This article is about Justworks PEO. What product am I using?
As a part of our 401(k) offering with Empower, we offer access to a self-directed brokerage account.
What is a self-directed brokerage account (SDBA)?
A self-directed brokerage account is an option through your 401(k) that allows you to invest in mutual funds, stocks, bonds, and ETFs that are outside of the investment options in the plan’s core lineup. Through the brokerage account, you are able to invest in these securities while maintaining the tax advantages and benefits of the 401(k) account. This SDBA is a separate account from your core 401(k) account, which must maintain an account minimum balance.
How do I sign up?
To sign up for the brokerage account you must first be enrolled in the Justworks Retirement Savings Plan through Empower and ensure your company has opted to offer the brokerage. Then, you can enroll on the Empower website; more details can be found here.
Investment selection
Justworks does not select or monitor the investments available in the brokerage account. If you have any questions regarding investments or would like guidance on how to structure your portfolio, please contact our fiduciary investment advisor, BKS Retirement Services. There are no additional fees for their services. To speak with an advisor, call (800) 371-0232.
See here for more details on BKS Retirement Services.
Frequently Asked Questions
What if I want to take out a loan or other distribution?
Requested loans or distributions must come from your core 401(k) account and any loan or distribution request is processed from the core account to the extent possible. If participants do not have sufficient funds in their core account to cover the requested loan or distribution amount, this may result in approval and processing of a smaller amount than requested. To request a loan or distribution, contact Empower’s Customer Care team at 855-JWK-401k.
Are there additional fees for the brokerage account?
There is a $50 annual fee, deducted from the core account balance in increments of $12.50 per quarter for each quarter in which you have an open SDBA with a balance.
Separately, there may be transaction fees depending on the investments that you have selected. These transaction fees are one-time fees to purchase or sell individual investments and vary depending on the type of investment and management company. The specifics of the fees will be disclosed at the time of the transaction and deducted directly from your brokerage account balance.
Is there a deadline to sign up?
If your company has opted into offering the brokerage, the brokerage account can be taken advantage of at any time. For more information about opening a brokerage account or any other questions regarding your Empower account please contact Empower’s Customer Care team at 855-JWK-401k.
Where can I find more information?
Empower is a great resource for understanding the Empower Brokerage account, how to set one up, etc. You can reach out to Empower’s Customer Care team at 855-JWK-401k or check out these Empower resources:
Disclaimer
This material has been prepared for informational purposes only, and is not intended to provide, and should not be relied on for, legal or tax advice. If you have any legal or tax questions regarding this content or related issues, then you should consult with your professional legal or tax advisor.