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 $2,250 for setup, plus annual service fees
- Commissions: $0 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 predetermined benefit at retirement
- Expert recordkeeping and plan service
- Retirement planning tools and resources
The following fees apply to the Schwab Personal Defined Benefit Plan:
- Variable fees based on the total number of participants, starting at $1,750 for one person
- Annual service fees based on the total number of participants, starting at $1,750 for one person
- Plan termination fees
- Trade commissions: $0 per online trade;1 $0 per Schwab ETF online trade in your Schwab account2
|Type of Business||One person only||Key employees only*||Employers with staff*|
|Starting a new Schwab Personal Defined Benefit Plan||Setup fee: $2,250||Setup fee: $2,250||Setup fee: $2,250|
|Annual service fee: $1,750||Annual service fee: $2,000||Annual service fee: $2,600 for up to 3 participants. $3,000 for 4-5 participants.|
*A key employee is an employee who, at any time during the plan year, is (1) an officer having annual compensation greater than $185,000 (subject to cost-of-living adjustments); (2) a 5% owner; or (3) a 1% owner whose annual compensation exceeds $150,000. Staff are any employees who are not key employees.
Find out more about our fees and minimums.
Have questions about our Personal Defined Benefit Plan? Here are responses to some of the most common questions we hear. If you have a specific question that’s not answered here, please call us at 800-435-4000.
- How do I establish a plan and how long will it take?
- Who is a Personal Defined Benefit Plan for?
- What are the tax advantages of a Personal Defined Benefit Plan?
- What are the contribution limits?
- When should I establish and fund my Personal Defined Benefit Plan?
- What do I need to know about administering a Personal Defined Benefit Plan?
- What are the rules for making withdrawals from a Personal Defined Benefit Plan?
Our dedicated team of actuaries will design a detailed customized funding proposal to give you the information you need to decide if this plan is right for you. Next, Schwab will contact you to review your proposal and work with you to establish your account. Follow these instructions to receive your complimentary funding proposal. Need help? Call 800-435-4000.
- Download and read the Schwab Personal Defined Benefit Plan fact sheet.
- Download and read our Q&A Guide.
- Download, print, and fill out the Funding Proposal Worksheet.
- Return your completed Schwab Personal Defined Benefit Plan Funding Proposal Worksheet to Schwab.
Schwab Personal Defined Benefit Department
Charles Schwab & Co., Inc.
P.O. Box 407
Richfield, OH 44286-0407