NRECA Employee Benefits Weekly

New 401(k) Plan Self-directed Brokerage Account Reminders

Posted on Posted in Retirement Benefits

Effective October 15, 2020, NRECA has implemented an enhancement that provides reminders and prevents transfers, loans or hardship withdrawals that are not compliant with the minimum account balance policy when requested by participants in the NRECA-sponsored 401(k) Pension Plan. Participants with self-directed brokerage accounts (SDBAs) must maintain a $500 minimum balance in the 401(k) Plan’s investment line-up to allow for automatic monthly SDBA administration fee deductions.

The Employee Benefits website will now automatically display minimum balance reminders to brokerage account participants when they request:

  • A transfer of 401(k) account assets into their SDBA;
  • A loan from their 401(k) account; or
  • A withdrawal from their 401(k) account.

At the time of the request for a transfer, loan or withdrawal, one of the following actions will occur and the participant will be notified at the time the request is processed:

  1. APPROVAL – If the full requested amount is permissible and the request leaves at least $500 in the 401(k) Plan investment line-up;
  2. APPROVAL FOR AN ADJUSTED AMOUNT – A distribution/loan is allowed, however, the amount requested is adjusted/lowered to allow the $500 required minimum balance required to remain in the 401(k) Plan investment line-up; or
  3. REJECTION – No distribution/loan is permitted if the participant’s 401(k) Plan investment line-up balance is—or would be—$500 or less at the time if the request were to be approved.

Related content across the Employee Benefits website, participant forms and brochures reflect the SDBA minimum balance requirement policy. 

Questions?

  • Participants needing assistance with their self-directed brokerage account should contact the TD Ameritrade participant services team at 866.766.4015, Monday through Friday from 7 am to 6 pm, Central time (CT), excluding market holidays.
  • Participants with questions about how their self-directed brokerage account fits within their overall investment strategy should contact NRECA’s Personal Investment & Retirement Consulting team at 866.673.2299, option 6. PIRC planners are available Monday through Friday from 7:30 am to 4 pm, CT.
  • For questions about closing their SDBA, participants should contact the Member Contact Center at 866.673.2299, option 8. Representatives are available Monday through Friday from 7 am to 7 pm, CT.
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