Transfers into BrokerageLink

To start, request an exchange of assets from the standard Plan investments into your BrokerageLink account. After the money has been transferred to the BrokerageLink account, a buy trade will be made in the Fidelity® Government Cash Reserves (the BrokerageLink core position). The BrokerageLink core position serves as the hub of your BrokerageLink activities. From there you can request purchases of the investment(s) of your choice within BrokerageLink.

The timing of a transfer from one of the standard Plan investments to the investment of your choice in BrokerageLink can vary based on the type of investment. Contact Fidelity at (866) 956-3193 if you have specific questions about the settlement time of your transfers.

Transfers out of BrokerageLink

To start, determine the amount you want to transfer. You may need to sell some existing BrokerageLink positions to reach the desired transfer amount. All proceeds from these sales will settle into Fidelity® Government Cash Reserves (the BrokerageLink core position). Once available in the core position, you can request a transfer from BrokerageLink to the standard Plan investments. All transfers from BrokerageLink will settle into the BlackRock Short-Term Investment Account. You can then transfer money from the BlackRock Short-Term Investment Account to the standard Plan investment of your choice. 

As settlement times may vary, if a transfer from BrokerageLink requires holdings to be liquidated, the timing of the end-to-end transfer (from BrokerageLink to one of the standard Plan investments) will depend on the type of investment being sold. Contact Fidelity at 1-888-810-6738 if you have specific questions on the settlement time of your transfers. 

After you establish a $2,500 minimum balance in the BrokerageLink account, you can elect to have some or all your payroll contributions invested directly in BrokerageLink. Each pay period, the designated contributions will be directly allocated into the BrokerageLink core position and invested in Fidelity® Government Cash Reserves. You can then go into BrokerageLink and transfer money to the investment of your choice. It is also possible to set up a recurring automatic investment with your payroll contributions into some mutual funds. To learn more about recurring automatic investments, contact Fidelity at (866) 956-3193. 

If at any time you have a negative payroll contribution (usually due to a payroll correction), Fidelity will apply that negative contribution to your standard Plan Investment options first and then your balance within your BrokerageLink account. If needed, Fidelity will then apply the remaining negative contribution to your BrokerageLink holdings. Note that you will be responsible for any fees associated with the sale of the investments to satisfy your negative contribution. 

Generally, available investments to choose from may include, but are not limited to: mutual funds, exchange-traded funds (EFTs), exchange-traded notes (ETNs), closed-end funds (CEFs), stocks, bonds, certificates of deposit, foreign securities, mortgage securities, U.S. Treasury securities, unit investment trusts (UITs), Real Estate Investment Trusts (REITs), and some options.

Quick tip! For information on investing in specific socially responsible funds (environmental, social, and governance or ESG funds) and/or religious-affiliated mutual funds, check out the Specialty Fund FAQ. 

The Plan has been designed in accordance with ERISA section 404(c), and its implementing regulations. Pursuant to those rules, you cannot make an investment that would (i) result in a “prohibited transaction” under ERISA or the Internal Revenue Code, (ii) generate income that would be taxable to the Plan, (iii) be inconsistent with the documents or instruments governing the Plan, (iv) cause a fiduciary to maintain the indicia of ownership of the Plan’s assets outside the jurisdiction of the U.S. courts other than as permitted by DOL regulations, (v) jeopardize the Plan’s tax-qualified status under the Internal Revenue Code, (vi) result in a loss in excess of the participant’s account balance, or (vii) constitute a transaction with the Company that is not covered by section 404(c) and the regulations under that section.

To get help determining if your desired investment is available through BrokerageLink, contact Fidelity at (866) 956-3193. You must know the name of the fund for Fidelity to help you determine if it is available to you in BrokerageLink. 

There are no annual fees to maintain a BrokerageLink account. BrokerageLink operates like other retail brokerage accounts; therefore, transaction fees and commissions will apply to your BrokerageLink transactions. All BrokerageLink fees will be deducted from your BrokerageLink assets. To see a detailed commission schedule or for information on fee details, visit Fidelity NetBenefits or call Fidelity at (866) 956-3193. The transaction fees may be different for transfers from the standard Plan investments into BrokerageLink and payroll contributions directly invested in BrokerageLink.

BrokerageLink and taking money out of the Plan

If you leave your assets in the Plan after separating employment from Microsoft, you can continue to invest and manage the BrokerageLink account with no changes.

If you decide to take your assets out of the Plan (including via rollover), all assets must be liquidated and transferred from BrokerageLink to the standard Plan investment before the distribution can be processed. It is not possible to distribute assets directly from the BrokerageLink account. The only in-kind distributions permitted from the Plan are for Microsoft Stock from the standard Plan investments.

Taking a loan or withdrawal from the BrokerageLink account balance

If you have a BrokerageLink account balance, you can still take a 401(k) loan or withdrawal. BrokerageLink account assets are lienable, but to include these assets as part of your loan or withdrawal, they must first be liquidated and transferred from the BrokerageLink account to the standard Plan investments.