Posted by Hugh Bromma on April 03, 2001 at 11:23:24:
Your 401(k) may provide for a self directed feature, permitting you to invest your earmarked account in any permissible investment. Check with your administrator or trustee to determine if that investment feature is part of your plan. If it is, you direct the trustee to make investments you direct with your 401(k) funds, and those investments become part of your account assets.
If your 401(k) does not have such a feature, it may have an in service withdrawal feature, which will permit you to withdraw funds from your 401(k) account, usually after 2 years, and roll those funds to a self directed IRA, which will then permit you to make the investments you choose. As mentioned in another response, if the plan ahas a loan provision, you could use that. You can withdraw 50% of your plan balance up to $50,000. If it is for bulding a primary residence, you have up to 30 years to repay, otherwise, 5 years, in equal periodic payments not less than quarterly. Ask your administrator for details.