Self-directed brokerage windows allow participants to establish a personal brokerage account within their employer’s defined contribution plan. There are usually more investment options in brokerage windows than in the plan menu. This gives participants access to a broader array of stocks, bonds, mutual funds, and exchange traded funds (ETFs).
Recently, there has been increased interest in self-directed brokerage accounts in 401(k) plans. The boost was perhaps spurred on by the ERISA Advisory Council’s meeting on this topic.
As the largest independent recordkeeper of employer-provided retirement plans, Alight Solutions is always looking for ways to keep you updated on the latest shifts and trends in retirement plans. We think you’ll find value in these five facts about self-directed brokerage accounts.