For those whose solo 401k funds moved to Ascensus from Vanguard ...
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Anonymous
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This link seems useful. And I might contact Rick at Ascensus for help. -OP
https://iraresourcecenter.ascensus.com/idcpro/groups/public/@resourcecenter/documents/webcontent/t010601.pdf Quotes are directly from the pdf link, which is dated July 2024. Changing Trustees An employer may wish to change the plan sponsor or trustee for investment options or perhaps other reasons. Such a change requires an amendment to the plan documents. The easiest way to accomplish this is with an “amendment and restatement” of the plan. The phrase “amendment and restatement” also is used to describe the amendment process used to incorporate amendments for law changes into the plan document. An amendment and restatement of a plan refers to the process of adopting new plan documents with the intent of using the new plan documents as a continuation of an existing plan. The plan generally retains its same eligibility criteria, contribution formula, vesting schedule, distribution options, etc. The amendment merely names a new plan sponsor (and trustee, if applicable). The OFB under the new plan must be at least as generous as under the prior plan (IRC Sec. 411(d)(6)). Because the plan continues, the employer takes no steps to formally terminate the original documents. The steps needed to change sponsors include the following. The employer completes the appropriate plan documents provided by the new plan sponsor. The new documents should reflect that the plan is an amendment and restatement or a continuation of an existing plan. The employer requests, in writing, that the original sponsor issue a check to the new sponsor for the total plan balance, with any necessary adjustments for early withdrawal penalties, etc. The original sponsor indicates in its files that the plan assets were transferred to another plan sponsor (trustee or custodian). Because the transaction is handled as a transfer, no distribution reporting or withholding is necessary. The employer should provide participants with a summary of material modifications (SMM). NOTE: Transfers that arise as the result of a change in plan trustee/custodian often are confused with direct rollovers (which are discussed in detail in Chapter 10, Portability). Transfers (which are nonreportable transactions) generally are initiated by the employer maintaining the plan and entail the movement of an entire plan, intact, to a new trustee or custodian. Direct rollovers (which are reportable transactions) are initiated by an employee or beneficiary and represent the movement of such participant’s balance to a completely different plan (either a different QRP or an IRA). |
Anonymous
Yes, this seems to be correct |
Anonymous
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New Poster. I just called Ascensus hotline today and they are still telling people to terminate themselves and take a distribution. And they have to send the check directly to me??? WTH? I told them I don't want to terminate myself or the plan. I told them I wanted to amend the plan and transfer custodian to a different financial institution. She had no idea what I was talking about. I also used the words "change sponsor" and "change trustee"...still didn't know. Then I asked about Transfer of account paperwork. Still didn't know.
Then I called E*Trade where I would like to transfer the funds and they said it all depended on the plan (which I can't find on the site). But they said the process was to open an i401K with them (and the paperwork does have a check box whether it is new or amendment but not a lot of other instruction like I'm reading here about keeping the same plan number). Then once the account is approved, I would login and transfer account from Accensus...but it is DEPENEDENT ON ACCENSUS APPROVAL. That does not make me feel good. Questions for the collective: * Has anyone transferred a i401k from another institution to etrade? Advice on the process? * Does anyone at Accensus know where to find the plan number online (when logged in)? * What organization regulates the i401K and cares about such issues as to whether a amend and restate the account versus opening a new account and rolling over accensus? I keep hearing here that that is not allowed, but I have not find the official language on such things. I'd also like to call that org and tell them what is going on with Accensus. |
Anonymous
| Go with Fidelity, they actually seem to care about this stuff |
Anonymous
| Have anyone successfully transferred from Ascensus to elsewhere? If so, any tips? |
Anonymous
| Ugh. I have just started this process. |
Anonymous
Me again. Fidelity told me it would be easier to roll over the solo 401k from Ascensus to a fidelity rollover IRA, then move it in to a new solo 401k at Ascensus. I don’t know if that will make a difference. I just mailed the paperwork to open the new fidelity solo 401k. I’m pretty annoyed with how Vanguard handled this. |
Anonymous
Gah, new solo 401k at fidelity* |
Anonymous
Thank you. Did you call them first or open your account online first? Is there a certain department you connected to at Fidelity? |
Anonymous
PS: I'm annoyed with how Vanguard handled this too. I needed more time than they gave us due to a family illness. So, now I feel very behind. I'm also annoyed at the bad advice Ascensus is giving to terminate ourselves and possibly cause a tax event. Insane. |
Anonymous
| Update on my end. I submitted my deconversion form to Ascensus on Monday, October 28. I was told that it could take up to up to 5 business days to process. I called Monday, November 4 to check on the status because there had been some issues on other things in the past. They said that they had the form, it was being processed and the check should go out Thursday, November 7. I went into my Ascensus account today and saw that the funds were still in there. I called Ascensus and after much time on hold they told me that my check wouldn't be cut until November 20! I asked why. They said they didn't know. I said the woman I spoke to on November 4 told me it would be cut on November 7. They said that she was incorrect. I said that Bogleheads users were saying that Fidelity got their checks in a matter of weeks. She said that not every plan is the same. Not sure why mine would be special. She also said they would have someone call me to tell me why mine is taking longer, but given their poor customer service, I am not inclined to believe I am going to hear back from them on their own volition. I will be happy to be wrong. I am also nervous that come November 20 a new issue will be discovered that will be cause for further delay. Can they just hold on to my money like this? It seems very, very sketchy at this point. My only saving grace is that my Fidelity contact has been a wonderful ally thus far. |
Anonymous
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Maybe they didn't want to cut the check earlier because then they could charge you $40. They have charged me $40 two times, and I've been trying to get my account out since early November.
It took me several weeks just to get the proper directions on what to do. I followed them to the letter, logged into Fidelity, and see my account is not yet set up. The money is still with Ascensus, which continues to charge me for doing nothing. |
Anonymous
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Finally, my account is moved to Fidelity!!
It was a long, long road. |
Anonymous
| Well I got screwed. I followed Ascensus procedures and moved my solo 401k to fidelity the way they told me to. Yesterday I received a 1099R from Ascensus, so now the IRS thinks I did a distribution not a transfer. Anyone else dealing with this. Any advice? I will be calling Ascensus on Monday. |
Anonymous
Did you send the paperwork to Fidelity or Ascensus? I’d contact the guy listed above. His email address is there, and he replied to me. He might help or connect you to someone who can. |