Self-directed Brokerage Account Source Direction Enhancement

Beginning September 22, 2021, 401(k) Pension Plan participants with a self-directed brokerage account (SDBA) can direct dollar amounts by money type/source being transferred from their SDBA into the investment option(s) of their choice within their 401(k) account using the NRECA Employee Benefits website.

Previously, participants were limited to selecting the amount to transfer and allocating the amount to the available investment options when transferring money from their SDBA to their 401(k) account. The transfer amount was drawn proportionally from each contribution source/type. Going forward, participants can select the available contribution types/sources depending upon your co-op’s 401(k) Plan contribution options (e.g., employee pre-tax or post-tax / Roth contributions, employer matching contributions) and the extent to which they have utilized them.

When making transfers from an SDBA into their 401(k) account, participants are limited to making a single transfer for each available money source or from “all contribution sources” on any given trading day. On the date of the transfer, should the amount available for the contribution source selected be less than the amount requested, the lesser amount will be the total transferred to the participant’s 401(k) account.

Participants have access to information about the SDBA option on the Employee Benefits website. Additionally, benefits administrators may learn more and access educational resources for their co-op’s employees on the SDBA page in the BA Guide.