Self-Directed Retirement Accounts
Who is the SDA vendor?
Alerus has an agreement to offer SDA’s through various vendors. The plan will choose one broker vendor from the list below:
Charles Schwab Personal Choice Retirement Account (PCRA), a Divison of Charles Schwab & Co.,Inc Fidelity Investments Brokerage Flex, a Division of Fidelity Brokerage Services
How long should my SDA enrollment take to be set up?
Please allow up to 10 business days for the processing your request. Once your account has been established, you will receive notice from SDA company confirming your account is available.
Do I need a minimum account balance to establish a SDA?
Depending on which brokerage vendor your company choose a minimum amount may or may not exist from the brokerage firm. In addition, your employer may impose additional restrictions.
Please contact your employer about the minimum amount in order to establish a brokerage account.
Am I required to maintain a certain balance in the core funds?
Your Employer will determine a minimum amount and/or a percentage of your account balance they will allow into a brokerage account and/or an amount that needs to be maintained within your retirement plan's core funds.
Are there fees associated with a brokerage account?
Yes, there are Brokerage Fees charged by each brokerage firm.
How can I find out what the brokerage fees are?
On your Summary page - Select the side teaser "Enroll in Brokerage". Scroll down and select the link "Click here for additional information" the brokerage firm agreement information will appear along with their contact information.
In addition, the plan may impose a brokerage fee. Please contact your employer.
Here is contact information for each brokerage vendor:
PCRA Account, you may contact the PCRA Call Center at 888-393-7272.
Flex Account, you may contat Fidelity customer service at 800-343-3548.
Can I have my payroll contributions deposited into my SDA?
Depending on which brokerage vendor your company choose you may be able to make contributions directly into your brokerage account from your payroll contributions contributed into the plan. Please contact you employer for more information.
How do I move money from my retirement account into a SDA account?
Log in as a participant at https://www.alerus.com. Once logged on, click on the "Change my Investments" menu item, then select "Transfer Specific Amounts".
Under the "From" column enter the percentages you want to transfer from core funds. Under the "To Column" Indicate a 100% transfer next to the PCRA or FLEX Brokerage fund. Hit continue through the next several pages to complete the transaction.
What are the Minimum and Maximum Transfer Amounts for my SDA Account?
Depending on which brokerage vendor your company choose a minimum transfer amount may or may not exist from the brokerage firm. In addition your employer may impose additional minimum and maximum transfer restrictions.
Will I receive detailed statements?
You will receive two types of statements related to your retirement plan account. You will receive one quarterly statement from Alerus that will include your total SDA balance by source, as of the last day of the quarter.
Please contact the brokerage vendor with additional statement questions you may have. Here is contact information for each brokerage vendor:
PCRA Account, you may contact the PCRA Call Center at 888-393-7272.
Flex Account, you may contat Fidelity customer service at 800-343-3548.
How do I transfer SDA money?
To transfer dollars into your brokerage account from your retirement plan. Under "Change my Investments" select "Transfer Specific Amount". You can then select the amount of cash you want moved into your brokerage account.
To transfer dollars from your brokerage account back into the retirement plan. You will initiate a transaction on the brokerage site to liquidate and move cash back into your retirement account. Once the dollars are available under the the retirement plan you may initiate a transfer.
NOTE: Upon receipt of cash from the brokerage vendor, Alerus will invest the funds in the plan's default fund (typically a stable value fund) within your account prorata across sources. This money will remain invested in the default fund until you take action to transfer the funds.
Can I receive a withdrawal out of my SDA if I am still employed by my current employer?
If the Plan Document provides for an in-service withdrawal, you may initiate a withdrawal request through your Employer. Once approved, the amount will be distributed in cash out of the core funds, not the SDA.
It is your responsibility to have a sufficient balance in the core funds to cover the requested withdrawal amount and maintain the minimum balance in the core funds.
If terminated from my current employer, can I transfer my SDA to an IRA or another qualified plan?
Yes, if allowed in the plan document your SDA assets may be transferred in-kind. To receive a distribution upon termination, you will complete a Distribution Form supplied by your employer. You may select the option on the form to transfer your SDA in-kind to an IRA or successor plan (if allowed). You will also provide instructions on the Distribution Form as to where your entire account balance should be transferred. If your account will not be transferred in-kind, you must liquidate your SDA account and transfer the money back into your plan account to be distributed.
See the section "How do I transfer money from SDA assets to the core funds" for additional information on the transfer process
If you are not 100% vested, it may be necessary to liquidate and transfer a portion of your SDA account back into your plan account prior to Alerus processing your distribution request.
Who do I call if I have questions regarding my Brokerage account?
Here is contact information for each brokerage vendor:
PCRA Account, you may contact the PCRA Call Center at 888-393-7272.
Flex Account, you may contat Fidelity customer service at 800-343-3548.