Brokerage window

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 ?
An added benefit of SDBAs is that plan participants can access their brokerage window while still receiving the tax benefits of investing within an employer-sponsored plan, said Augelli.
For example, governments can place a limit on the amount invested through a brokerage window as a set dollar amount or as a percent of the account.
While the provider of the brokerage window is supposed to disclose indirect compensation through several types of investments that plan participants can make, the provider will not know up front which of those investments a participant will choose.
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.
In addition, plan auditors may experience difficulty in obtaining brokerage window investment information by individual investment categories (common stocks, mutual funds, employer securities, etc.
Nearly one-half of respondents now offer a brokerage window as an option.
Another important aspect is the tool's ability to show employees' investment returns across a variety of 401(k) retirement strategies, including target date funds, managed accounts, do-it-yourself fund menus and brokerage window options.
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.
7 /PRNewswire/ -- TIAA-CREF, the financial services organization and leading provider of retirement products and services in the academic, medical and cultural fields, announced today enhancements to its no- fee Investment Solution IRAs that give participants even more choices for building a diversified retirement portfolio, including Lifecycle funds and a self-directed brokerage window, TIAA-CREF Brokerage Services.
By creating a single sign-on link with our Retirement Passport product to the NTSI brokerage window, plan participants will receive a seamless transition from their plan information to their Select Retirement Account information with one mouse click," said Serge Boccassini, Director of New Product Development at Northern Trust Retirement Consulting.
Fiduciary responsibilities will include decisions around auto-enrollment, qualified default investment alternatives (QDIAs), brokerage window options and employee education, to name a few.
In his role at Reliance, Randall will provide management oversight to various technical services offered by Reliance, including specialized accounting and reporting services unique to retirement plans such as mutual fund revenue management, certified trust statement support, and brokerage window services.