This article answers the most common questions about how Rho Treasury works, including where your assets are held, how fees are calculated, what tax forms to expect, and how to protect your funds. For step-by-step instructions on setting up and managing your account, see Managing your Rho Treasury account.
General
Is Treasury a bank account?
No. Rho Treasury is an investment account, not a bank account. Your cash is invested in short-duration securities – T-Bills, MULSX, and/or VFSTX / VFSUX – and, if you are enrolled in the money market fund sweep, swept into IJTXX. These holdings are held directly in your company's name at our custodial partner, Apex Clearing Corporation. Treasury assets are not deposits and are not FDIC-insured. Treasury assets held at Apex Clearing Corporation are covered by Securities Investor Protection Corporation (SIPC) insurance up to $500,000 (including a $250,000 limit for cash).
What assets can I hold in Rho Treasury?
Rho Treasury supports four assets, which you can hold simultaneously in any combination:
IJTXX – JPMorgan U.S. Treasury Plus Money Market Fund. A money market fund offered as a cash sweep with same-day liquidity. Best for cash you may need on short notice. Visit our helpful article to learn more about the IJTXX MMF sweep.
T-Bills (13-week) – U.S. government-backed securities. Suitable for cash you won't need for at least 3 months.
MULSX – Morgan Stanley Ultra-Short Income Fund. Suitable for cash you won't need for 4 to 6 months.
VFSTX / VFSUX – Vanguard Short-Term Investment-Grade Fund (Investor or Admiral Shares). Suitable for cash you won't need for at least a year. Closed to new investments.
Note: The Vanguard fund is closed to new investments. If your account already holds Vanguard (VFSTX or VFSUX), any change you make to your portfolio caps Vanguard at 35%. If you hold more than 35% today, a change sells the extra shares at the current market price, and this sale can realize a loss. This limit reflects the fund's longer time horizon. It is best suited for cash you won't need for at least 12 months, not operating capital. Contact the Rho team if you need a higher limit or have questions.
Why can’t I see VFSUX or the IJTXX MMF sweep?
VFSUX and the IJTXX money market fund sweep are available through Apex Ascend, our new custody platform.
If you joined Rho Treasury on or after July 23, 2026, your account is on Ascend, and both options are available to you. If you joined before July 23, your account will migrate to Ascend in the coming months. These options will become available once your migration is complete.
Please contact us with any questions about the migration.
What is VFSUX, and what happens to my VFSTX investment?
Note: VFSUX and VFSTX are currently closed to new investments in Rho Treasury. Learn more about why here.
VFSUX and VFSTX are share classes of the same Vanguard Short-Term Investment-Grade Fund. They invest in the same underlying portfolio, but VFSUX, the Admiral Shares class, has a lower expense ratio. VFSUX is now the only Vanguard fund available for new allocations.
If you already hold VFSTX, you will continue holding it. Here’s what to expect:
Your existing VFSTX investment stays as is. We will not sell it automatically, and there is no deadline to move it.
New money is invested in VFSUX. You will continue to receive dividends on your VFSTX position. Those dividends, along with new deposits and interest, will be invested in VFSUX rather than VFSTX going forward.
Your Vanguard allocation will appear across both funds. You will continue to set one Vanguard target in the ‘Edit Portfolio’ flow. Your ‘Portfolio’ tab will show separate VFSTX and VFSUX positions that together make up your Vanguard allocation.
VFSTX is sold before VFSUX. When a withdrawal or rebalance requires us to sell from your Vanguard allocation, we sell shares on a first-in, first-out basis (FIFO). Because your VFSTX shares are older, they are sold first. Over time, your VFSTX balance will decrease while your VFSUX balance grows.
VFSTX disappears when its balance reaches $0.00. It will no longer appear in your portfolio, and your full Vanguard allocation will appear as VFSUX. Your previous VFSTX transactions will remain in your Activity history.
The 35% limit applies to both funds combined. Your total VFSTX and VFSUX allocation is limited to 35% of your portfolio. Existing allocations above 35% can remain in place. However, before submitting any portfolio changes, you will need to reduce your combined Vanguard target to 35% or less unless we have approved a higher limit for your account.
You don’t need to take any action. If you prefer to move your entire VFSTX position to VFSUX now, contact the Rho team. Because the switch requires selling your VFSTX shares, it may result in a taxable gain or loss. Consult your tax advisor about your specific situation.
Are my assets pooled with those of other clients?
No. Securities are held directly in your business's name and are not pooled with other clients' assets.
Who can move funds in and out of my Treasury account?
Funds can only be transferred to and from your Rho Checking account by individuals you have authorized in your Rho account settings, or through auto-transfer rules you have configured.
Read more on auto-transfer rules here.
Eligibility and setup
What information is required to apply?
Applying for Treasury requires standard KYC information including SSN//TIN/Passport/EIN. You may also be asked to provide formation documents, a business license, a certificate of good standing, and beneficial ownership and authorization forms.
How do I know if I’m eligible for an account?
If you’re eligible, go to the Treasury tab in your Rho dashboard and follow the steps to apply. The application takes less than 10 minutes, and approval typically takes up to 2 business days. If you don’t see the Treasury page but believe you're eligible, contact our Client Services team.
Read more on eligibility requirements here.
Can I give my accountant access to my Treasury account?
Yes. You can set your accountant up with read-only access to your Treasury account. They will be able to view your monthly statements, trade confirmations, and tax documents.
Can I close my Treasury account?
Yes, at any time, by contacting Rho. Closing requires liquidating all holdings, which typically takes 2-3 business days. Assets sold during closure are sold at current market prices and may lose value compared to your original investment.
Protection and insurance
What protection do I have on my Treasury assets?
Treasury assets held at Apex Clearing Corporation are covered by Securities Investor Protection Corporation (SIPC) insurance up to $500,000 (including a $250,000 limit for cash). SIPC protects against the loss of assets in the event of a brokerage failure – it does not protect against the decline in value of your securities.
Are Treasury assets FDIC-insured?
No. Treasury assets are securities, not bank deposits, and are not FDIC-insured. T-Bills are backed by the full faith and credit of the U.S. government. MULSX and VFSTX / VFSUX are mutual funds with variable NAVs, so their share prices move with interest rates and the market.
IJTXX is a government money market fund that seeks to hold its share price at $1.00. You could still lose money by investing in it. The fund cannot guarantee it will maintain a $1.00 share price, and an investment in the fund is not insured or guaranteed by the FDIC.
For FDIC-insured coverage, see Rho Checking accounts.
Yield and fees
What does Rho Treasury cost?
Rho Treasury charges an annualized management fee of 0.15%–0.60%, billed monthly. Your fee tier is based on your total assets under management (AUM). Learn more about AUM-based fees here.
Total AUM | Annual fee |
|---|---|
> $20M | 0.15% (15 bps) |
$10M-$20M | 0.25% (25 bps) |
$5M-$10M | 0.35% (35 bps) |
$2M-$5M | 0.45% (45 bps) |
Under $2M | 0.60% (60 bps) |
Is the yield shown on my dashboard before or after fees?
The yield shown on your Treasury dashboard is net of fees. It already reflects the management fee deducted. Hover over the (ℹ) icon to see your annual management fee percentage.
Tax and reporting
What tax forms will I receive?
Depending on your entity type and activity, Apex may generate a 1099 tax form. Absent an extension, Apex is required to deliver these forms to the account holder by the regulatory due date. All tax forms will be emailed to the account holder from rho@tax-docs.com and uploaded to Rho’s document section.
Why didn't I receive a 1099?
If your activity did not meet IRS reporting thresholds, a 1099 will not be issued. Thresholds are $10 for dividends and interest, $20 for cash in lieu, and $600 for miscellaneous income. Additionally, C corporations are generally exempt from 1099 reporting under IRS broker reporting rules. Not receiving a 1099 does not mean your income is non-taxable. Consult your CPA.
Are T-Bill returns subject to state tax?
Interest earned on T-Bills is subject to federal income tax but is exempt from state and local income taxes. Fund distributions from IJTXX, MULSX, and VFSTX / VFSUX may include a portion of income exempt from state tax, depending on each fund's government securities holdings. Each fund publishes its own figures after year end. Consult your CPA for details.
How do I get my statements for tax purposes?
Go to Settings → Account Statements → Treasury Account to download trade confirmations, monthly or quarterly statements, and tax documents. Your CPA can use full-year statements (January 1 – December 31) to prepare your return.
When are statements generated?
Monthly statements are generated for accounts with deposits, withdrawals, or trades in that month. Dividends and interest payments do not trigger a monthly statement. Accounts without qualifying activity receive a combined quarterly statement instead.
How does Rho Treasury affect QSBS eligibility?
Rho does not manage accounts for Qualified Small Business Stock (QSBS) eligibility or compliance, and clients should consult with their CPA or tax advisor to ensure all applicable QSBS requirements are properly met.
For a deeper dive, read our blog post on QSBS.
Custody & account management
Where is my money custodied?
Your funds are held in your company's name at Apex Clearing Corporation, Rho’s custody provider.
Can I transfer my Treasury holdings to another brokerage via ACAT?
Yes. ACAT transfers are initiated by the receiving brokerage. Note that once an ACAT transfer is initiated, you will be unable to add or withdraw funds for up to 90 days. Your holdings will continue earning returns during that period. Because transfers are initiated externally, Rho's ability to support issues related to the transfer may be limited.
Investment management and advisory services provided by RBB Treasury LLC dba Rho Treasury, an SEC-registered investment adviser and subsidiary of Rho. RBB Treasury LLC facilitates investments in securities: investments are not deposits and are not FDIC-insured. Investments are not bank guaranteed, and may lose value. Investment products involve risk, including the possible loss of the principal invested, and past performance does not indicate future results. Registration with the SEC does not imply a certain level of skill or training. Treasury and custodial services provided through Apex Clearing Corp. ("Apex") and Interactive Brokers LLC ("Interactive"), registered broker dealers and members FINRA/SIPC. Interactive rates may vary from Apex rate shown above. For additional information about investment management and advisory services provided by Rho Treasury, please refer to Rho Treasury’s ADV-2A Wrap Fee Brochure.
This material presented is for informational purposes only and should not be construed as legal, tax, accounting or investment advice. Under no circumstances should any of this material be used for or considered as an offer to sell or a solicitation of any offer to buy an interest in any securities. Any analysis or discussion of financial planning matters, investments, sectors or the market generally are based on current information, including from public sources, that we consider reliable, but we do not represent that any research or the information provided is accurate or complete, and it should not be relied on as such. Our views and opinions are current at the time of publication and are subject to change. You should consult with your attorney or relevant professional advisor for advice particular to your personal or business situation.
Any third-party links are provided for informational purposes only. The third-party sites and content are not endorsed or controlled by Rho.
Rho Treasury is not insured by the FDIC. Rho Treasury are not deposits or other obligations of Webster Bank, a division of Santander Bank, N.A., Lead Bank, or American Deposit Management Co.’s partner banks, and are not guaranteed by Webster Bank a division of Santander Bank, Lead Bank, or American Deposit Management Co.’s partner banks. Rho Treasury products are subject to investment risks, including possible loss of the principal invested.