Managed Account Platform Section

How to open business retirement accounts on the managed account platform

How to open business retirement accounts on the managed account platform

Charles Schwab & Co., Inc. ("Schwab") offers several business retirement solutions on the managed account platform, including the individual 401(k) plan, SEP-IRA, SIMPLE IRA, the qualified retirement plan (QRP), and the Schwab Personal Choice Retirement Account® (PCRA). These plans help clients maximize their retirement savings and tax advantages while participating in the Managed Account Select® ( Select Tooltip ), Managed Account Access® ( Access Tooltip ), or Managed Account Marketplace® ( Marketplace Tooltip ) platforms.

Note:

  • As of September 23, 2011, business owners can no longer establish new Schwab QRPs. Schwab continues to service and maintain existing plans as well as enroll new participants into them.
  • PCRA accounts participating in managed accounts can only be opened in Marketplace.
  • Charles Schwab Investment Management, Inc. TPI strategies will not accept business retirement accounts on the Managed Account Access® (Access) platform.

If your client already has an existing managed account on file and would like to open additional managed accounts with identical registration, refer to How to add an additional managed account, or change or terminate a money manager.

You can open business retirement plans for clients who are new to Select, Access, or Marketplace using DocuSign®, or paper forms.

To open a business retirement plan on the managed account platform, you will need:

Required

All accounts
  • Your firm name, contact information, and managed account master.
  • The name of the money manager firm and investment strategy.
  • Account holder's name, home address, identification number Tooltip , birth date, telephone numbers, citizenship status, employment status, and occupation; and the employer's name, business address Tooltip , and business phone number.
  • Business and employer information is not required if the client is retired or non-employed.
  • Funding Tooltip for the account (meeting required account minimums) through an internal transfer (journal) entry, a transfer of assets (using eligible securities), or a check deposit.
  • Adobe® Reader® or Adobe Acrobat® 7.0 or higher (download the latest version on the Adobe website).
In addition to the required information above, the following platform-specific information is required:
Select or Access accounts
Marketplace accounts
  • The money manager's master account number (obtained from the money manager).

 

Conditional

All accounts
  • For all accounts (excluding PCRAs): the beneficiary's name, relationship, Social Security number or taxpayer identification number, birth date, and consent of spouse, if applicable.
  • If opening a funding account: your firm's non-managed account master.
  • If funding the account through an internal transfer (journal) entry: the client’s Schwab account number.
  • If any authorized individual or control person is affiliated with or employed by a stock exchange; a member firm of an exchange or FINRA; or a municipal securities broker-dealer and Rule 3210 applies; a FINRA Rule 3210 Consent Letter.
  • If the managed account uses an investment strategy that trades options: options authorization Tooltip using a completed Options Trading and Margin Application. Investment strategies using options will have an options note listed within Additional Information, located under the Operational section of the individual Strategy Details page.
  • If adding the account to an existing quarterly trade confirmation report subscription: the Schwab account number(s) in the existing subscription.
  • If using DocuSign to submit forms:
    • For existing Schwab clients, a complete Schwab Advisor Center® profile with the account holder's current email address and mobile phone number.
    • For new-to-Schwab clients, the email address and mobile phone number.
    • All clients must use either Alliance Authentication (only available when starting the envelope within Schwab Advisor Center), or, both text message (SMS) authentication and Knowledge Based Authentication (KBA) for DocuSign (available in both Schwab Advisor Center and the DocuSign Console).
In addition to the conditional information above, the following platform-specific information is required if certain conditions are met:
Select or Access accounts
  • If electing to group Schwab accounts for fee calculation purposes: the affected Schwab account numbers.
  • If securities are used to fund the account and are missing cost basis: a completed Cost Basis Edit Form.
Marketplace accounts
  • Turnkey asset management provider (TAMP) and managed account master.
  • Asset-based pricing Tooltip schedule name (if applicable).
  • If the existing account has the margin feature and/or check writing, an approval letter from the money manager acknowledging the features can remain on the account.
  • If the investment strategy does not trade options, but the money manager is approved to trade options: an approval letter from the money manager acknowledging that options are associated with the account.

To open a 401(k) plan on the managed account platform, a combination of both managed account and non-managed account paperwork is required. The information outlined below details the managed account forms required; to view the non-managed account form requirements, see How to open an individual 401(k) plan.

  1. Go to the Forms library on Schwab Advisor Center and select the forms below applicable to your managed account.
  2. Click Select and then open the form using your preferred submission method.

    Select or Access managed accounts
    • Managed Account Select/Access Acct Conversion & Manager Change Form
    Marketplace managed accounts
    • Managed Account Marketplace Money Manager Limited Power of Attorney (LPOA)
    • Managed Account Asset Based Pricing Addendum to Account Applications and Agreements (if applicable)
    • Options Trading and Margin Application (if the chosen investment strategy uses options)
    Marketplace managed accounts using TAMP providers
    • Managed Account Marketplace TAMP Money Manager Limited Power of Attorney (LPOA)
    • Options Trading and Margin Application (if the chosen investment strategy uses options)
  3. Complete the forms and obtain client signatures:
    • For forms eligible for DocuSign, see How to use DocuSign.
    • For forms not eligible for DocuSign, print the forms and obtain signatures from each account holder.
  4. Send the signed forms to Schwab Managed Account Operations via a Schwab Advisor Center service request, or using the following fax or mailing address:
East CoastWest Coast
877-828-1176877-815-3479
Regular mail:
Charles Schwab & Co., Inc.
Attn: Managed Account Operations
P.O. Box 2380
Omaha, NE 68103
Regular mail:
Charles Schwab & Co., Inc.
Attn: Managed Account Operations
P.O. Box 982603
El Paso, TX 79998-2603
Overnight mail:
Charles Schwab & Co., Inc.
Attn: Managed Account Operations 
200 S 108th Ave
Omaha, NE 68154
Overnight mail:
Charles Schwab & Co., Inc.
Attn: Managed Account Operations
1945 Northwestern Drive
El Paso, TX 79912-1108

To open a SEP-IRA participant account on the managed account platform, a combination of both managed account and non-managed account paperwork is required. The information outlined below details the managed account forms required; to view the non-managed account form requirements, please see How to open a SEP-IRA.

  1. Go to the Forms library on Schwab Advisor Center and select the forms below that apply to your managed account.
  2. Click Select and then open the form using your preferred submission method.

    Select or Access managed accounts
    • Managed Account Select/Access IRA Application
    Marketplace managed accounts
    • Managed Account Marketplace IRA Application
    • Managed Account Asset Based Pricing Addendum to Account Applications and Agreements (if applicable)
    • Options Trading and Margin Application (if the chosen investment strategy uses options)
    Marketplace managed accounts using TAMP providers
    • Managed Account Marketplace TAMP IRA Application
    • Options Trading and Margin Application (if the chosen investment strategy uses options)
  3. If any forms are not required for opening the client's account, such as the IRA Account Application, deselect or close those forms.
  4. Complete the forms and obtain signatures:
    • For forms eligible for DocuSign, see How to use DocuSign.
    • For forms not eligible for DocuSign, print the forms and obtain signatures from the account holder and participant. Include photocopies of the employer's adoption agreement or IRS Form 5305 and the employer's agreement with Schwab.
  5. Send the signed forms to Managed Account Operations via a Schwab Advisor Center service request, or using the following fax or mailing address:
East CoastWest Coast
877-828-1176877-815-3479
Regular mail:
Charles Schwab & Co., Inc.
Attn: Managed Account Operations
P.O. Box 2380
Omaha, NE 68103
Regular mail:
Charles Schwab & Co., Inc.
Attn: Managed Account Operations
P.O. Box 982603
El Paso, TX 79998-2603
Overnight mail:
Charles Schwab & Co., Inc.
Attn: Managed Account Operations 
200 S 108th Ave
Omaha, NE 68154
Overnight mail:
Charles Schwab & Co., Inc.
Attn: Managed Account Operations
1945 Northwestern Drive
El Paso, TX 79912-1108

To open a SIMPLE-IRA account on the managed account platform, a combination of both managed account and non-managed account paperwork is required. The information outlined below details the managed account forms required; to view the non-managed account form requirements, please see How to open a SIMPLE IRA.

  1. Go to the Forms library on Schwab Advisor Center and select the forms below applicable to your managed account.
  2. Click Select and then open the form using your preferred submission method.

    Select or Access managed accounts
    • Managed Account Select/Access IRA Application
      Options Trading and Margin Application (if the chosen investment strategy uses options)
    Marketplace managed accounts
    • Managed Account Marketplace IRA Application
    • Managed Account Asset Based Pricing Addendum to Account Applications and Agreements (if applicable)
    • Options Trading and Margin Application (if the chosen investment strategy uses options)
    Marketplace managed accounts using TAMP providers
    • Managed Account Marketplace TAMP IRA Application
    • Options Trading and Margin Application (if the chosen investment strategy uses options)
  3. Complete the forms and obtain signatures:
    • For forms eligible for DocuSign, see How to use DocuSign.
    • For forms not eligible for DocuSign, print and obtain signatures from each employer and participant.
  4. Send the signed forms to Managed Account Operations via a Schwab Advisor Center service request, or using the following fax or mailing address:
East CoastWest Coast
877-828-1176877-815-3479
Regular mail:
Charles Schwab & Co., Inc.
Attn: Managed Account Operations
P.O. Box 2380
Omaha, NE 68103
Regular mail:
Charles Schwab & Co., Inc.
Attn: Managed Account Operations
P.O. Box 982603
El Paso, TX 79998-2603
Overnight mail:
Charles Schwab & Co., Inc.
Attn: Managed Account Operations 
200 S 108th Ave
Omaha, NE 68154
Overnight mail:
Charles Schwab & Co., Inc.
Attn: Managed Account Operations
1945 Northwestern Drive
El Paso, TX 79912-1108

To open a QRP participant account* on the managed account platform, a combination of both managed account and non-managed account paperwork is required. The information outlined below details the managed account forms required; to view the non-managed account form requirements, please see How to open a qualified retirement plan (QRP).

  1. Go to the Forms library on Schwab Advisor Center and select the forms below that apply to your managed account.
  2. Click Select and then open the form using your preferred submission method.

    Select or Access managed accounts
    • Managed Account Select/Access Acct Conversion & Manager Change Form
    • Options Trading and Margin Application (if the chosen investment strategy uses options)
    Marketplace managed accounts
    • Managed Account Marketplace Money Manager Limited Power of Attorney (LPOA)
    • Managed Account Asset Based Pricing Addendum to Account Applications and Agreements (if applicable)
    • Options Trading and Margin Application (if the chosen investment strategy uses options)
    Marketplace managed accounts using TAMP providers
    • Managed Account Marketplace TAMP Money Manager Limited Power of Attorney (LPOA)
    • Options Trading and Margin Application (if the chosen investment strategy uses options)
  3. Complete the forms and obtain signatures:
    • For forms eligible for DocuSign, see How to use DocuSign.
    • For forms not eligible for DocuSign, print the forms and obtain signatures from each employer and participant.
  4. Send the signed forms to Managed Account Operations via a Schwab Advisor Center service request, or using the following fax or mailing address:
East CoastWest Coast
877-828-1176877-815-3479
Regular mail:
Charles Schwab & Co., Inc.
Attn: Managed Account Operations
P.O. Box 2380
Omaha, NE 68103
Regular mail:
Charles Schwab & Co., Inc.
Attn: Managed Account Operations
P.O. Box 982603
El Paso, TX 79998-2603
Overnight mail:
Charles Schwab & Co., Inc.
Attn: Managed Account Operations 
200 S 108th Ave
Omaha, NE 68154
Overnight mail:
Charles Schwab & Co., Inc.
Attn: Managed Account Operations
1945 Northwestern Drive
El Paso, TX 79912-1108

*As of September 23, 2011, business owners can no longer establish new Schwab QRPs. However, Schwab continues to service and maintain existing plans as well as enroll new participants into them.

This process may be used to add a Marketplace Tooltip money manager to a PCRA if the plan administrator has confirmed the plan allows for managed accounts as an investment option.
PCRA accounts are not eligible in the Select or Access programs.

  1. Prior to adding a PCRA to the managed account platform, your client must establish a PCRA on the non-managed account platform by contacting a Schwab Retirement Consultant at 877-702-6498.
  2. Once the PCRA is established, go to the Forms library on Schwab Advisor Center and select the forms below that apply to your managed account.
  3. Click Select and then open the forms using your preferred submission method.

    For Marketplace managed accounts
    • Managed Account Marketplace Money Manager Limited Power of Attorney (LPOA)
    • Managed Account Asset Based Pricing Addendum to Account Applications and Agreements (if applicable)
    Marketplace managed accounts using TAMP providers
    • Managed Account Marketplace TAMP Money Manager Limited Power of Attorney (LPOA)
      
  4. Complete the forms and obtain signatures:
    • For forms eligible for DocuSign, see How to use DocuSign.
    • For forms not eligible for DocuSign, print the forms and obtain signatures from each account holder, trustee, authorized individual, or custodian.
  5. Send the signed forms to Managed Account Operations via a Schwab Advisor Center service request, or using the following fax or mailing address:
East CoastWest Coast
877-828-1176877-815-3479
Regular mail:
Charles Schwab & Co., Inc.
Attn: Managed Account Operations
P.O. Box 2380
Omaha, NE 68103
Regular mail:
Charles Schwab & Co., Inc.
Attn: Managed Account Operations
P.O. Box 982603
El Paso, TX 79998-2603
Overnight mail:
Charles Schwab & Co., Inc.
Attn: Managed Account Operations 
200 S 108th Ave
Omaha, NE 68154
Overnight mail:
Charles Schwab & Co., Inc.
Attn: Managed Account Operations
1945 Northwestern Drive
El Paso, TX 79912-1108

Once you have submitted your request:

  • Schwab processes all forms in the same time frame, regardless of the account opening method and will notify you with an alert when the account is opened, usually within three business days after Schwab receives the forms. Schwab may contact you for additional documentation or information after completing an initial review. Forms with missing information, signatures, or dates can result in processing delays.
  • Your firm receives an alert when the account is opened and restricted. The restricted account can be funded; however, Schwab's recommendation is to wait until after the initial account has completed the customer verification process Tooltip so that funds are available to the client.
  • Select and Access accounts must be funded to meet the money manager's account minimum; if this has not been met, then the money manager will not be added to the Schwab account.
  • If you have been granted Add, Change, or Terminate a Manager Authorization by the account holder, and you would like to delay the designation of a money manager, you have 180 days from the date the form is signed to provide Schwab with the designated money manager's information. If you provide Schwab with the necessary information within that time period, Schwab will open the account and provide the designated money manager(s) authorizations for the account, as outlined in the account agreement.
  • The account holder should consult with their tax advisor if they have any questions about taxability or filing.
  • If the forms were submitted using DocuSign, see the What's next? section of How to use DocuSign.

If you have questions about opening a business retirement account on the managed account platform, contact Managed Account Operations at 877-595-6345 or via a Schwab Advisor Center service request.

To select a form, go to the Forms library on Schwab Advisor Center.

Form: Cost Basis Edit Form
Form: Limited Power of Attorney (Investment Advisor LPOA)
Form: Managed Account Asset Based Pricing Addendum to Account Applications and Agreements
Form: Managed Account Marketplace IRA Application
Form: Managed Account Marketplace Money Manager Limited Power of Attorney (LPOA)
Form: Managed Account Marketplace TAMP IRA Application
Form: Managed Account Marketplace TAMP Money Manager Limited Power of Attorney (LPOA)
Form: Managed Account Select/Access Acct Conversion & Manager Change Form
Form: Managed Account Select/Access IRA Application
Form: Options Trading and Margin Application
Form: SEP-IRA Adoption Agreement
Form: SEP-IRA Employer's Agreement with Schwab

Can any type of account be opened as a managed account?
No. Managed accounts at Schwab cannot be opened for estate accounts, including guardianships and conservatorships. A Schwab Personal Choice Retirement Account is eligible for Marketplace only. Please note that due to the Security and Exchange Commission's "pay to play" rule, a non-federal government entity Tooltip is eligible for Marketplace but not for Select or Access. Account features may be limited for certain types of managed accounts. If you have questions about eligible registration types and features for managed accounts, contact Managed Account Operations at 877-595-6345 or via a Schwab Advisor Center service request.

Do I have additional regulatory requirements if I use a money manager?
Yes. You should be familiar with your obligations under the Investment Advisers Act of 1940 and Rule 3a-4 under the Investment Company Act of 1940 when using managed accounts. In the Managed Accounts Addendum to the Investment Manager Service Agreement with Schwab, you agree to meet applicable regulatory requirements. Consult with your legal or compliance professionals regarding your obligations in this area.

If multiple signers are assigned to eSign a form, in which order do the signers receive and eSign the form(s)?
The order the signers are notified that a document is pending eSignature depends on the order in which you listed the signers on the envelope-creation page. Signers receive an email notification in sequential order after each signer has completed their signing.

If my client makes changes to a form when eSigning, will I be notified of the changes?
No. Once all signers have completed their eSigning, you will not be able to edit any of the information. However, if you have elected to review the forms prior to submitting to Schwab, you will have an opportunity to review the forms.

How to add an additional managed account, or change or terminate a money manager
How to select investment strategies for managed accounts
How to open a qualified retirement plan (QRP)
How to open a SEP-IRA
How to open an individual 401(k) plan
How to set up a managed account master
How to use DocuSign®
Introduction to managed accounts
Introduction to options trading
Introduction to Retirement Plan Solutions
Introduction to turnkey asset management providers through Schwab

The Schwab Center for Financial Research ("SCFR") is a division of Charles Schwab & Co., Inc. ("Schwab") that evaluates money managers (MMs) in Schwab's Managed Account Select ("Select") program. The Select program is sponsored by Schwab. Schwab does not provide advice or recommendations regarding managed account strategies or MMs to investment advisors or their clients.

Schwab does not provide legal, regulatory, tax, or compliance advice. Consult professionals in these fields to address your specific circumstance.

TAMP services may vary depending on which TAMP provider you choose. Schwab does not recommend or endorse any particular TAMP. Schwab is not affiliated with any of the TAMPs available in Marketplace. Schwab makes no representation or warranty about any TAMP or its suitability for your clients. Schwab does not guarantee the accuracy of the information about the services provided by any particular TAMP.

Asset-based fees do not include costs for trades executed away from Schwab, exchange and regulatory fees, transfer taxes, odd lot differentials, mutual fund short-term redemption fees, margin interest, electronic funds or wire transfer fees, and any other similar costs or charges.

Transaction-based pricing on Marketplace accounts is similar to the transaction-based pricing on non-managed accounts. For trade commission pricing, contact your relationship manager. Trades with other broker-dealers may have separate fees or commissions.

Options carry a high level of risk and are not suitable for all investors. Certain requirements must be met to trade options through Schwab. Please read the options disclosure document titled Characteristics and Risks of Standardized Options before considering any option transaction.

Margin borrowing involves substantial risk and is not suitable for all investors.  It's important that you fully understand your financial situation, the rules of margin borrowing, and conditions that may affect your investments. Please read the margin risk disclosure carefully.

Visa® is a registered trademark of Visa U.S.A. Inc. Please see the Visa® debit card agreement for any additional terms and conditions.

DocuSign and the DocuSign logo are trademarks or registered trademarks of DocuSign, Inc. in the United States and/or other countries.

Adobe Reader and Adobe Acrobat are registered trademarks or trademarks of Adobe in the United States and/or other countries.

Please read the Schwab Managed Account Services™ Disclosure Package for important information and disclosures regarding the Managed Account Select® ("Select") and Managed Account Access® ("Access") programs. In addition, please read the participating money manager's ("MM's") disclosure brochure, including any supplements for important information and disclosures. Investments in managed accounts should be considered in view of a larger, more diversified investment portfolio. Services may vary, depending on which MM you choose, and are subject to an MM's acceptance of the account.

The Select and Access programs are sponsored by Charles Schwab & Co., Inc. ("Schwab"). The MMs in Select are not affiliated with Schwab. The Schwab Center for Financial Research ("SCFR") is a division of Schwab. In Select, SCFR conducts an operational evaluation of MMs, monitors the MMs performance periodically, and provides research. In Access, SCFR conducts operational evaluations of unaffiliated MMs. Schwab does not provide advice or recommendations regarding managed accounts, MMs, or securities to investment advisors or their clients. Independent investment advisors are not owned by, affiliated with, or supervised by Schwab.

The Managed Account Marketplace® ("Marketplace") platform is not a program sponsored by Schwab. Marketplace is an open architecture platform that gives investment advisors and their clients' access to separate account managers and turnkey asset management providers (TAMPs). Participating MMs and TAMPs need to establish a contract and have system compatibility with Schwab in order to be in Marketplace. The MMs, TAMPs, and their investment strategies available in Marketplace are not evaluated by Schwab.

(0923-35D1)