I have a 15k roth already with fidelity. It allows me to by what ever I want . Why would the 401k roth be different?

The difference isn’t “Roth vs Roth” — it’s **IRA vs 401k.** Your **15k Roth IRA** at Fidelity is an **individual brokerage account** in a Roth wrapper. An **IRA is always self‑directed**: you pick from *Fidelity’s entire brokerage universe* (stocks, ETFs, mutual funds), so you can buy **SMH, SCHG, VRT, whatever**. Your **Roth 401k** is **part of your employer’s 401k plan**, even though it’s “Roth.” That means: - The **plan sponsor (your employer) + plan provider (Fidelity’s 401k platform)** decide what investments are available. - You’re usually limited to a **menu of funds** (like FSPSX, FXAIX, FSKAX, target‑date funds, etc.). - You only get access to **individual ETFs/stocks** (SMH, SCHG, VRT) **if** the plan offers a **BrokerageLink / self‑directed brokerage window** *inside* the 401k. So: - **Roth IRA** = *your* account, wide open menu, fully self‑directed. - **Roth 401k** = *employer plan* account, limited menu **unless** there is a brokerage window. That’s why your 15k Roth IRA can buy anything, but your Roth 401k might not be able to buy SMH/SCHG/VRT *unless* BrokerageLink is offered. --- ## How to implement what you want with the 229k You said: > “I will sell current positions and start new FSPSX, FXAIX and FSKAX 204k. What to do with remaining 25k? How to buy SMH, VRT, SCHG.” Given what you have: - **229k** in Fidelity managed (split between traditional 401k/IRA side and Roth 401k side) - **15k Roth IRA** already self‑directed - Plan: **204k** in FSPSX/FXAIX/FSKAX core, **25k** in SMH/SCHG/VRT growth sleeve Here are your realistic paths: ### Scenario A – Your 401k has **BrokerageLink** (best if available) If your 401k offers BrokerageLink (or similar name): 1. Fire the managed program (IRA + 401k) so you control the investments. 2. In the **401k**: - Keep ~**204k** in core funds: FSPSX, FXAIX, FSKAX (in whatever mix you want). - Open **BrokerageLink** inside the 401k. - Move **25k** from the core funds into BrokerageLink. - Inside BrokerageLink, buy **SCHG, SMH, VRT** with that 25k. Result: - All 229k stays inside the 401k/IRA tax shelter. - You have: - Core: FSPSX/FXAIX/FSKAX - Growth sleeve: SCHG/SMH/VRT - No taxable account involved; no tax bill for these trades. ### Scenario B – Your 401k does **not** have BrokerageLink (very common) In that case: - Inside the **401k (traditional + Roth 401k)** you can only buy the plan menu (FSPSX/FXAIX/FSKAX, etc.). - You **cannot** buy SMH/SCHG/VRT in the 401k at all. Then your cleanest setup is: 1. **401k (all 229k)** - Use **FSPSX, FXAIX, FSKAX** for the full amount (no SMH/SCHG/VRT there). 2. Use your **existing 15k Roth IRA + future contributions** as the home for: - Your **AI + growth single names** (ANET, NVDA, ALAB, etc. as we sketched), and - Potentially **some SCHG/SMH/VRT** as you add more Roth IRA money over time. You *could* also: - Roll some Roth 401k money into a **Roth IRA** later (if your plan allows in‑service rollovers or when you leave the employer), and then buy SMH/SCHG/VRT in that Roth IRA. But that’s a separate step. --- ## What to say / do tomorrow When you call Fidelity, ask **very specific questions**: 1. “Please **remove the managed account service** from my retirement accounts. I want them as self‑directed.” 2. “For my **401k and Roth 401k**, I want to invest myself in plan funds like **FSPSX, FXAIX, FSKAX**.” 3. **Critical question:** “Does my 401k offer a **BrokerageLink** or self‑directed brokerage window that lets me buy **ETFs and individual stocks** like SMH, SCHG, and VRT *inside* the 401k?” Then: - If they say **YES**: - Ask: “Can I move about **25k** into that BrokerageLink window and keep the rest in FSPSX/FXAIX/FSKAX?” - That 25k is where you’ll buy **SMH, SCHG, VRT**. - If they say **NO**: - Then the **401k can’t hold SMH/SCHG/VRT**. - You’ll use the 401k solely for **FSPSX/FXAIX/FSKAX** and keep your **growth/AI sleeve** (SCHG, SMH, VRT + the AI names) in your **Roth IRA and any taxable account** instead. --- ### Quick sanity check So the direct answer to your question: > “I have a 15k Roth already with Fidelity. It allows me to buy whatever I want. Why would the 401k Roth be different?” Because: - **Roth IRA = your personal brokerage account**, full menu. - **Roth 401k = employer plan**, menu is controlled by the plan; full brokerage menu only if they bolt on a **BrokerageLink** window. Once you know **whether BrokerageLink exists** in your plan, we can lock in: - Exact **dollar allocations** for: - FSPSX / FXAIX / FSKAX (204k core) - SCHG / SMH / VRT (25k growth) - And which **account** holds each piece (401k vs IRA vs Roth IRA).