA, and as a result, do not typically allow advisors to link on and trade directly in the account on behalf of the client.

  2. Your employer establishes a 401(k) at a particular custodian, through what’s called a plan administrator. The plan cannot be moved while it is active, and the plan administrator is typically a separate department from the standard brokerage arm of the business. As a result, the plan cannot typically be moved to an account type or custodian that can work with FutureAdvisor and allow direct trading.

In addition, 401(k)s typically have limited investment options available through the plan, which impacts our ability to effectively manage it.

However, there are two ways FutureAdvisor may be able to assist you with your 401(k):

  1. If your 401(k) is held at Fidelity or TD Ameritrade, check with your HR department to see if your plan is eligible for Fidelity’s BrokerageLink platform or TD’s self-directed brokerage account option. FutureAdvisor may be able to link on to these accounts if your plan allows it, and these plans typically do not restrict your investment options.

  2. You can self-manage using our 401(k) management tool. We developed this to provide recommendations in the account based on your preferences:
    https://www.futureadvisor.com/users/current/self_guided_advice