The 401k has traditional ira and roth money in same amo

Think of your setup as **one 401k plan with two “tax buckets”**, not two different account types: - **Traditional 401k dollars** (pre‑tax) - **Roth 401k dollars** (after‑tax) They live in the **same 401k system**, but are tracked separately for taxes. The *investment menu* is usually the same for both. Your **15k Roth IRA** is a totally separate account from the 401k and already fully self‑directed, which is why you can buy anything there. --- ## 1. How investments work when you have traditional + Roth in one 401k Inside your Fidelity 401k (traditional + Roth): - The plan usually lets you pick **funds for the whole account** (e.g., 60% FXAIX, 20% FSKAX, 20% FSPSX). - Those choices are applied **proportionally** to: - Your traditional 401k balance - Your Roth 401k balance - Employer match, etc. So when we think: > “204k in FSPSX/FXAIX/FSKAX and 25k in SMH/SCHG/VRT” …that’s **229k total inside the same 401k plan**, regardless of how much of that is traditional vs Roth. The split only matters later for **how withdrawals are taxed**, not for what you *can* invest in. Where it *does* matter is **what the plan allows you to buy**: - Core menu (mutual funds like FSPSX/FXAIX/FSKAX) → available to all sources. - ETFs/stocks (SMH/SCHG/VRT) → only available **if** your 401k offers a **BrokerageLink/self‑directed brokerage window**. The rule is the same whether the dollars are traditional or Roth 401k. --- ## 2. You **do not** need a “self‑directed 401k” for the core funds Once you fire Fidelity managed: - Your **401k** automatically becomes a **self‑directed account within the plan menu**. - You can log in and buy: - **FSPSX** - **FXAIX** - **FSKAX** directly for the **full 229k**, split however you want. No new account type is needed for that. --- ## 3. Where the 25k SMH/SCHG/VRT sleeve fits This is the part that depends on your plan features: ### Case A – Your 401k *does* have BrokerageLink (or similar) Then you can: 1. **Turn off management** on the 401k. 2. Inside the 401k: - Invest ~**204k** in FSPSX/FXAIX/FSKAX. - Open **BrokerageLink** and move **25k** into it. 3. Inside that **BrokerageLink sub‑account (still part of the 401k)**: - Buy **SCHG**, **SMH**, **VRT** with that 25k. All of this stays inside the 401k **tax‑shelter**. It doesn’t matter whether the dollars came from traditional or Roth source; BrokerageLink will usually show one combined market value, while recordkeeping tracks the tax source behind the scenes. ### Case B – Your 401k *does not* have BrokerageLink Then inside the **401k** you are limited to: - FSPSX / FXAIX / FSKAX / target‑date funds / etc. - You **cannot** hold SMH/SCHG/VRT in the 401k at all. In that scenario, your options are: - Use the **401k 100% for core** (FSPSX/FXAIX/FSKAX). - Use your **Roth IRA (15k)** and any **taxable account** (or later Roth rollovers) as the home for: - SMH / SCHG / VRT - Plus your AI names (ANET, NVDA, ALAB, etc.) --- ## 4. Where I’d put things given what you’ve told me Pending whether BrokerageLink exists: ### 401k (traditional + Roth sources combined → 229k) - Turn off managed. - Rebuild core broadly like: - **FSKAX** 40% - **FXAIX** 35% - **FSPSX** 25% If BrokerageLink **exists**, pull **25k** out of that mix into BrokerageLink and buy: - **SCHG** ~40% of 25k - **SMH** ~35% of 25k - **VRT** ~25% of 25k If BrokerageLink **doesn’t** exist, hold **only core** inside the 401k and put SMH/SCHG/VRT in Roth IRA/taxable instead. ### Roth IRA (15k, already self‑directed) Keep using this as your **AI + infra + materials + defense** high‑conviction sleeve with: - ANET, NVDA, MU, ALAB - SPMO, DLR, SETM, FCX, IDEF - (PLTR small if you want) This Roth IRA is also where you can **definitely** buy SCHG/SMH/VRT, regardless of what the 401k allows. --- ## 5. The key question to answer now The fact that your 401k has both traditional and Roth dollars **in the same system** is normal and not a problem. The real deciding factor is: > **When you log into your 401k at Fidelity (NetBenefits), do you see anything called “BrokerageLink” or “self‑directed brokerage account” in the investment options?** - If **yes**, we’ll put the 25k SMH/SCHG/VRT sleeve **inside the 401k** via that. - If **no**, we’ll keep the 401k as a pure **FSPSX/FXAIX/FSKAX core engine** and run your growth sleeve in Roth IRA (and, if needed, taxable). When you get a chance, can you check your online 401k dashboard for “BrokerageLink” and tell me what you see? That one detail will lock in exactly where we place the 25k growth sleeve.