Who qualifies for a self-directed 401k?

Nearly any employer can qualify to set up a self-directed 401k plan on behalf of employees. Typically, individuals will not set up 401k accounts because they require much more administrative support and costs than other retirement plans designed for individuals and small businesses. An employer that wishes to offer benefits but prefers to allow employees to choose how to direct those investments is a good candidate for a self-directed plan. As an employee, you are eligible for the plan only if your employer is offering it or you choose to set one up yourself despite challenges with administration.