Retirement Investment Solutions

Self-Directed Brokerage

Self-directed brokerage accounts in defined contribution plans

A self-directed brokerage account allows participants to invest all or a portion of their defined contribution plan account balance into investment options available through the brokerage service. The investment options that may be available to participants through self-directed brokerage accounts include stocks, bonds and mutual funds.

Plan sponsor advantages include:

  • investment flexibility for the small, but vocal group of savvy investors
  • customization, either by imposing limits on how much participants may allocate, or by the types of investments available

Participant advantages include:

  • an open architecture investment structure
  • flexibility and control with the convenience of online trading and investment research tools
  • access to retirement brokerage specialists familiar with retirement plans, brokerage services and the provisions of a plan sponsor’s specific plan
  • a simple and easy-to-use service

Other factors to consider:

  • plan sponsors should consult their ERISA attorneys and investment consultants before implementing a self-directed brokerage account
  • if added to a plan, the service may raise benefits, rights and features testing issues if not offered to all plan participants
  • not all investment types are available in a brokerage account; including but not limited to precious metals, collectibles, futures, commodities, currencies, purchases on margin, short sales and penny stocks
  • plan sponsors should also consider participants’ educational needs

To learn more about Total Retirement SolutionsSM, email or call J.P. Morgan at 800-988-9084.

For questions about a personal retirement plan account, email or call J.P. Morgan at 800-345-2345. If your retirement plan is not with J.P. Morgan, contact your employer for that provider's phone number and website.

Recordkeeping services for the retirement plan provided by J.P. Morgan Retirement Plan Services LLC (JPMRPS); retirement brokerage services offered by J.P. Morgan Securities LLC (JPMS), member FINRA/NYSE/SIPC. JPMRPS and JPMS are affiliates of JPMorgan Chase & Co. 




IRS CIRCULAR 230 DISCLOSURE: JPMorgan Chase & Co. and its affiliates do not provide tax advice. Accordingly, any discussion of U.S. tax matters contained herein (including any attachments) is not intended or written to be used, and cannot be used, in connection with the promotion, marketing or recommendation by anyone unaffiliated with JPMorgan Chase & Co. of any of the matters addressed herein or for the purpose of avoiding U.S tax-related penalties.

© 2012 J.P. Morgan Retirement Plan Services LLC. All rights reserved.


Copyright © 2014 JPMorgan Chase & Co. All rights reserved.