Brokerage window

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Brokerage Window

The ability for an account holder to have control over at least some of the investments made on his/her IRA or 401(k). That is, either the account holder or a designated representative has the ability to make investments with the contributions made to the account. This increases the potential return on a retirement account, but also increases the risk associated with it. See also: Self-directed IRA.

Brokerage window.

A 401(k) account that permits its plan participants to buy and sell investments through a designated brokerage account is said to offer a brokerage window.

Any securities trades you authorize for your account are made through this brokerage account. Transaction fees are subtracted as those orders are executed.

References in periodicals archive ?
Under the DB-ization model, employers may find it appropriate to place limits on brokerage windows to protect employees' account balances.
That's whether a broker-dealer would be able to properly identify the payer of indirect compensation in connection with brokerage windows.
Members of the AICPA's DOL Liaison Task Force will continue to work with the DOL as it conducts a review of this alternative reporting method for plans with brokerage windows in an effort to determine whether and under what circumstances such method of reporting may need to be modified to ensure adequate information is provided to plan sponsors, participants and beneficiaries, and the DOL, PBGC and IRS in the future.
In addition, plan auditors may experience difficulty in obtaining brokerage window investment information by individual investment categories (common stocks, mutual funds, employer securities, etc.
How do you know if brokerage windows are a good choice for you?
Although fewer than 10% of companies now offer the brokerage window option, that number is expected to grow quickly, according to Cerulli Associates, a Boston-based financial research company.
They then set up a brokerage window account with a participating broker affiliated with their company's plan, and can begin buying and selling stocks just as they would with any other brokerage account.
Special disclosure rules for certain types of investments like brokerage windows, target-date funds, annuities and company stock
Self-directed brokerage windows in DC plans are expanding, but