NYC Deferred Comp & ETFs

Update 2/12/2019:  It appears NYC Deferred Comp has fixed this issue.  Thomann Tax was able to buy ETFs inside the TD Ameritrade brokerage window.

The mystery of NYC Deferred Comp and Exchange Traded Funds (ETFs) continues.  According to the NYC Deferred Comp 2017 Annual Report participants are able to buy and sell ETFs.  Also, according to the most recent (01/2019) Summary Guide posted on the NYC Deferred Comp website; “The Plan offers a Self-Directed Brokerage (SDB) option which allows participants with account balances of at least $5,000 to invest in mutual funds and Exchange Traded Funds (ETFs) which are outside of the Deferred Compensation Plan’s investment fund line-up.”

For the past 6 or 7 months, Thomann Tax has attempted to buy ETFs through the TD Ameritrade self-directed option.  Every attempt resulted in the following error message; “this account is limited to mutual fund transactions only.”  It appears that ETFs are not available to be bought and sold in the self-directed brokerage window even though NYC Deferred Comp says they are.  Curious to know if any readers of this blog, who use the TD Ameritrade self-directed option, have been able to buy and sell ETFs.