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NY State Deferred Compensation Plan Self-Directed Investment Accounts

NY State Deferred Compensation Plan Self-Directed Investment Accounts | Atlas Benefits Advisor

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NY State Deferred Compensation Plan Self-Directed Investment Accounts

New York State Deferred Compensation Plan

The Schwab Personal Choice Retirement Account (PCRA) is a self-directed investment option available to eligible participants. It allows transfer of a portion of core plan assets into a broader selection of mutual funds and ETFs while the money remains inside the 457(b) plan.

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What the self-directed option provides

A Self-Directed Brokerage Account (SDBA) is a feature available in many workplace retirement plans that provides access to a wider range of investment choices beyond the plan’s standard (core) options. The money remains inside the employer’s retirement plan.

In the New York State Deferred Compensation Plan, this feature is offered through the Schwab Personal Choice Retirement Account (PCRA). Eligible participants may transfer a portion of their Core Plan Account into mutual funds and exchange-traded funds beyond the Plan’s core menu. Assets remain inside the 457(b) plan and continue under the plan’s tax treatment and rules.

Source disclosure

General educational background on the concept of a Self-Directed Brokerage Account is drawn from the AssetMark Investor Brochure titled “Your Guide to Self-Directed Brokerage Accounts (SDBAs)” (©2025 AssetMark, Inc.).

AssetMark is not affiliated with the New York State Deferred Compensation Plan, Charles Schwab, or Atlas Benefits Advisor in connection with this content. The New York State Deferred Compensation Plan offers its self-directed investment account exclusively through the Schwab Personal Choice Retirement Account (PCRA). The general concept described in the AssetMark brochure is provided for educational background only and does not describe the specific features, investment options, fees, eligibility rules, or restrictions of the NYSDCP PCRA.

Investment selection

Access to more than 3,200 mutual funds and a range of exchange-traded funds beyond the core menu.

Allocation approach

Participants may allocate a portion of their account among the available mutual funds and ETFs according to their own selections.

Who may be eligible for the New York State Deferred Compensation Plan

The Plan is available to employees of the State of New York and of participating public employers. Participating employers typically include counties, cities, towns, villages, school districts, public authorities, and other public entities that have elected to join.

State & local government

  • New York State agency and department employees
  • County employees (including Nassau and Suffolk)
  • City, town, and village staff
  • Employees of participating public authorities and special districts

Public education & related roles

  • Public school teachers and administrators
  • Non-instructional school district staff in participating districts
  • Certain BOCES and public higher-education employees
  • Elected or appointed officers and their staff

Temporary and part-time employees are generally eligible. There is no minimum age or service requirement. Independent contractors are not eligible. Eligibility depends on whether your specific employer has elected to participate in the Plan.

Key parameters and operating rules for the PCRA

Eligibility threshold: Core Plan Account balance of $10,000 or greater required at the time of initial funding.
Initial transfer: Minimum $2,500 from the core account.
Ongoing balance rule: Subsequent transfers are permitted only to the extent the core balance remains equal to or greater than the PCRA balance.
Contribution path: Future payroll deferrals continue into the core options. Capital is moved into the PCRA by transfer.
Investment scope: Mutual funds and ETFs only. Individual equities, fixed-income securities, and options are not available.
Fees: $15 one-time setup fee and $15 annual administrative fee (deducted from the Core account), plus any underlying fund or applicable transaction costs.
Responsibility: Investments within the PCRA are not monitored by the New York State Deferred Compensation Board or Plan staff. Participants are responsible for selection and ongoing oversight.

Rules, fees, and available investments are subject to change. Confirm current details directly with the Plan or Schwab before proceeding.

Discussing the option with Atlas Benefits Advisor

Atlas Benefits Advisor offers complimentary VirtualWealth sessions for Long Island professionals and public-sector participants. These sessions review the features of the PCRA, discuss how it relates to other accounts, and provide information relevant to your situation.

Feature review

Sessions include a review of the structure, eligibility rules, and available investment types of the self-directed account.

Context discussion

Sessions discuss the option in relation to pension income, other retirement accounts, and overall holdings.

VirtualWealth sessions

Complimentary meetings conducted virtually that focus on information and discussion of available options.

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Frequently asked questions

What is the self-directed investment account available in the NY State Deferred Compensation Plan?

The New York State Deferred Compensation Plan provides a Self-Directed Investment Account through the Schwab Personal Choice Retirement Account (PCRA). Eligible participants may transfer a portion of their core balance into a broader universe of mutual funds and ETFs while the assets remain inside the 457(b) plan and retain tax-advantaged treatment.

Who qualifies to open a PCRA within the NYSDCP?

Participants generally require a core Plan Account balance of at least $10,000 at the time of the initial transfer. The first transfer must be a minimum of $2,500. Subsequent transfers are permitted only to the extent the core balance remains equal to or greater than the PCRA balance.

What investment choices does the PCRA provide?

The PCRA provides access to more than 3,200 mutual funds and a range of exchange-traded funds. Individual stocks, bonds, and options trading are not available. Core Plan mutual funds and tax-exempt funds are typically excluded.

What additional costs are associated with the self-directed account?

A one-time $15 setup fee and a $15 annual administrative fee apply. These are deducted from the Core Plan Account. Fund-level expenses and certain transaction costs may also apply depending on the specific investments selected.

Do assets in the PCRA remain inside the deferred compensation plan?

Yes. All assets transferred to the PCRA stay within the New York State Deferred Compensation Plan and continue to receive 457(b) tax treatment and plan protections. Direct payroll contributions and distributions cannot be processed from the PCRA; funds must first return to the core account.

How does Atlas Benefits Advisor support participants evaluating the self-directed option?

Through complimentary VirtualWealth sessions, Atlas Benefits Advisor reviews the PCRA features, discusses how the option relates to other accounts, and provides information relevant to a participant’s situation.

Discuss the self-directed option

Schedule a complimentary VirtualWealth session to review the features of the PCRA and discuss how it relates to your overall retirement accounts.

20+ Years Experience Client-First Virtual + Local / Nationwide

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