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Brokerage window

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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.



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In Hecker, the courts said Erisa does not require plans to disclose revenue sharing and rejected the argument that the investments were too expensive, noting participants could access more than 2,500 mutual funds through the plan's brokerage window.
One -- for those who cannot have enough choices -- is called a self-directed account or brokerage window.
In addition, plan auditors may experience difficulty in obtaining brokerage window investment information by individual investment categories (common stocks, mutual funds, employer securities, etc.
 
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