ForumsSolo 401kExisting Vanguard Solo 401k – Should I go with Ascensus or somewhere else?

Forums Solo 401k Existing Vanguard Solo 401k – Should I go with Ascensus or somewhere else?

  • Existing Vanguard Solo 401k – Should I go with Ascensus or somewhere else?

    Mark Nolan replied 1 week, 2 days ago 6 Members · 17 Posts
  • 16 Replies
  • Top SubjectSolo 401k
    Top ForumsSolo 401k

    Charles O
    Top SubjectSolo 401k

    April 19, 2024 at 12:23 pm

    I just saw the news that Vanguard will stop offering SOLO 401(k) plans and Existing Solo 401(k) accounts will be transitioned to Ascensus.

    I’m not sure if I should stick with Ascensus or move my account somewhere else?

    Would love to hear the thoughts from the MySolo401k community – Thanks!

    Charles O
  • Mark Nolan

    Top SubjectSolo 401k,Solo 401k Contributions
    Top ForumsSolo 401k, Solo 401k Contributions

    Mark Nolan

    Mark Nolan

    Top SubjectSolo 401k,Solo 401k Contributions

    April 19, 2024 at 1:09 pm

    By switching to a solo 401k plan from My Solo 401k Financial, you will immediately qualify for the $1,500 auto enrollment credit which neither Schwab nor Fidelity offer through their solo 401k plan. We also put together a post here on why consider switching your existing Individual 401k at Vanguard to a solo 401k from My Solo 401k Financial.

  • George Blower

    Top SubjectDaily Live Webinar,Solo 401k
    Top ForumsDaily Live Webinar, Solo 401k

    George Blower

    George Blower

    Top SubjectDaily Live Webinar,Solo 401k

    April 22, 2024 at 7:25 am

    One consideration for those existing Vanguard Solo 401k account holders with a large account balance (greater than $250,000) such that a Form 5500-EZ is required to be filed for the plan is whether Ascenus will handle the Form 5500-EZ for these Vanguard Individual 401k account holders that transition to Ascensus.

    Ascensus confirmed that they will not handle the Form 5500-EZ and will refer you to your CPA/Tax advisor.

  • Top SubjectReal Estate Investments,Solo 401k Bank Account
    Top ForumsReal Estate Investments, Solo 401k Bank Account

    Steve S
    Top SubjectReal Estate Investments,Solo 401k Bank Account

    April 22, 2024 at 8:52 am

    You often mention eTrade, Fidelity and other brokerage services, but not often using Vanguard Brokerage accounts tied to your mysolo401k.

    Is there a reason Vanguard brokerage is not ideal?

    I currently have a Vanguard Individual 401 (solo), and need to find another provider now that they sold off that business.

    Ideally I would reinstate my Solo401K with mysolo401k, but instead of opening a brokerage account with fidelity, or similar open a Vanguard Brokerage. Is that possible? Any downside compared to fidelity, etrade, schwab ?

    Steve S
  • Brett M

    Top SubjectSolo 401k,Mega Backdoor Roth Solo 401k
    Top ForumsSolo 401k, Mega Backdoor Roth Solo 401k

    Brett M

    Brett M

    Top SubjectSolo 401k,Mega Backdoor Roth Solo 401k

    April 25, 2024 at 10:09 am

    Each month I contribute an employee portion to Roth i401K and employer to i401k.

    When I establish mysolo401k (likely Fidelity), may I use the mega back door for the prior employer contributions (Jan/Feb/March)?

    If no, can I start the mega backdoor from June, or whenever I get new accounts established?

    Your website and forum are amazing, thank you

    Brett M
  • Top ForumsSolo 401k

    Sabina Brescelli

    April 29, 2024 at 6:56 pm

    I have been getting conflicting information regarding the plan sequence number. Does switching to a new plan provider/brokerage trigger a new plan sequence number? Is my understanding correct that a restatement does not trigger a new sequence number? Is it still considered only a restatement, even if the new brokerage firm is governed by a different plan document? On a different topic… which brokerage firms offer the option to receive 401k fund transfers electronicaly?

    Thank you!

    Sabina Brescelli
    • George Blower

      Top SubjectDaily Live Webinar,Solo 401k
      Top ForumsDaily Live Webinar, Solo 401k

      George Blower

      George Blower

      Top SubjectDaily Live Webinar,Solo 401k

      April 29, 2024 at 7:00 pm

      QUESTION:

      I have been getting conflicting information regarding the plan sequence number. Does switching to a new plan provider/brokerage trigger a new plan sequence number? Is my understanding correct that a restatement does not trigger a new sequence number?

      RESPONSE:

      Switching to a new plan provider or brokerage does not trigger a new plan sequence number. When a Solo 401k plan is restated, the plan sequence number remains the same, such as 001.

      QUESTION:

      Is it still considered only a restatement, even if the new brokerage firm is governed by a different plan document?

      RESPONSE:

      Yes, it is still considered a restatement even if the new brokerage firm is governed by a different plan document. Changing the brokerage firm where the accounts for the Solo 401k are opened does not affect the nature of the restatement. The restatement process involves updating or revising the plan documents, regardless of the brokerage firm involved.

      QUESTION:

      On a different topic… which brokerage firms offer the option to receive 401k fund transfers electronically?

      RESPONSE:

      Brokerage firms generally allow for electronic fund transfers such as ACH deposits (from external accounts in the name of the plan) and wire transfers (from accounts generally). In addition and based on client feedback and experience, Fidelity specifically allows for an electronic deposit (ACH) from an external account where the name on the external account does not match the name on the account at Fidelity for the Solo 401k.

      • George Blower

        Top SubjectDaily Live Webinar,Solo 401k
        Top ForumsDaily Live Webinar, Solo 401k

        George Blower

        George Blower

        Top SubjectDaily Live Webinar,Solo 401k

        April 30, 2024 at 3:09 am

        Please see response to question posted on our YouTube Channel:

        QUESTION:

        Actually it is $25 per fund annually. $20 per participant.

        RESPONSE:

        Per the pricing posted on the Ascensus page for existing Vanguard customers, there is a $20 annual fee per Vanguard fund per account holder in this Individual(k) plan and a $20 annual fee per participant for custodial services.

      • Top ForumsSolo 401k

        Sabina Brescelli

        April 30, 2024 at 4:18 am

        Thank you so much for the helpful information you provided. It is my understanding that Fidelity does not offer a Roth option, and unfortunately that would be a deal breaker for us. My question about electronic funds transfers was meant more specifically about the initial transfer of assets from Vanguard. I have been getting conflicting information about that also. And so here my two additional questions:

        1) In your experience, can Schwab and/or E*Trade request the current assets in the plan to be transferred in-kind from Vanguard?

        2) The adoption agreement asks for an effective date of the amendment/restatement. What should that effective date be?

        There are two informational statements about the effective date on the adoption agreement that appear to be in conflict with each other:

        i) The amendment or restatement Effective Date is generally the first day of the Plan Year in which this Adoption Agreement is signed.

        ii) NOTE: Specifying an amendment or restatement Effective Date as any day other than the first day of the Plan Year following the Plan Year in which this Adoption Agreement is signed may result in a reduction or elimination of accrued benefits, violating Code section 411(d)(6). Notwithstanding the foregoing, Effective Dates for certain legislative and regulatory provisions are governed by the terms specified in the Basic Plan Document.

        Would you be able to clear up the confusion on this?

        Again, thank you.

        Sabina Brescelli

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