Vanguard is folding its solo 401k business - any recs for a new provider?

[Anonymous]

Today I received a letter in the mail from Vanguard saying they are moving individual 401k/SEP IRA plans to Ascensus. My $0 fee solo 401k is about to get more expensive, so I'm interested in taking my retirement funds elsewhere.

Here's a bogleheads topic about it: https://www.bogleheads.org/forum/viewtopic.php?t=429947&start=150 - Until I read through this, I never knew about a one-year waiting period between closing a plan and opening a new one, so if I'm reading this correctly, to avoid the waiting period the new custodian/401k provider will need to "adopt" my current plan, and there are lots of forms to fill out and ways to mess everything up!

There aren't a whole lot of options, and I don't need anything complex, so I'm wondering if anyone has an i401k that they love and recommend. My main concerns are (1) ability to contribute online and NOT with snail mail checks, (2) low fees, (3) good ETF/fund/target date/international options. Having a Roth option is a nice but unnecessary bonus, as is the ability to take out a 401k loan.

So far it looks like I could use e-Trade, Fidelity, Schwab, or someone else.

- E-Trade has many trading options, the ability to make online contributions, low fees, and mixed reviews. Plus it was acquired by someone else recently, so everything could change.
- Does Fidelity allow you to contribute online? I see conflicting messages throughout the internet.
- Schwab might require checks to contribute, which I absolutely don't want.
- any others out there?

I could keep my money with Ascensus, but there are fees to move the money after January 2025, so I might as well look into moving now.

[Anonymous]

Why would vanguard do this? I’d think they would want to capture this market of entrepreneurs and self-employed

[Anonymous]

I received the same letter. Question for the group - I had my own company for a period of time when I was consulting and now I am back to working for a corporation. Is is possible to role my solo 401k I opened under my business into my employers 401k? Trying to minimize the number of retirement accounts I have to manage.

[Anonymous]

Anonymous wrote:Why would vanguard do this? I’d think they would want to capture this market of entrepreneurs and self-employed

It's the back office operations. This company already manages 529 plans for Vanguard. From the retail customer standpoint it's all done on the Vanguard site. Most customers won't notice a difference.

[Anonymous]

I'm wondering the same thing, OP!

I don't like the Ascensus fees, and the $25 fee just to cancel an account is ridiculous. Ascensus will earn so much money just because people didn't open their mail to see this news.

[Anonymous]

Anonymous wrote:Why would vanguard do this? I’d think they would want to capture this market of entrepreneurs and self-employed

I'll guess that it's more pain/administrative headache than it's worth.

[Anonymous]

OP again .. I answered one of my questions.

Fidelity does allow online payments: https://www.fidelity.com/retirement-ira/small-business/self-employed-401k/overview#contribute-to-account

[Anonymous]

Anonymous wrote:I received the same letter. Question for the group - I had my own company for a period of time when I was consulting and now I am back to working for a corporation. Is is possible to role my solo 401k I opened under my business into my employers 401k? Trying to minimize the number of retirement accounts I have to manage.

You might have to ask Vanguard that one.

I'm wondering if I can roll the 401K into a Vanguard Roth without a penalty. My guess is no.

[Anonymous]

Anonymous wrote:

Anonymous wrote:I received the same letter. Question for the group - I had my own company for a period of time when I was consulting and now I am back to working for a corporation. Is is possible to role my solo 401k I opened under my business into my employers 401k? Trying to minimize the number of retirement accounts I have to manage.

You might have to ask Vanguard that one.

I'm wondering if I can roll the 401K into a Vanguard Roth without a penalty. My guess is no.

If you pay all the taxes on it. And it's called a conversion, not a rollover, because you are changing the type and taxability of the account

[Anonymous]

I only have me and 1 fund so I'll stick with them seems easier than messing around with the transfer

[Anonymous]

Anonymous wrote:I received the same letter. Question for the group - I had my own company for a period of time when I was consulting and now I am back to working for a corporation. Is is possible to role my solo 401k I opened under my business into my employers 401k? Trying to minimize the number of retirement accounts I have to manage.

That's a question for your employer's 401K custodians, but typically yes.

[Anonymous]

Anonymous wrote:I received the same letter. Question for the group - I had my own company for a period of time when I was consulting and now I am back to working for a corporation. Is is possible to role my solo 401k I opened under my business into my employers 401k? Trying to minimize the number of retirement accounts I have to manage.

yes. Solo 401k is just a 401k. I did the reverse -- rollover my corporate sponsored 401k to my solo 401k that I opened when I was self employed.

I used TDA, now Schwab.

[Anonymous]

I’m not OP. Based on the answers, I’ll look at Schwab and Fidelity. I already have a Schwab account so that might be simplest.

Hoping for lower fees and the ability to add money electronically.

Vanguard never could combine my 401k into one accessible account with my other Vanguard investments and getting logged into the 401k area was always a pain.

My guess is I’m not the only one with this issue, and it was probably costly for Vanguard.

—A PP

[Anonymous]

Anonymous wrote:I received the same letter. Question for the group - I had my own company for a period of time when I was consulting and now I am back to working for a corporation. Is is possible to role my solo 401k I opened under my business into my employers 401k? Trying to minimize the number of retirement accounts I have to manage.

Yes.

[Anonymous]

My 529s are moving to the same company from another brokerage.

I’m not moving them but I wish they had to tell us who/what is the ownership of this company.