Adviser Managed Workplace Account
What is a Self-Directed Brokerage Account (SDBA)?
According to Aon Hewitt, approximately 40% of retirement plans offer SDBAs.
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For many years, the investment options offered in company-sponsored retirement plans were limited to a pre-selected list of mutual funds and annuity contracts. However, thousands of employers have enhanced their retirement plans to include a brokerage window opportunity, so that plan participants have more choice and greater flexibility with their retirement investments. This option, known as the Self-Directed Brokerage Account (SDBA), exists in 401(k), 403(b), or 457 plans where participants have access to stocks, bonds, mutual funds, and ETFs.
What does an SDBA offer?
How it Works
A self-directed brokerage account is an option that opens up access to a network of mutual funds. Some SDBAs may also allow investments in stocks, bonds, and exchange-traded funds. When retirement savings are placed in an account like this, assets are allocated to investments apart from those available in the core plan.
GREATER FLEXIBILITY
The self-directed brokerage account gives investors access to a broader range of investment choices than the default ones presented in the plan. If you are unimpressed or dissatisfied with the investment choices available in your retirement plan, check to see if a self-directed 401(k) option is available. It could be a viable alternative rather than settling for the core investment lineup.
The accounts may come in the form of a "mutual fund window," providing access to thousands of funds to choose from. Some plans give investors access to a more flexible “brokerage window” account that may allow them to invest in mutual funds, exchange-traded funds, and even individual stocks and bonds. The central concept is to give more choices to a more hands-on investor.
Which plan administrators are more likely to offer an SDBA?
| ▶ BOK Financial | Self-Directed Brokerage Account |
| ▶ Empower | Empower Brokerage Services |
| ▶ Fidelity | BrokerageLink® |
| ▶ Principal | Self-Directed Brokerage Account |
| ▶ Prudential | Self-Directed Brokerage Account |
| ▶ Schwab | Personal Choice Retirement Account (PCRA) |
| ▶ TD Ameritrade | Self-Directed Brokerage Account |
| ▶ TIAA | Brokerage Services |
Why don't you see if I can professionally manage and actually make the investments choices for your plan?
Click Here and ask, "Can you manage my work plan?"
If you do not have a brokerage window with your plan, visit our Plan Confidence® page to get advice for your plan. It costs less than $1 a day to get professional help with your plan.