The Self-Directed Brokerage Account (SDBA) is available to participants in the MERS Defined Contribution Plan, Hybrid Plan, and the 457 Supplemental Retirement Program. You are eligible to open an SDBA once your account balance grows above $5,000, which is the minimum amount required to be maintained in either the LifePath target date funds or the Additional Fund Options. Once your brokerage account is established, you may transfer any amount beyond the $5,000 to SDBA.
This option gives you access to a broad range of investments, including individual stocks, bonds, CDs, commission-free Exchange Traded Funds (ETFs), as well as mutual funds, including No-Load, No-Transaction-Fee (NTFs) Mutual Funds through Charles Schwab. It allows you the convenience of online trading, the power of innovative research tools, and the support of retirement brokerage specialists.
The SDBA is for knowledgeable investors who seek more investment choices, and who understand the risks and costs associated with the investments offered. Unlike the LifePath and Additional Fund Options, the investment choices available through the SDBA, are not approved, selected, monitored, or reviewed by MERS or your employer. When you elect to open an SDBA, you assume the sole responsibility for researching, selecting, monitoring, and managing the investments.
With the SDBA, you get access to a comprehensive library of resources designed to help you make more informed investing decisions. The online tool allows you to apply filtering criteria, such as ratings, fundamentals, valuation, performance, price, and volume to help you generate investment ideas that might fit your individual strategy. In addition, you can easily access the SDBA through mobile apps or by calling to connect with dedicated participant service representatives at Charles Schwab.
How do I open a SDBA?
- Sign in to your online account at empower.com/MERS.
- Select your MERS program.
- Click “Brokerage” under the “Investments” menu in the left navigation bar (not available for MERS Health Care Savings Program or MERS IRA participants).
- On the right, select the enrollment icon that works best for your goals.
- Read and acknowledge the disclaimers and fee information from Charles Schwab.
- Charles Schwab will process the application and send you the SDBA login information to your account at Charles Schwab.
- Once established, you may log in to your online account and begin transferring a portion of your account balance to your SDBA.
