I'm kind of in the same position as you. I would have probably gone with Schwab a while ago (not Fidelity because I need a Roth Solo 401(k) account too which Fidelity doesn't offer) except I want to keep investing in the Vanguard funds and don't want the fees which Schwab also charges for that. E*TRADE apparently allows you to invest in Vanguard funds for free in their Solo401k without any fees and also has a Roth component available. However, some people have said E*TRADE has other issues that made them not like that option. I also have considered MySolo401k and in fact would almost certainly go with them so I can do MegaBackdoor Roth, but I can't figure out if I can claim the auto-enrollment credit they offer while self-filing taxes. So I'm kind of stuck between going with E*TRADE or MySolo401k and waiting for more information to choose. And I'm going to run out of time and it looks like I'm going to have to just let the plan move to Ascensus and then possibly move it again.Ugh, I had made the decision to move my Vanguard Solo/Individual 401K to Fidelity based on what I have read over the weeks, and thought I could do that today. I called Fidelty and they were helpful about telling me what forms I need to complete. Also just got off the phone with Vanguard and they assure me I have until 7/12 to opt out of sending my info to Ascensus, and I can do that just by calling them (they will then not send me account info to Asnensus.
However, I have the following questions. All of the funds I have in the solo 401K are Vanguard funds(VBTLX, VTABX, VTIAX, and VTSAX). Well, Fidelity charges a $75 transaction fee every time I buy more of these funds (contribute). I do plan to continue to contribute to the solo 401K so not sure what to do? Move the funds (which is free) and pick new funds to contribute to? I would not know how to do that. I spoke with a Fidelity Solutions Team member, and he showed me basically how to use their tool, but it s not really enough to help me make decisions and I am not even sure if it makes sense for me to move these funds over and open new ones?
Other questions
-Would there be penalities/become taxable if I allow the Ascensus transfer to happen due to time limitations and then transfer/amend again
-Any guidance/help about what to do would help a lot. I thought going to Fidelty would be an easy choice...and I knew they had the funds; just didnt know there would be these fees.
Ascensus told me that the first $20 participant and per fund fees will be charged in November and that the fee for transferring away from them won't kick in until next year. This is just what they told me so call them and confirm if it's important to you. But if true then, even if the plan moves to Ascensus, we would have until November to move it again without any fees at all. I've also heard some brokers will cover your transfer fee if you move to them. So in that case even if you waited and Ascensus charged a fee, you could probably get it reimbursed by the broker you're moving the plan to.
Anyone else look like they may get moved over to Ascensus just because of running out of time to figure out where else to move it instead?
Statistics: Posted by GoldenBear17 — Sat Jul 06, 2024 1:42 am — Replies 924 — Views 96419
