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moving 401k balance into self-directed ira
user
your question asks "how" but "if" may be your issue. most companies will not permit an external transfer while still employed, or under a certain age, 55 or so.  if yours is one of the rare companies that permits a transfer, you simply open an ira with the broker of your choice. schwab, fidelity, etrade, or a dozen others. that broker will give you the paperwork you need to fill out, and they initiate the transfer.  i assume you want an ira in which you can invest in stocks or funds of your choosing. a traditional ira. the term "self-directed" has another meaning, often associated with the account that permits real estate purchases inside the account. the brokers i listed do not handle that, those custodians have a different business model and are typically smaller firms with fewer offices, not country-wide.
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