Vanguard Self Employed 401k vs IRA

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Topic Author
chambers136
Posts: 268
Joined: Tue Feb 28, 2017 9:49 am

Vanguard Self Employed 401k vs IRA

Post by chambers136 »

My wife has an old self employed 401k that is still open, but not actively contributed to. We're considering rolling it into a Vanguard IRA or a Vanguard 401k. She used to do contract work, and there's a very small possibility that she may go back to it, so if it's pretty much all the same, we'd like to keep it in a 401k. This would allow for backdoor Roth conversions as well, since we do not currently have any Traditional IRAs. We would like use Admiral Funds whether it's a 401k or IRA. Does anyone have any insight into advantages or disadvantages of either? I may call and talk to Vanguard as well, but I thought I might get better/additional info here.
Thanks
PFInterest
Posts: 2684
Joined: Sun Jan 08, 2017 12:25 pm

Re: Vanguard Self Employed 401k vs IRA

Post by PFInterest »

if the options are good leave it alone.
Topic Author
chambers136
Posts: 268
Joined: Tue Feb 28, 2017 9:49 am

Re: Vanguard Self Employed 401k vs IRA

Post by chambers136 »

PFInterest wrote:if the options are good leave it alone.
They're not. That's why I want to move it.
Spirit Rider
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Joined: Fri Mar 02, 2007 2:39 pm

Re: Vanguard Self Employed 401k vs IRA

Post by Spirit Rider »

You can amend your one-participant 401k to another provider.

There are two fairly decent options with the equivalent of Vanguard Admiral shares which Vanguard does not offer in their Individual 401k.

TD Ameritrade offers commission-free trades of Vanguard ETFs. They accept rollovers, have designated Roth accounts and offer loans.

Fidelity offers their premium index funds with equivalent expense ratios to Vanguard Admirals shares. They accept rollovers, but do not have designated Roth accounts or loans.
Topic Author
chambers136
Posts: 268
Joined: Tue Feb 28, 2017 9:49 am

Re: Vanguard Self Employed 401k vs IRA

Post by chambers136 »

Spirit Rider wrote:You can amend your one-participant 401k to another provider.

There are two fairly decent options with the equivalent of Vanguard Admiral shares which Vanguard does not offer in their Individual 401k.

TD Ameritrade offers commission-free trades of Vanguard ETFs. They accept rollovers, have designated Roth accounts and offer loans.

Fidelity offers their premium index funds with equivalent expense ratios to Vanguard Admirals shares. They accept rollovers, but do not have designated Roth accounts or loans.
Thanks! No point for me to go to Vanguard if they don't allow Admiral shares. I'll look into Fidelity, as we already have some stuff there.
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