The Self-Directed Brokerage Account (SDBA) allows participants to invest their funds in a wide variety of publicly traded debt and equity securities, and shares of numerous mutual funds. The SDBA is established through a brokerage account with TD Ameritrade.
The SDBA option is automatically available to all participants.
In the chart below, you will find the necessary steps to follow when an eligible participant wishes to open an SDBA. You must complete these steps in sequence.
|Steps for Opening a Self-Directed Brokerage Account (SDBA)||Plan Participant’s Role||Plan Administrator’s Role||TD Ameritrade’s Role|
|1. Decide to open an account; complete and send an application to TD Ameritrade||√|
|2. Process the form||√|
|3. Send welcome kit to participant||√|
Step 1 – Participant Decides to Open an SDBA
Opening an SDBA is easy. Participants complete the Self-Directed Brokerage Account Application and submit it directly to TD Ameritrade. TD Ameritrade will send the participant a welcome kit with his or her newly established account number and log on credentials for the TD Ameritrade website. The participant can then arrange to transfer assets from the Program’s core investment options to the SDBA for trading.
The SDBA Application is available in the Resources section of the Program’s website at www.abaretirement.com (see Resources).
Please note that Roth 401(k) contributions and earnings cannot be commingled with other plan assets, so a separate SDBA will need to be established solely for Roth 401(k) assets (see sidebar). Participants may complete transfers by, calling the Customer Service Center at 800.348.2272, or accessing the website at www.abaretirement.com. See “Transferring Funds” for more information.
Steps 2 and 3 – TD Ameritrade’s Role
TD Ameritrade will process the SDBA application upon receipt and will send a welcome kit to the participant.
SDBA participants receive a monthly statement from TD Ameritrade. Note that the total SDBA assets as of the end of the calendar quarter are also included in the participant’s quarterly statement from the Program. Account information is also updated daily so that balances online and through the Customer Service Center are inclusive of SDBA assets.