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What to Know Before Adding an SDBA to Your Plan

What to Know Before Adding an SDBA to Your Plan Self-directed brokerage accounts offer a multitude of options to the hands-on investor, but there are pros and cons of allowing retirement plan participants to use them. Reported by As more participants engage with their investments and take a more hands-on approach, sources say self-directed brokerage accounts (SDBAs) are becoming increasingly popular. The accounts allow investors who are enrolled in a defined contribution (DC) retirement plan to access mutual funds, stocks, bonds, exchange-traded funds (ETFs) and more. SDBAs allow participants to select investments outside of the core menu lineup, explains Nathan Voris, senior managing director of business strategy at Schwab Retirement Plan Services. “It provides a window for 401(k) participants to access a much broader component of the market versus what has been a traditional core menu for the 401(k),” he says.

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