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Schwab PCRA explained: the Personal Choice Retirement Account in your 401(k)
PCRA stands for Personal Choice Retirement Account. It is Schwab's self-directed brokerage account, and it sits inside your employer's 401(k).
Last reviewed: November 2026
What Schwab calls it
Schwab calls it a self-directed brokerage account that "resides within your employer-sponsored retirement plan." It is not a separate IRA or a personal Schwab account.
Your 401(k) has to offer it. Schwab says your plan provider "must offer PCRA as part of your retirement plan" before you can open one.
Your 401(k) website may be run by another firm, such as Vanguard or Empower, with the PCRA held at Schwab. Adobe's 401(k), for example, offers it through Vanguard.
401(k) filings name it in different ways. We see "Personal Choice Retirement Account," "PCRA" and "Schwab self-directed brokerage account."
Who Schwab says it is for
Schwab says a PCRA "is appropriate for knowledgeable, experienced investors." Schwab lists people who "are seeking a wider range of investments."
Schwab also lists people who "can dedicate more time" to it, and who are "comfortable making more of their own investing decisions."
Schwab "is restricted from providing advice on PCRAs." But Schwab adds that your 401(k) "may even allow" an advisor to manage it. So self-directed does not have to mean alone.
What it costs, in dollars
Schwab doesn't charge a fee for the account itself. Your 401(k) may charge an administrative fee, and some trades cost money.
- Utah's state retirement plan charges $12 a quarter for each plan with a PCRA.
- Minnesota's state deferred compensation plan charges $30 a year.
- Listed stocks and ETFs trade commission-free online, per Schwab's brochure for employers. Options cost $0.65 per contract.
- Funds in Schwab's Mutual Fund OneSource service have no transaction fee. Other funds cost $49.95 per online purchase, per Schwab's 2021 pricing summary.
- If you hire an advisor, their fee is separate. Schwab's pricing guide says your account "may be subject to your advisor's fee schedule."
Minimums are set by your 401(k)
Schwab sets no minimum for the account. Some 401(k)s set their own, so it's worth a quick check.
- Utah's state 401(k) requires a $30,000 balance, $1,000 kept in its regular funds, and at least $1,000 per transfer.
- New York's state deferred compensation plan requires $10,000 in its regular funds and a first transfer of at least $2,500.
What you can hold in it
A PCRA can include stocks, ETFs, bonds and mutual funds.
Your employer chooses what it allows. It can allow everything, or mutual funds only, or block certain types of investment.
Some things are never allowed. These include margin, short sales, futures, collectibles, private placements and physical precious metals. Options depend on your 401(k).
Working with an advisor on a PCRA
Schwab says your 401(k) "may even allow" your advisor to manage your PCRA. If your 401(k) allows it, here is how that works.
- The advisor is authorized on the account with a Schwab form. Schwab's form lets them trade, never withdraw.
- The advisor must have a relationship with Schwab Advisor Services.
- The advisor manages the account through Schwab Advisor Center, the platform Schwab runs for independent advisors.
- Your 401(k) decides whether the advisor's fee can come out of the PCRA.
Schwab's March 2026 pricing guide adds one detail. Accounts with these advisors "may be able to purchase additional institutional share classes without a transaction fee."
Keep the word "may." Your 401(k) can still restrict investments.
Schwab's brochure for employers mentions one more option. Multiple PCRAs can give employees "the option of having separately managed accounts with different money managers." That is your employer's choice to make.
Schwab says it supports more than 15,000 registered investment advisors who can work with PCRA. Read more about advisors and your 401(k).
401(k)s that offer the Schwab PCRA
The State of Utah's own 401(k) offers it. So do Adobe and the Southwest Airlines pilots' plan, where about 21 cents of every dollar is invested in it.
Intermountain Health's 401(k) has Schwab self-directed accounts too, with about 6 cents of every dollar. These figures come from 2024 filings.
How to open one
Start in your 401(k) website, not at Schwab. Look under investment options for "PCRA," "brokerage" or "self-directed." Here is the step-by-step.
Schwab's PCRA call center is 1-888-393-7272. Not sure your 401(k) has one? Check three ways.
Questions people ask
Any additional fees?
Schwab doesn't charge a fee for the account itself. Your 401(k) may charge an administrative fee, and some trades cost money. Utah's state 401(k) charges $12 a quarter. Stock and ETF trades online are commission-free.
Is it as tax-sheltered as the retirement account?
Yes. Schwab says the PCRA resides within your employer's retirement plan. The money stays in your 401(k) and keeps its tax treatment.
Does money go in automatically or do I do it manually?
You move it yourself. Schwab says you decide how much money to transfer from your 401(k) into your PCRA. You make the transfer on your 401(k) website.
Is there any catch or caveat?
A few. Your 401(k) may set a minimum balance, a transfer limit or a fee. Your 401(k) may limit what you can buy. And Schwab cannot give you advice on the account.
Is it worth it?
That depends on your balance and what you want from it, and we can't decide it for you. Your employer can't give investment advice, so nobody at work can walk you through it. Ask us and we'll walk you through it, step by step.
Is my current fund just fine?
We can't tell you. That would be investment advice, and we don't give it. Opening a PCRA does not change the funds you already hold.
Keep reading
Education only, not investment advice. Your 401(k)'s own documents govern. If anything here differs from your 401(k)'s rules, your 401(k) is right.