What is a self-directed brokerage account?

The Self-Directed Brokerage Account (SDBA) from Charles Schwab is a brokerage option available through the Deferred Compensation Plan (DCP) as an additional way to invest your retirement savings. With the SDBA, you have the freedom to invest in most New York Stock Exchange, American Stock Exchange, and NASDAQ listed stocks, ETFs, corporate and government bonds, and registered mutual funds including no transaction fee and no-load funds. The SDBA, known at Charles Schwab as a Personal Choice Retirement Account (PCRA), is typically best suited for experienced investors who acknowledge and understand the risks associated with the wide range of investment choices available through Charles Schwab.

How do I open a SDBA?
  1. Navigate to www.LA457.com and click LOGIN.
  2. Click on the Investments & Research tab near the top of the page and select Self-Directed Brokerage Account.
  3. Choose either a Non-Roth Brokerage account or a Roth Brokerage account to continue.
  4. Upon being transferred to the Charles Schwab PCRA page, review and agree to the Terms and Conditions, and click continue.
  5. You will be prompted to enter in the following information to continue the account opening process:
    • Retirement Plan ID: CITYOFLA
    • Plan Access Code: sdba
    • Your Social Security Number
  6. Continue with account opening by selecting Open new PCRA or Open new Roth PCRA.
    • Review and consent to the electronic account opening application.
    • Complete your account holder information.
    • Review and verify account holder information.
    • Submit the application. This may take a few moments to process.
  7. Once processed, save your application, retain your Brokerage Account Number, and click Continue to register your account and establish the single sign-on connection between your City of LA DCP account and the SDBA account.
  8. Enter the personal information requested, including the Brokerage Account Number that was provided in the previous screen.
  9. Follow the prompts to verify your identity using the mobile phone number you provided.
    • Enter the verification code that was sent via text or voice call.
  10. Create a username and password that meets the minimum security requirements.

Congratulations! Once you complete these steps, your account will be open and you can begin researching investment opportunities for your new SDBA! After a few days you will receive welcome materials from Charles Schwab. You will be able to transfer funds to your SDBA three to four business days after opening your account.

Please note: The minimum transfer amount to your SDBA is $1,000. You must maintain a minimum of $2,500 in your DCP core menu account balance at all times. Failure to maintain the required $2,500 minimum core balance will result in a forced liquidation and transfer of assets from your SDBA to your DCP core menu account. You may transfer a portion of your DCP account to the SDBA all at once or from time to time, subject to certain restrictions.

Contact the Service Center at 844-523-2457 or contact a Local Retirement Counselor for additional assistance.

How long does the process take?
  • Day 1 - Open your SDBA
  • Day 3 - Transfer funds from DCP account to SDBA. (First Transfer: $1,000 minimum, thereafter $250 minimum)
  • Day 5 - Funds available for investment at Schwab.
New! Enable Seamless Access between your SDBA and DCP Account

Whether you have an existing SDBA or just opened a new account, we’ve introduced “single sign-on” (SSO) functionality for SDBA holders that makes it easier than ever to manage your DCP and SDBA accounts. Now you can access your SDBA directly from the DCP website without having to enter in your Charles Schwab web credentials each time.

Disclaimer
The investments available under the SDBA are not selected, reviewed, or monitored by the DCP.  The SDBA is not designed for all investors. It is designed for experienced investors who can make informed decisions and understand the risks associated with the investment decisions made. The DCP is not responsible for losses that result from the participant’s investment selections. The minimum transfer is $1,000 and a minimum of $2,500 must remain in your DCP account. If you wish to invest in both pre-tax and after-tax Roth, you will need to open two SDBAs (one for each contribution type). 

Please consider the investment objectives, risks, fees and expenses carefully before investing. For this and other important information, you may obtain disclosure documents from your registered representative. For prospectuses on the Self-Directed Brokerage account, contact Schwab PCRA at 888-393-7272. Read them carefully before investing. Plan administration services provided by Voya Institutional Plan Services, LLC. Information from registered Retirement Counselors is for educational purposes only and is not legal, tax, or investment advice. Local Retirement Counselors are registered representatives of Voya Financial Advisors, Inc. (member SIPC).