If anybody allows plans to invest in self-directed accounts (Schwab, etc.) would you mind sharing the maximum % the participant is allowed to move from the normal fund lineup int an SDA? Thanks.
If anybody allows plans to invest in self-directed accounts (Schwab, etc.) would you mind sharing the maximum % the participant is allowed to move from the normal fund lineup int an SDA? Thanks.
Our standard practice at Ameritas is 50% of their total balance can be in the SDA account. We do have some plans where we have allowed a higher amount as an exception, on a case by case basis.
I supported SDA for many years at a large recordkeeper. Our recommended best practice was 50% of account balances and include all sources. We did however allow plan sponsors to select which sources would be allowed for SDA. We didn’t require all sources. We served many large market clients that wanted higher limits including all the way to 100% which we vetted for approval on a case by case basis. Avoid 100% if at all possible as normal downstream activities become an issue like taking a loan or processing fees as examples.