Personal Defined Benefit Plan
Schwab’s Personal Defined Benefit Plan helps self-employed and small business owners save aggressively for retirement by allowing you to make very high contributions. Just target a desired level of retirement income, and contribution amounts are adjusted each year to help you reach your goal.
What are the fees and commissions?
- Variable fees starting at $1200 for setup, plus annual service fees
- Commissions: $8.95 per online trade1; $0 per Schwab ETF online trade in your Schwab account2
There are no fees to open or maintain your account. Other fees may apply; please see Account Pricing.
What do I get with this defined benefit account?
Every Schwab account comes with one-on-one investment help and guidance. With this plan, you’ll also get:
- A customized funding proposal
- High contributions that are generally 100% tax-deductible, within IRS limits.
- A way to contribute to employee accounts
- A predetermined benefit at retirement
- Expert recordkeeping and plan service
- Retirement planning tools and resources
1. Restrictions apply: The $8.95 commission does not apply to foreign stock transactions, large block trading transactions requiring special handling, or restricted stock transactions. All broker-assisted and automated phone trades are subject to service charges. See the Charles Schwab Pricing Guide for details. Employee equity compensation transactions are subject to separate commission schedules.
2. Restrictions apply: Online trades of Schwab ETFs™ are commission-free at Charles Schwab & Co., Inc. (member SIPC), while trades of third-party ETFs are subject to commissions. Broker-assisted and automated phone trades are subject to service charges. A minimum deposit of $1,000 is required to open most Schwab brokerage accounts. Waivers may apply. See the Charles Schwab Pricing Guide for details. All ETFs are subject to management fees and expenses.
3. A key employee is defined as an employee who is at least a 5% owner or who is a 1% owner with annual compensation of $165,000 or more. Staff are any employees who are not key employees.
Investors should consider carefully information contained in the prospectus, including investment objectives, risks, charges, and expenses. You can obtain a prospectus by visiting www.schwabetfs.com. Please read the prospectus carefully before investing.
Investment returns will fluctuate and are subject to market volatility, so that an investor’s shares, when redeemed or sold, may be worth more or less than their original cost. Unlike mutual funds, shares of ETFs are not individually redeemable directly with the ETF.
This information is not intended to be a substitute for specific individualized tax, legal or investment planning advice. Where specific advice is necessary or appropriate, Schwab recommends consultation with a qualified tax advisor, CPA, Financial Planner or Investment Manager.
Account must be approved and funded before trading can occur.
Schwab ETFs are distributed by SEI Investments Distribution Co. (SIDCO). SIDCO is not affiliated with Charles Schwab & Co., Inc.