PLANSPONSOR - April/May 2021 - 10

UPFRONT
What to Look for in an SDBA Plan
AS MORE PARTICIPANTS engage
with their investments and take a more
hands-on approach, sources say, selfdirected
brokerage accounts (SDBAs) are
becoming increasingly popular.
The accounts allow investors who are
enrolled in a defined contribution (DC)
retirement plan to access investments
outside of the core menu lineup, explains
Nathan Voris, senior managing director
of business strategy at Schwab Retirement
Plan Services Inc.
For participants to invest in an SDBA,
their retirement plan would first have to
offer the accounts as an investment option,
says Renée Pastor, founder and wealth
manager of the Pastor Financial Group,
and a specialist in 401(k) management.
Plan sponsors would work with
their consultants to learn more about
the recordkeeper's due diligence of listed
investments and to ultimately add the
platform as an option, Voris notes.
Then, the participant would fill out
an online form to enroll with the recordkeeper.
" Most recordkeepers have one or
more SDBA providers on their platform.
In the same way that a 401(k) provider or
" What you don't want is a window
[where] fees may be above and
beyond what the average 401(k)
participant is paying. "
10 PLANSPONSOR.COM April - May 2021 Art by Katherine Streeter
recordkeeper offers advice on managed
accounts and target-date funds [TDFs], a
brokerage window is one of those tools that
really every recordkeeper has, " Voris says.
Pros and Cons
An obvious pro to self-directed brokerage
accounts is they offer a multitude of
options otherwise unavailable. There are
other pluses, too, as well as minuses, all
of which sponsors should bear in mind.
Because SDBAs add little further cost
to the plan sponsor and can be offered as
an extra benefit and choice to the participant,
more employers are adopting the
investment option, Pastor says. " Some
SDBAs can open up to almost anything:
individual stocks, bonds, ETFs [exchangetraded
funds]. Some of them open up to
larger mutual fund windows, " she says.
Yet, this level of accessibility is
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PLANSPONSOR - April/May 2021

Table of Contents for the Digital Edition of PLANSPONSOR - April/May 2021

Ready Solution?
Tiptop Health Savings Accounts
2021 Defined Benefit Administration Survey: Shedding Light on DB Plans
How TRO Might Benefit Plans
By Popular Demand
What's the ROI?
PLANSPONSOR - April/May 2021 - Cover1
PLANSPONSOR - April/May 2021 - Cover2
PLANSPONSOR - April/May 2021 - 1
PLANSPONSOR - April/May 2021 - 2
PLANSPONSOR - April/May 2021 - 3
PLANSPONSOR - April/May 2021 - 4
PLANSPONSOR - April/May 2021 - 5
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PLANSPONSOR - April/May 2021 - Ready Solution?
PLANSPONSOR - April/May 2021 - 17
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PLANSPONSOR - April/May 2021 - 19
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PLANSPONSOR - April/May 2021 - Tiptop Health Savings Accounts
PLANSPONSOR - April/May 2021 - 23
PLANSPONSOR - April/May 2021 - 24
PLANSPONSOR - April/May 2021 - 25
PLANSPONSOR - April/May 2021 - 26
PLANSPONSOR - April/May 2021 - 27
PLANSPONSOR - April/May 2021 - 2021 Defined Benefit Administration Survey: Shedding Light on DB Plans
PLANSPONSOR - April/May 2021 - 29
PLANSPONSOR - April/May 2021 - 30
PLANSPONSOR - April/May 2021 - 31
PLANSPONSOR - April/May 2021 - How TRO Might Benefit Plans
PLANSPONSOR - April/May 2021 - 33
PLANSPONSOR - April/May 2021 - By Popular Demand
PLANSPONSOR - April/May 2021 - 35
PLANSPONSOR - April/May 2021 - What's the ROI?
PLANSPONSOR - April/May 2021 - 37
PLANSPONSOR - April/May 2021 - 38
PLANSPONSOR - April/May 2021 - 39
PLANSPONSOR - April/May 2021 - 40
PLANSPONSOR - April/May 2021 - Cover3
PLANSPONSOR - April/May 2021 - Cover4
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