Self-Direct Brokerage
sdb Direct Advantage
RETIREMENT & BENEFIT PLAN SERVICES
Merrill Lynch Wealth Management makes available products and services offered by Merrill Lynch, Pierce, Fenner & Smith Incorporated
(“MLPF&S”) and other subsidiaries of Bank of America Corporation (“BAC”). MLPF&S is a registered broker-dealer, Member SIPC and a
wholly owned subsidiary of BAC.
Investment Products:
Are Not FDIC Insured
Are Not Bank Guaranteed
May Lose Value
The Self-Direct Brokerage Account
Your employer is pleased to offer the Self-Direct Brokerage (sdb) account. An sdb account gives you
more flexibility in managing your retirement savings by providing a wide range of mutual funds in
addition to your Plan’s core investment menu.
The Self-Direct Brokerage account, called sdb Direct Advantage, is a self-service, participant-directed online
account. Details are provided in this brochure and on Benefits OnLine® at www.benefits.ml.com.
Table of Contents
Page
What is Self-Direct Brokerage? . . . . . . . . . . . . . . . . . . . . . . . 2
Working with Merrill Lynch . . . . . . . . . . . . . . . . . . . . . . . . . 2
Self-Direct Brokerage Accounts . . . . . . . . . . . . . . . . . . . . . . 3
How Self-Direct Brokerage Works . . . . . . . . . . . . . . . . . . . . . 5
Trading in Your Account . . . . . . . . . . . . . . . . . . . . . . . . . . 6
Managing Your Account . . . . . . . . . . . . . . . . . . . . . . . . . . 7
Is Self-Direct Brokerage Right for You? . . . . . . . . . . . . . . . . . . . 8
1
What is Self-Direct Brokerage?
As a 401(k) plan participant, you have the opportunity to invest a portion of your retirement plan account balance
into a wider variety of investments than is available through your 401(k) core investment menu.
With a Self-Direct Brokerage account,
you benefit from:
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Greater Investment Choice
Access to a comprehensive range of mutual funds.
Ease of Access
Online access to your sdb account when it is most
convenient for you, virtually 24 hours a day, seven
days a week.
Flexibility
Transfer funds between your employer-sponsored
retirement plan’s core investment menu and your sdb
account as often as you like (subject to transaction
settlement periods).
Working with Merrill Lynch
When you enroll in Self-Direct Brokerage, you’ll enjoy
all the advantages of working with one of the world’s
leading financial services companies. These include
online access to financial tools and research, the ability
to establish up to 10 separate sdb accounts (or as
permitted by your plan) and automated mutual
fund investing.
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Getting Started is Easy
sdb Direct Advantage
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You can open an sdb Direct Advantage account
online at www.benefits.ml.com. By enrolling
online, you can begin trading immediately, once
you have funded the account.
Or you can speak to a participant service
representative at (866) 218-INFO (4636)
for assistance with the online application.
Representatives are available Monday through
Friday, 8 a.m. – 7 p.m. (ET).
Merrill Lynch provides convenient access to investing information — including research and news from
BofA Merrill Lynch (BofAML) Global Research,1 Standard & Poor’s and Morningstar.
In addition, our Automated Investment Program can help simplify investing in an sdb account. You can invest a
fixed dollar amount in the mutual funds of your choice at the frequency you select. 2
We make it easy to keep track of your sdb account — whether you have one account or 10 — with monthly
brokerage activity statements and quarterly retirement account statements, sent to you directly and available
on Benefits OnLine®.
Even after you retire or change employers, you can continue to enjoy the advantages of working with
Merrill Lynch with a rollover to a Merrill Lynch IRA.
1
ofAML Global Research is research produced by Merrill Lynch, Pierce, Fenner & Smith Incorporated (MLPF&S)
B
and/or one or more of its non-U.S. affiliates. MLPF&S is a wholly owned subsidiary of Bank of America Corporation.
2
T he Automated Investment Program cannot be established with an initial mutual fund purchase. To participate in this
program, you must already have a balance in the applicable mutual fund(s).
2
Self-Direct Brokerage Accounts
An sdb account offers:
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Over 1,400 mutual funds available at NAV through the Mutual Fund Alliance.
Almost 500 mutual funds available, for a transaction fee, through the Mutual Fund Supermarket (available
through Direct Advantage only). Please note that transaction fees will be assessed for these funds on buy and sell
transactions.
Transaction Fees for “Supermarket” Mutual Funds3
Most of the mutual funds available through Self-Direct Brokerage are offered on a “load-waived” or “no-load” basis.
This means that these funds are sold at net asset value, without an additional transaction fee. This is, generally,
more favorable pricing than you would find in a retail brokerage account.
However, certain funds, known through Self-Direct Brokerage as “Supermarket” funds, are subject to a fee of
$49.95 if purchased or sold online or $74.95 if purchased or sold through a participant service representative. On
the Benefits OnLine website, these funds will be labeled with an icon to indicate that a fee applies. You can also call
the Retirement & Benefits Contact Center and speak to a representative for this information. As you can see, the
fee is lower when you conduct the transaction online. Other applicable fees and expenses are described in each
fund’s current prospectus. Please review this information before you invest.
3
T he “Supermarket” funds are offered to participants at the discretion of the plan sponsor. Your plan may or may not
offer this option. Visit Benefits OnLine at www.benefits.ml.com or call (866) 218-INFO (4636) for more information.
3
sdb Direct Advantage
The sdb Direct Advantage account allows participants to buy, sell and manage a variety of mutual funds online, in
addition to the plan’s core investment menu choices. It is designed for confident investors who are interested in
creating and managing their own investment strategies and accounts.
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Ability to begin funding your account the same day you open it, subject to applicable transaction settlement
periods. Simply liquidate any eligible assets, as needed, in your core plan account and transfer the proceeds into
your new account. You may begin trading the next business day after cash has been moved into the account.
Ability to direct future contributions into your account.
Ability to have all of your eligible assets rolled over “in-kind” to a Merrill Lynch IRA if you retire or separate from
service with your employer. Note that in-kind, in-service withdrawals are not available.
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Ability to establish up to 10 separate sdb accounts, or as permitted by your plan.
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Access to research and news from BofA Merrill Lynch (BofAML) Research, Standard & Poor’s and Morningstar.
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Monthly brokerage activity statements and quarterly retirement account statements.
4
How Self-Direct Brokerage Works
Transferring Funds
Self-Direct Brokerage differs from a typical brokerage account because it is funded only through investments in
your employer-sponsored retirement plan. You can transfer assets from your plan’s core investment menu to your
sdb account and/or direct new contributions to the sdb account. As soon as you open an sdb account and receive an
account number, you can fund the account (subject to applicable transaction settlement periods) by transferring
money from your core retirement plan account into your sdb account. Cash transferred to your sdb account that is
not invested after one trading day will be swept automatically into the BIF Money Fund.4
Typically, you will need to liquidate investments held in your core account, such as shares of a mutual fund. Once the
trades settle, you will need to transfer the money to your sdb account. To initiate a transfer, visit www.benefits.ml.com
or call a participant service representative.
You may transfer funds between your plan’s core investment options and your sdb account as often as you like (subject
to applicable transaction settlement periods). Exchanges to and from the core investment menu and sdb accounts
will result in the assets transferred being “out of the market” or not invested for a one-day period. You cannot make
direct deposits or transfer assets from other brokerage accounts directly into an investment within your sdb account.
However, you can direct future plan contributions into your sdb account.
Self-Direct Brokerage Account
(BIF Money Fund)
SELL
Self-Direct
Brokerage
r Funds
Transfe
Core Retirement
Plan Investments
s
r Fund
Transfe
BUY
Self-Direct Brokerage
Investments
The BIF Money Fund is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other
government agency. Although the Fund seeks to preserve the value of your investment at $1.00 per share, it is
possible to lose money by investing in this Fund.
4
5
Trading in Your Account
To process orders to purchase mutual funds, the account must contain sufficient funds to pay for all open orders.
Any order executed without sufficient funds will be subject to cancellation or liquidation. You are responsible for all
orders, including any orders that exceed available funds.
When you place an order to buy or sell shares of a mutual fund, the trade will take place at the Net Asset Value
(NAV), which is determined at the end of each trading day. You are not guaranteed a specific execution price.
Mutual fund trades are generally settled in one trading day.
Invest Wisely
There is no substitute for wise planning when making investment decisions.
Understand the securities you are trading, and know what your goals are for
each investment. Most of all, understand your own risk tolerance and the
risks involved with each of your investments. Visit Benefits OnLine at
www.benefits.ml.com for a risk tolerance guide, as well as other materials
and resources to help you make your decisions.
How Taxes Apply to Your Account
If assets held in your sdb account increase in value, and you then sell the assets, proceeds of the sale cannot be
treated as capital gains for tax purposes. If included in a plan distribution, the proceeds will be treated as ordinary
income in the year the payment is received. On the other hand, all assets in your account remain tax-deferred until
distribution (a 10% additional federal tax may apply to distributions you receive before age 59½).
Loans and Withdrawals
Loans and withdrawals cannot be made directly from your sdb account. However, assets in your sdb account will be
used to calculate any loan or withdrawal eligibility according to the rules of your plan. If you wish to fund a loan or
withdrawal with your sdb assets, you first must sell one or more of the mutual funds in your sdb account by placing
a sell order. Then, transfer the desired assets into your 401(k) account to complete the transaction.
Dividends
Dividends will be reinvested according to your instructions.5 However, you cannot elect to receive dividends
by check.
Total Distributions
You may take a total distribution only if you retire or separate from service with your employer. For cash
distributions, all of your Self-Direct holdings would need to be sold prior to the total distribution. For in-kind
distributions, all eligible funds can be transferred in-kind to a Merrill Lynch IRA or Cash Management Account®
(CMA®) (any non-eligible funds would need to be sold prior to the total distribution). Note that in-kind, in-service
distributions are not available. All proceeds of the total distribution can be directed to a participant’s home address
on file, Merrill Lynch IRA or Merrill Lynch CMA.
5
Dividend reinvestment instructions can only be made at the time of initial purchase.
6
Managing Your Account
You can access your Self-Direct Brokerage account information on Benefits OnLine at www.benefits.ml.com
virtually 24 hours a day, seven days a week or by contacting a participant service representative, Monday through
Friday, from 8 a.m. – 7 p.m. (ET) at (866) 218-INFO (4636).
Statements and Confirmations
You’ll receive a monthly brokerage activity statement and a quarterly retirement account statement. After
completing a trade, a transaction confirmation will be mailed to your address on record. If you place a trade online,
you will have the option of receiving your confirmation electronically or by regular mail.
Recordkeeping Fees, Other Fees and Commissions
All account holders are generally assessed an annual recordkeeping fee. The total fee will be deducted from the
balance invested in the BIF Money Fund in the sdb account. The sdb annual recordkeeping fee is assessed only
once, regardless of the number of accounts opened. This fee varies by plan and is subject to change. For specific
information, please see the “Fees and Commissions” description available on Benefits OnLine, or check with your
plan administrator.
Note: Commission schedules and fees are subject to change. Commission fees are in addition to the fees described
in each fund’s prospectus. Other charges and expenses may apply. Please see the prospectuses for details.
Viewing your Account(s)
sdb accounts can be viewed only on Benefits OnLine. You can also view other
Merrill Lynch retirement accounts on Benefits OnLine.
Non-retirement accounts (such as CMA accounts) can be accessed only
through www.mymerrill.com.
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Is Self-Direct Brokerage Right for You?
Self-Direct Brokerage is designed for knowledgeable investors who feel comfortable making their own investment
decisions. With an sdb account, you are solely responsible for choosing the investment options and determining the
suitability of those options that are available through Self-Direct Brokerage. Eligibility requirements and minimum
core balances may apply.
Ask yourself the following questions:
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Are you willing to pay an annual recordkeeping fee?
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Do you want more investment choices than your retirement savings account provides?
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Are you an experienced investor who wants to maintain control over your investments?
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Do you have the time to research, select and monitor your own investment portfolio?
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Are you comfortable with more potential risk?
If you’ve answered yes to these questions, then an sdb account may be right for you. If not, then the core investment
menu made available through your employer-sponsored retirement plan may be sufficient to meet your needs.
Want to learn more or enroll?
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Log on to Benefits OnLine at www.benefits.ml.com,
click on the “Investments” tab, then choose “SelfDirect Brokerage” from the drop-down menu.
Call a participant service representative at
(866) 218-INFO (4636), Monday through Friday,
8 a.m. to 7 p.m. (ET), for questions or assistance
with the online application.
Access to the money in this account is regulated according to the Internal Revenue Code (IRC) and other applicable
legislation. Merrill Lynch will not determine or advise you whether your investment or trading activity is permissible
under or consistent with the Employee Retirement Income Security Act of 1974 (ERISA), the Internal Revenue Code, or
your retirement plan. Each retirement plan has certain restrictions that all participants are required to follow.
The investments you make through Self-Direct Brokerage are made solely at your discretion as a plan participant. The
plan, its trustees and Merrill Lynch are not responsible for selecting or monitoring the available Self-Direct Brokerage
investments. The plan or its trustees may revoke Self-Direct Brokerage at any time.
Investing involves risk, including the possible loss of principal. There are ongoing fees and expenses associated with
investing. Bear in mind that higher return potential is accompanied by higher risk.
Investors should consider the investment objectives, risks, charges and expenses of investment options carefully
before investing. This, and additional information about the investment options, can be found in the prospectuses
and, if available, the summary prospectuses, which can be obtained on Benefits OnLine at www.benefits.ml.com or
by calling a participant service representative. Investors should read the prospectuses and, if available, the summary
prospectuses carefully before investing.
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Unless otherwise noted, all trademarks and registered trademarks are property of Bank of America Corporation. ©2012 Bank of America Corporation. All rights reserved.
20121871-5
AR22F6L0 | 06-2012