Long Island Educators and Public Employees

Self-Directed Investment Accounts in the New York State Deferred Compensation Plan

The New York State Deferred Compensation Plan (NYSDCP) offers a Self-Directed Investment Account through the Schwab Personal Choice Retirement Account (PCRA). It lets you move part of your balance into more than 3,200 mutual funds and ETFs, and the money stays inside the plan. We can walk through how it works and whether it fits with the rest of your savings.

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Meet in Hauppauge or by video through Atlas VirtualWealth. Sessions take about 45 minutes, and we go at your pace.

What a Self-Directed Account Gives You

In NYSDCP, the Schwab PCRA sits inside the plan, next to the core funds. You move part of your balance into it, and from there you can choose from more than 3,200 mutual funds and exchange-traded funds (ETFs). Because the money never leaves the plan, it's still governed by the 457(b) rules, and every rule on your core account applies to it too.

The trade-off is that you do the choosing. The plan reviews its core funds, but it doesn't review the funds you pick in the PCRA, so you're responsible for the selections and for keeping an eye on them.

Who Can Use the Plan

NYSDCP is open to New York State employees and to employees of local public employers that have chosen to join the plan. That can include school districts, counties, towns and other public employers, but not every employer takes part, so your benefits office is the place to confirm whether you can join.

How the PCRA Works in NYSDCP

You need at least $10,000 in the plan's core funds when you make your first transfer into the PCRA.
Your first transfer has to be at least $2,500, and each transfer after that at least $500.
Later transfers are allowed only as long as your core balance stays at least as large as your PCRA balance.
Your payroll contributions keep going into the core funds. Money reaches the PCRA only by transfer, and withdrawals come from the core account, not the PCRA.
You can choose mutual funds and ETFs. Individual stocks, bonds and options aren't allowed, and the plan's own core funds and tax-exempt funds aren't available through the PCRA.
The plan charges a one-time $15 setup fee and a $15 yearly fee, taken from your core account. Schwab doesn't charge a separate PCRA fee, but transaction fees and each fund's own costs can apply.

Rules, fees and fund choices can change, so it's a good idea to confirm the current details with the plan or Schwab before you act.

How We Can Help

Christopher J. Vargas, LUTCF®, leads complimentary Atlas VirtualWealth sessions for Long Island educators and public employees. We'll go over how the PCRA is set up, what it can hold, and how it sits next to your pension and your other retirement accounts. You won't be asked to open anything on the call.

What to Expect

Pick a time that works for you. Sessions are by video.
We'll look at how the self-directed account works and how it fits with your other savings.
You'll leave with clear information and a few options for next steps, with no pressure either way.

Book a Complimentary Atlas VirtualWealth Session

No obligation.

Frequently Asked Questions

What is the self-directed account in NYSDCP?

It's the Schwab Personal Choice Retirement Account (PCRA). It lets you move part of your balance into more than 3,200 mutual funds and ETFs, and the money stays in the 457(b) plan.

Who can open one?

You need at least $10,000 in the core funds when you make your first transfer, and that first transfer has to be at least $2,500.

Does it cost extra?

The plan charges a one-time $15 setup fee and a $15 yearly fee, taken from your core account. Transaction fees and each fund's own costs can also apply, so it helps to add these up before you move money.

Can I take withdrawals straight from the self-directed account?

No. Withdrawals come from the core account, so money has to move back there first.

How can Atlas Benefits Advisor help?

In a complimentary Atlas VirtualWealth session, we'll go over how the option works and how it relates to your other accounts, so you can decide what makes sense for your household.

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