Brokerage Window

Posted in Finance, Accounting and Economics Terms, Total Reads: 650

Definition: Brokerage Window

Brokerage windows might be defined as a type of defined contribution plan that allows plan participants to select a more large number of investments through the broker. They would enjoy the same tax advantages as a regular defined contribution plan would do.

One example is that of retirement plan 401(k). With retirement plans being used in a 'window' to invest in a lot of securities like stocks, funds etc, the risk is high.

Through brokerage windows, the existing retirement plan gets a lot more options even more than the core offerings of the plan to begin with.

The brokerage window is relatively a new thing, still it is quickly earning popularity. Lot of questions are now being raised on the brokerage window concept.

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