Investment-Only Retirement Plan
A retirement plan with flexible investment choices
- For business owners with an established retirement plan trying to expand the range of investment options
- A trading platform for plans with third-party administrators
- Account setup options, including a pooled or separate participant account
Why a Investment-Only Retirement Plan?
Designed for business owners and plan sponsors with an established qualified retirement plan, using a third-party plan administrator
Open one pooled account where the plan administrator manages the investment activity for the entire plan, OR establish separate accounts and authorize each participant or the plan administrator with management of the investment activity
No annual fees and no account minimums
Transaction fees, fund expenses, brokerage commissions and service fees may apply
Trade more, pay less
With E*TRADE from Morgan Stanley, you pay $0 commissions for online US-listed stock, ETF, mutual fund, and options trades. Here’s a quick overview of our clear, competitive per-trade pricing.1
What are the eligibility requirements for an Investment-Only Retirement Plan?
- Designed for business owners and plan sponsors with an established qualified retirement plan, using a third-party plan administrator, seeking to utilize E*TRADE for a robust online trading platform.
A plan sponsor has two options:
- Open one pooled account where the plan trustee(s) or administrator directs the investment activity for the entire plan. Enrolled plan participants have no control over this account. Funds are pooled in the same account and all investments are owned at the plan level.
- Open separate accounts and authorize each enrolled plan participant or the plan administrator to direct the investment activity. The account will be established for the benefit of ("FBO") one plan participant and may not pool plan assets from other participants in the same account.
- This account may be opened at any time. The deadline to fund the account is plan specific.
- Plan participants must be 18 years of age or older and U.S. citizens or residents with a valid U.S. address
Can a retirement account be opened for a business and the investment activity directed for every participant?
Yes. One pooled account may be opened where the plan trustee or administrator directs the investment activity for the entire plan. Enrolled plan participants would have no control over their own individual accounts.
Is margin and options trading allowed on a investment-only plan?
Margin trading is not allowed, however, options level one (writing covered calls) may be requested if allowed by the Plan document.
If the account is transferred to E*TRADE, how will the trustee(s) be notified of investment activity within the plan?
The plan's trustee(s) will automatically receive trade confirmations and account statements showing the plan’s activity. The plan trustee(s) can also request that E*TRADE provide the plan participant(s) duplicate copies of trade confirmations and account statements.
If an investment-only plan is opened, will E*TRADE do the record keeping and tax reporting?
No, E*TRADE will not provide recordkeeping or tax reporting. This must be done independently by the trustee(s) or a third-party plan administrator.
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