KeyTradeOnline, an online brokerage, and InvestLink Technologies, a producer of record-keeping software, formed a partnership to allow record keepers to offer self-directed brokerage accounts as a seamless fund choice for 401(k) participants.
Record keepers using the software can offer the account as an investment option along with mutual funds at no extra cost, said George Tashie, executive vice president at KeyTrade. Plan sponsors must select the brokerage account as a fund choice, he said.
Although there is no extra cost for adding the brokerage account, there are transaction costs for participants who conduct trades. Also, KeyTrade offers access to a broker via a toll-free telephone number and a customized screen with detailed financial research, asset allocation and retirement planning software.