Fiduciary concerns and other pitfalls that arise when an unrestricted brokerage account is offered through a qualified retirement plan.

Individual directed brokerage accounts (IDAs) are increasingly popular with both plan participants and plan sponsors. However, offering IDA’s introduces numerous fiduciary issues, operational concerns and potential tax problems for plan sponsors. Fortunately, there are several practical approaches that a sponsor can adopt to more effectively manage liability, operational and cost issues. In addition, the article illustrates a transition plan for moving from a less effective to a more effective brokerage account structure.
Download Individually Directed Accounts in Defined Contribution Plans.

This article originally appeared in the August, 1997 issue of Employee Benefit Plan Review.