NRECA Employee Benefits Weekly

401(k) Pension Plan: Self-directed Brokerage $0 Commission Online Equity Trades

Posted on Posted in Retirement Benefits

For cooperatives offering the NRECA-sponsored 401(k) Pension Plan’s self-directed brokerage account (SDBA) option, our administrator, TD Ameritrade, Inc.,* announced important changes to the online trading commission schedule for participants.

Effective October 3, 2019, the following changes are in effect:

  • $0 commission for online/web/mobile trades of exchange-listed stock trades;
  • $0 commission for online/web/mobile trades of domestic exchange traded funds (ETF); and
  • $5 commission for exchange-listed stock, option, or domestic ETF trades placed via the interactive voice recognition (IVR) system.

TD Ameritrade will notify current SDBA participants of the change via their website’s secure message center and via email (if a valid email address for the account holder is on file).

What’s not changing
There are no changes to NRECA’s monthly $10 administrative fee deducted from participant’s 401(k) Plan account for every month the account remains open. TD Ameritrade’s mutual fund transaction fee will remain the same (as applicable) and the 2018 reduction of the short-term redemption fee to $0 remains in effect. Commissions or trading fees for fixed income investments as well as broker-assisted rates are unchanged.

For more information
The updated SDBA Commissions and Service Fees  and additional SDBA details are now available on the Employee Benefits website > My Retirement > My 401(k) > Self-directed Brokerage Account.

*TD Ameritrade, Inc., member FINRA/SIPC. TD Ameritrade is a trademark jointly owned by TD Ameritrade IP Company, Inc. and The Toronto-Dominion Bank.

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