Solo 401k provide options and a thank you

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firegirl
Posts: 13
Joined: Tue Jan 16, 2018 4:14 am

Solo 401k provide options and a thank you

Post by firegirl » Tue Jan 23, 2018 6:25 am

I had asked about discountsolo401k a few days back because of the ability to take loans out and do an after tax rollover roth. After reviewing the comments and my corp income and business net profits, I've decided to save the cash and go with a free version for my small business. If my side business makes enough money to make the upfront costs of $575 worth it, I can easily amend to discountsolo401k.com later on.

But - the discountsolo 401k.com guy Justin was great, but I think as of right now, I'm not at that point for it to make sense start non-prototype plan.

Now trying to decide between Fidelity and Vanguard. My corp 403B is with Fidelity, my Roth IRA is with Vanguard. My taxable is at Vanguard.

Fidelity 403B = $25K
VG Roth = 11k
VG Taxable = $3K

I really don't mind mailing in a check to Fidelity over ACH or online transfer. I would basically be funding it once a year once I get my final net profit numbers after doing taxes, unless business busts wide open and if I do manage to max out my 403B to 18,500, I would only be able to fund the profit sharing portion anyway. If not, whatever I come up short on in my 403b funding at least I will have some tax advantaged space in my solo 401k.

Knowing this - I know Vanguard charges a $20 fee (is that yearly) and is there a required amount before it can be invested. What about Fidelity, I think there is no fund fees except expense ratio, but is there a minimum amount that must be in there before I can stick it in a mutual fund.

Thanks for everyones responses on my other posts, so glad I found this forum.

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Ethelred
Posts: 337
Joined: Sun Oct 30, 2016 9:38 am

Re: Solo 401k provide options and a thank you

Post by Ethelred » Tue Jan 23, 2018 7:00 am

I like Vanguard, but until they allow Admiral funds and/or ETFs in their individual 401ks, I would only use them if I really wanted to keep everything at one broker, and my other investments were already there.

TwstdSista
Posts: 853
Joined: Thu Nov 16, 2017 4:03 am

Re: Solo 401k provide options and a thank you

Post by TwstdSista » Tue Jan 23, 2018 7:54 am

I opened a solo 401k at Fidelity earlier this month. Current balance = $0.

I have everything at Fidelity, so it keeps things simple for me. Biggest drawbacks for some are the lack of a Roth option or a loan option. They do require a check (or an ACH to your brokerage and then a transfer from there works also I'm told -- but I like to drop off a check, they have the nicest people at my local office).

harvestbook
Posts: 419
Joined: Sat Mar 18, 2017 7:12 pm

Re: Solo 401k provide options and a thank you

Post by harvestbook » Tue Jan 23, 2018 9:18 am

We started at Vanguard last year just because everything else is there. The lack of admiral funds led to me to just pick a Lifestrategy Growth fund and leave it alone, which may turn out to be better for me than saving .1 on ER and trying to be smart at Fidelity.
I'm not smart enough to know, and I can't afford to guess.

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spdoublebass
Posts: 401
Joined: Thu Apr 27, 2017 10:04 pm
Location: NY

Re: Solo 401k provide options and a thank you

Post by spdoublebass » Tue Jan 23, 2018 9:37 am

If I remember correctly...

Vanguard has a 20$ yearly fee PER FUND. THey wave the fee at a certain amount. You can open the account without meeting any minimums, which is nice. You can also contribute any amount (greater than $5) to the fund without a transaction fee.

I thought, but please correct this if I'm wrong, that Fidelity does not allow online deposits. You have to mail a check or do it in person? Also, they might charge a transaction fee. Again, please check that information.

I wasn't thrilled with vanguards 401K, but I think the pros outweighed the cons for my situation. I had a lot of little amounts of cash that I needed to deposit throughout the week. I'm glad I did now. I'm pretty happy with them.
Resist much, obey little.

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