TD Retirement Plan closes on April 1st as a part of the Schwab integration for brand new prospects

Charles Schwab is retiring from TD Ameritrade’s defined contribution business for RIAs to take over the unit in the future.

The TDA pension plan will be closed to new customers from April 1st. Instead, the business goes to the Schwab pension network for consultants, said a company spokesman in a statement. Schwab plans to “combine” elements of both systems in order to “provide an expanded offering for consultants”.

The TD product provides record keeping, plan management, and custody for 401 (k), 403 (b), and 457 plans.

Both the Schwab and TD systems are specialty products used primarily by consultants who work with small or medium-sized business owners who want to provide 401 (k) s to their employees. Only about 5% of the company’s consultants use both products, the spokesman said. Schwab declined to say how much business there is in both systems as these statistics are not made public.

News that the plan would be closed to new customers on April 1st was reported by Citywire on Wednesday.

Last month, Schwab announced that 200 employees would be cut across its entire company. This is the second round of reductions since the acquisition of TD Ameritrade. In October 2020, when the acquisition was completed, it announced that the combined workforce would be reduced by about 3% or about 1,000 fewer jobs due to overlapping roles.

Last year, Schwab announced that the two companies would act as separate broker-dealers until their final integration. This process would take an estimated 18 to 36 months. At the time of the acquisition, the two companies had approximately $ 6 trillion in assets under management.

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