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